2025:HHC:45046 IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA Cr. MMO No. : 1242 of 2025 Decided on : 22.12.2025 Hem Chand …Petitioner Versus H.P. State Co-operative Agriculture & Development Bank …Respondent Coram The Hon’ble Mr. Justice Virender Singh, Judge. Whether approved for reporting?1 For the petitioner : Mr. R.L. Verma, Advocate For the respondent : Mr. Deepak Sharma, Advocate. Virender Singh, Judge (oral) Petitioner Hem Chand has filed the present petition, under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (hereinafter referred to as the BNSS) read with Section 147 of the Negotiable Instruments Act (hereinafter referred to as the NI Act’), for quashing of judgment of conviction and order of sentence dated 08.07.2024, passed by the Court of learned Judicial Magistrate First Class, Karsog, District Mandi, H.P., (hereinafter referred to as the ‘trial Court’), in Complaint U/s 138 NI Act No.80 of 2021, titled as Himachal Pradesh 1 Whether Reporters of local papers may be allowed to see the judgment? Yes. 2 2025:HHC:45046 State Co-op. Agriculture & Rural Development Bank versus Hem Chand. 2. Vide judgment of conviction and order of sentence dated 08.07.2024, the learned trial Court has convicted the petitioner, for the offence, punishable under Section 138 of the Negotiable Instruments Act (hereinafter referred to as the ‘NI Act’) and sentenced him to undergo simple imprisonment, for a period of one month and to pay a compensation of Rs.55,000/-/- to the complainant. 3. The said judgment of conviction and order of sentence, has not been assailed by the accused in any of the Courts, as such, he has been arrested, in this case and presently undergoing sentence in Model Central Jail Kanda. 4. Thereafter, the matter has been settled between the accused and the respondent-bank and the petitioner (accused) has filed present petition for permitting the parties to compound the offence, on the ground that the matter has been settled between them. 5. Statements of the learned counsel for the petitioner, as well as, the learned counsel appearing for the 3 2025:HHC:45046 respondent, have been recorded, in which, they both have deposed that the dispute with regard to Cheque No.488465, dated 09.04.2021, has been settled between the parties. 6. Learned counsel for the petitioner has deposed that the petitioner has been convicted and sentenced by the learned trial Court, vide judgment of conviction and order of sentence dated 08.07.2024. 7. The said judgment of conviction and order of sentence, has not been assailed by the the petitioner, in the competent Court of law. As such, the petitioner has been arrested and is presently undergoing sentence in Model Central Jail, Kanda, He has also deposed that thereafter, the matter has been compromised with the respondent Bank and the entire amount has been deposited. Respondent-Bank, has also issued letter dated 22.12.2025, photocopy of which is Mark ‘X’. Now, he is before this Court, in the present petition. 8. Learned counsel for the petitioner-accused has also deposed that on the basis of the said compromise, the present petition may kindly be allowed, by setting aside the 4 2025:HHC:45046 judgment of conviction and order of sentence, referred to above, and he may kindly be acquitted of the charge. 9. Learned counsel appearing for the respondent is also present, in the Court and he has made the similar statement. He has deposed that the respondent, has no objection, in case, the present petition is allowed and the accused is acquitted by setting aside the judgment of conviction and order of sentence dated 08.07.2024. 10. In this case, the petitioner is before this Court under Section 528 of BNSS read with Section 147 of the NI Act. Admittedly, he has not assailed the judgment of conviction and order of sentence dated 08.07.2024, passed by the learned trial Court, before any Court. 11. In such situation, in view of the decision of Division Bench of this Court in Cr. MMO No.188 of 2025, titled as Chune Ram versus Brikam Chand, the present petition is maintainable. In this regard, it is apt to reproduce para 37 of the judgment, as under:- “37. Therefore, we answer the question of law that the power conferred under Section 528 BNSS can always be exercised by the High Court in exercise of its inherent jurisdiction for compounding the offence under Section 147 of the Negotiable Instruments Act and to quash the 5 2025:HHC:45046 conviction finally affirmed by the High Court under Section 138 of the Negotiable Instruments Act, when no proceedings are pending before any Court. The reference case is accordingly directed to be placed before the appropriate Bench after obtaining necessary orders from Hon’ble the Chief Justice.” 12. On the basis of the above statements, one thing is clear that the matter has been settled between the parties and in pursuance of the said settlement, complainant-Bank has received the amount from the petitioner-accused. 13. According to the respondent-complainant, the dispute with regard to Cheque No.488465 dated 09.04.2021, has been settled between the parties. 14. Considering the fact that the matter, with regard to cheque, in question, has been settled between the parties, as such, the present petition is allowed and the parties are permitted to compound the offence, by quashing the judgment of conviction and order of sentence dated 08.07.2024, passed by learned trial Court in Complaint U/s 138 NI Act No.80 of 2021, and the petitioner is acquitted from the offence, punishable under 6 2025:HHC:45046 Section 138 NI Act. His personal and surety bonds are discharged. 15. However, this order is subject to deposit 7.5% of the cheque amount, as compounding fee, during the course of the day with the H.P. High Court Staff Welfare Organization. The compounding fee stands deposited. 16. The petitioner (accused), who is undergoing sentence, in Model Central Jail, Kanda, is ordered to be released forthwith, if not required, in any other case. 17. Pending miscellaneous applications, if any, shall also stand disposed of. ( Virender Singh ) December 22, 2025 (ps) Judge PRADEEP Digitally signed by PRADEEP Date: 2025.12.22 18:20:23 +0530