CRA-AS-82-2025 (O&M) IN THE HIGH COURT FOR THE STATES OF PUNJAB AND 111+293 The Primary Cooperative Agriculture Development Bank Ltd. Darshan Singh CORAM: HON'BLE MRS. JUSTICE Present:- MANISHA BATRA, J. 1. CRM-28278 of the fact that the parties have amicably settled their dispute. main revision petition, the application is disposed o which is also listed today, be taken up. 2. CRA-AS and the respondent/accused was held guilty for commission of offence punishable under Section 138 of the Negotiable Instruments Act, 1881 short ‘N. I. Act’) quantum of sentence. aforesaid application, thereby submitting that the offence may be compounded as the matter stands amicably settled between the parties. 2025 (O&M) IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH The Primary Cooperative Agriculture Development Bank Ltd. Versus Darshan Singh CORAM: HON'BLE MRS. JUSTICE MANISHA BATRA Mr. Ajit Singh Sodhi, Advocate for the appellant. Mr. Ishan Gupta, Advocate for the respondent. MANISHA BATRA, J. (Oral) 28278-2025 Prayer in this application is for compounding the offence in view of the fact that the parties have amicably settled their dispute. Since the prayer made in this application has direct bearing on the main revision petition, the application is disposed o which is also listed today, be taken up. AS-82-2025 (O&M) Vide judgment dated 14.05.2025, the present appeal was allowed and the respondent/accused was held guilty for commission of offence punishable under Section 138 of the Negotiable Instruments Act, 1881 short ‘N. I. Act’). Thereafter, the appeal was lis quantum of sentence. In the meanwhile, the respondent/accused has moved the aforesaid application, thereby submitting that the offence may be compounded as the matter stands amicably settled between the parties. -1- IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH CRA-AS-82-2025 (O&M) Date of decision: 11.08.2025 ...Petitioner ...Respondent MANISHA BATRA Ajit Singh Sodhi, Advocate Prayer in this application is for compounding the offence in view of the fact that the parties have amicably settled their dispute. Since the prayer made in this application has direct bearing on the main revision petition, the application is disposed of and let the main case, Vide judgment dated 14.05.2025, the present appeal was allowed and the respondent/accused was held guilty for commission of offence punishable under Section 138 of the Negotiable Instruments Act, 1881 Thereafter, the appeal was listed for pronouncing the In the meanwhile, the respondent/accused has moved the aforesaid application, thereby submitting that the offence may be compounded as the matter stands amicably settled between the parties. 11.08.2025 ...Petitioner ...Respondent Prayer in this application is for compounding the offence in view Since the prayer made in this application has direct bearing on the f and let the main case, Vide judgment dated 14.05.2025, the present appeal was allowed and the respondent/accused was held guilty for commission of offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (for ted for pronouncing the In the meanwhile, the respondent/accused has moved the aforesaid application, thereby submitting that the offence may be compounded MOHAMMAD WASEEM ANSARI 2025.08.12 09:13 I attest to the accuracy and integrity of this document CRA-AS-82-2025 (O&M) 3. amicable settlement respondent. amicable settlement respondent. In pursuance of the said settlement, t been given by the appellant also admits the factum of the above stated arrived between the parties and about receipt of entire disputed amount and therefore, he deserves to be granted permission to compound the offence. 4. receiving the entire disputed amount from the that he has no objection if the offence is compounded respondent. 5. compoundable offences. It is well settled proposition of law by now that in view of the provisions contained under this Section read with Section 320 of Cr.P.C., a compromise arrived committed under Section 138 of N even after conviction. Reference in this regard can be made to the judgment dated 02.03.2022 pronounced by the High Court of Himachal Pradesh in Criminal Misc. (mai titled as Hiranand Shastri Vs. Ram Rattan Thakur and another was observed that the judgment of conviction recorded under Section 138 of N I. Act can be recalled, in view of the specific Section 147 of the Act, which provide for compounding of offence allegedly committed under Section 138 of N down in the judgment dated 21.12.2021 in 2025 (O&M) It is argued by learned counsel for the amicable settlement has been arrived at between the . In pursuance of the said settlement, t been given by the respondent to the appellant/Bank also admits the factum of the above stated arrived between the parties and about receipt of entire disputed amount and therefore, he deserves to be granted permission to compound the offence. Learned counsel for the appellant receiving the entire disputed amount from the that he has no objection if the offence is compounded . Section 147 of N. I. Act makes all offenc compoundable offences. It is well settled proposition of law by now that in view of the provisions contained under this Section read with Section 320 of Cr.P.C., a compromise arrived inter se parties can be accepte committed under Section 138 of N. I. Act, can be ordered to be compounded even after conviction. Reference in this regard can be made to the judgment dated 02.03.2022 pronounced by the High Court of Himachal Pradesh in Criminal Misc. (main) petition No. 107 of 2022 under Section 482 of Cr.P.C. Hiranand Shastri Vs. Ram Rattan Thakur and another was observed that the judgment of conviction recorded under Section 138 of N Act can be recalled, in view of the specific Section 147 of the Act, which provide for compounding of offence allegedly committed under Section 138 of N.I. Act. Similar proposition of law was laid down in the judgment dated 21.12.2021 in -2- unsel for the respondent/accused that an been arrived at between the appellant and . In pursuance of the said settlement, the entire disputed amount has appellant/Bank. It is submitted that also admits the factum of the above stated settlement having been arrived between the parties and about receipt of entire disputed amount and therefore, he deserves to be granted permission to compound the offence. the appellant has affirmed the factum of receiving the entire disputed amount from the respondent and has submitted that he has no objection if the offence is compounded in favour of the Act makes all offences under this Act as compoundable offences. It is well settled proposition of law by now that in view of the provisions contained under this Section read with Section 320 of parties can be accepted and the offence Act, can be ordered to be compounded even after conviction. Reference in this regard can be made to the judgment dated 02.03.2022 pronounced by the High Court of Himachal Pradesh in n) petition No. 107 of 2022 under Section 482 of Cr.P.C. Hiranand Shastri Vs. Ram Rattan Thakur and another, wherein it was observed that the judgment of conviction recorded under Section 138 of N Act can be recalled, in view of the specific provisions contained under Section 147 of the Act, which provide for compounding of offence allegedly Act. Similar proposition of law was laid down in the judgment dated 21.12.2021 in CRM-M-No. 2499-2021 in Geeta that an and the he entire disputed amount has is submitted that the having been arrived between the parties and about receipt of entire disputed amount and the factum of and has submitted in favour of the Act as compoundable offences. It is well settled proposition of law by now that in view of the provisions contained under this Section read with Section 320 of d and the offence Act, can be ordered to be compounded even after conviction. Reference in this regard can be made to the judgment dated 02.03.2022 pronounced by the High Court of Himachal Pradesh in n) petition No. 107 of 2022 under Section 482 of Cr.P.C. , wherein it was observed that the judgment of conviction recorded under Section 138 of N. provisions contained under Section 147 of the Act, which provide for compounding of offence allegedly Act. Similar proposition of law was laid Geeta MOHAMMAD WASEEM ANSARI 2025.08.12 09:13 I attest to the accuracy and integrity of this document CRA-AS-82-2025 (O&M) Devi Vs. Surinder Singh and another’ Court of Himachal Pradesh that the Court has ample powers under Section 147 of N.I. Act to compound the offence in those cases, where the accused already stands convicted. Singh and another vs. State of Haryana and another, 2013 (4) R.C.R. (Criminal) 102 the conviction, if the parties have settled the dispute amicably an decided to live in peace and harmony, this Court, in exercise of powers under Section 482 Cr.P.C., can compound the offence. 6. (Criminal) 851, with regard to the proceedings conducted in connection with complaints filed under Section 138 of NI Act. It was observed that the interest of the complainant lied primarily in recovering the mone drawer of the cheque in jail with cheque and it is compensatory aspect of the remedy which should be given priority over the punitive aspect. and another (2024) 5 SCR 203 that keeping in mind that ‘compensatory aspect,’ of remedy shall have priority over the ‘punitive aspect’, courts should encourage compounding of offences under the N. 7. their dispute amicably been paid by the counsel for 2025 (O&M) . Surinder Singh and another’, wherein it was observed by the High Court of Himachal Pradesh that the Court has ample powers under Section 147 Act to compound the offence in those cases, where the accused already stands convicted. Reference can also be made to the authority cited as Singh and another vs. State of Haryana and another, 2013 (4) R.C.R. (Criminal) 102, wherein a Division Bench of this Court has held that even after the conviction, if the parties have settled the dispute amicably an decided to live in peace and harmony, this Court, in exercise of powers under Section 482 Cr.P.C., can compound the offence. In Damodar S. Prabhu Vs. Sayed babalal H. 2010(2) RCR (Criminal) 851, the Hon’ble Supreme Court had laid down several guidelines with regard to the proceedings conducted in connection with complaints filed under Section 138 of NI Act. It was observed that the interest of the complainant lied primarily in recovering the mone drawer of the cheque in jail with respect to the offence of dishono cheque and it is compensatory aspect of the remedy which should be given priority over the punitive aspect. In Raj Reddy Kallen Vs. State of Haryana nother (2024) 5 SCR 203, it was observed by Hon’ble Supreme Court that keeping in mind that ‘compensatory aspect,’ of remedy shall have priority over the ‘punitive aspect’, courts should encourage compounding of offences .I. Act, if the parties are willing to do so. In the instant case, as discussed above, the parties have their dispute amicably, in pursuance of which, been paid by the respondent to the appellant counsel for the appellant. He has stated that the -3- , wherein it was observed by the High Court of Himachal Pradesh that the Court has ample powers under Section 147 Act to compound the offence in those cases, where the accused already o be made to the authority cited as Sube Singh and another vs. State of Haryana and another, 2013 (4) R.C.R. , wherein a Division Bench of this Court has held that even after the conviction, if the parties have settled the dispute amicably and have decided to live in peace and harmony, this Court, in exercise of powers under Section 482 Cr.P.C., can compound the offence. Damodar S. Prabhu Vs. Sayed babalal H. 2010(2) RCR the Hon’ble Supreme Court had laid down several guidelines with regard to the proceedings conducted in connection with complaints filed under Section 138 of NI Act. It was observed that the interest of the complainant lied primarily in recovering the money rather than seeing t respect to the offence of dishonour of the cheque and it is compensatory aspect of the remedy which should be given Raj Reddy Kallen Vs. State of Haryana , it was observed by Hon’ble Supreme Court that keeping in mind that ‘compensatory aspect,’ of remedy shall have priority over the ‘punitive aspect’, courts should encourage compounding of offences are willing to do so. In the instant case, as discussed above, the parties have settl in pursuance of which, the entire disputed amount respondent to the appellant. This fact is affirmed by learned He has stated that the appellant/complainant has no , wherein it was observed by the High Court of Himachal Pradesh that the Court has ample powers under Section 147 Act to compound the offence in those cases, where the accused already Sube Singh and another vs. State of Haryana and another, 2013 (4) R.C.R. , wherein a Division Bench of this Court has held that even after d have decided to live in peace and harmony, this Court, in exercise of powers under Damodar S. Prabhu Vs. Sayed babalal H. 2010(2) RCR the Hon’ble Supreme Court had laid down several guidelines with regard to the proceedings conducted in connection with complaints filed under Section 138 of NI Act. It was observed that the interest of the y rather than seeing the r of the cheque and it is compensatory aspect of the remedy which should be given Raj Reddy Kallen Vs. State of Haryana , it was observed by Hon’ble Supreme Court that keeping in mind that ‘compensatory aspect,’ of remedy shall have priority over the ‘punitive aspect’, courts should encourage compounding of offences settled the entire disputed amount has . This fact is affirmed by learned complainant has no MOHAMMAD WASEEM ANSARI 2025.08.12 09:13 I attest to the accuracy and integrity of this document CRA-AS-82-2025 (O&M) objection if the offence is compounded. between the parties There is no doubt that the settlement permissible the conviction of the petitioner would not serve any purpose and is required to be recalled. In the light of the judicial precedents as referred attendant facts and circumstances of the case, opinion that the respondent. Accordingly, the is hereby recalled and the compounded and the petitioner is acquitted on account of such compounding. 8. if any, is rendered infructuous. 11.08.2025 Waseem Ansari Waseem Ansari Waseem Ansari Waseem Ansari Whether speaking/reasoned Whether reportable 2025 (O&M) objection if the offence is compounded. This between the parties after passing of judgment dated There is no doubt that the appellant and permissible by law. As such, in the considered opinion of this Court, the conviction of the petitioner would not serve any purpose and is required to . In the light of the judicial precedents as referred attendant facts and circumstances of the case, opinion that the offence deserves to be compounded in favour of the . Accordingly, the judgment dated 14.05.2025, passed by this Court, is hereby recalled and the offence for which the petitioner was convicted stands compounded and the petitioner is acquitted on account of such compounding. Since the main petition has been disposed of, pe if any, is rendered infructuous. Whether speaking/reasoned Whether reportable -4- This amicable settlement has arrived at after passing of judgment dated 14.05.2025 by this Court. and the respondent have reached at a by law. As such, in the considered opinion of this Court, the conviction of the petitioner would not serve any purpose and is required to . In the light of the judicial precedents as referred to above and the attendant facts and circumstances of the case, this Court is of the considered offence deserves to be compounded in favour of the dated 14.05.2025, passed by this Court, offence for which the petitioner was convicted stands compounded and the petitioner is acquitted on account of such compounding. Since the main petition has been disposed of, pending application, (MANISHA BATRA) JUDGE Yes/No Yes/No amicable settlement has arrived at this Court. have reached at a by law. As such, in the considered opinion of this Court, the conviction of the petitioner would not serve any purpose and is required to to above and the this Court is of the considered offence deserves to be compounded in favour of the dated 14.05.2025, passed by this Court, offence for which the petitioner was convicted stands compounded and the petitioner is acquitted on account of such compounding. nding application, MOHAMMAD WASEEM ANSARI 2025.08.12 09:13 I attest to the accuracy and integrity of this document