2026:HHC:25813 IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA Criminal Revision No. 713 of 2024 Date of Decision: 01.07.2026 _______________________________________________________ Chaman Lal …….Petitioner Versus M/s Mahindra & Mahindra Financial Services Ltd. … Respondent _______________________________________________________ Coram: Hon’ble Mr. Justice Sandeep Sharma, Judge. Whether approved for reporting? 1 For the Petitioner: Mr. Anirudh Sharma, Advocate. For the Respondent: Mr. Deepak Gupta, Advocate. _______________________________________________________ Sandeep Sharma, Judge(oral): Instant Criminal Revision Petition filed under Section 438 read with Section 442 of Bharatiya Nagarik Suraksha Sanhita, lays challenge to judgment dated 28.08.2024, passed by learned Sessions Judge, Shimla, District Shimla, Himachal Pradesh, in Criminal Appeal No.76-S/10 of 2024, affirming judgment of conviction and order of sentence dated 29.05.2024, passed by learned Additional Chief Judicial Magistrate, Court No.1, Shimla, District Shimla, Himachal Pradesh, in complaint No.423 of 2017, whereby learned trial Court, while holding the petitioner-accused (hereinafter, ‘accused’) guilty of having committed offence punishable under Section 138 of the Negotiable Instruments Act, (for short ‘Act’) convicted and sentenced him to undergo simple imprisonment for a period of six 1Whether the reporters of the local papers may be allowed to see the judgment? 2 2026:HHC:25813 months and pay compensation to the tune of Rs. 8,00,000/- to the respondent-complainant (hereinafter, ‘complainant’). 2. Precisely, the facts of the case, as emerge from the pleadings as well as other material adduced on record are that the respondent-complainant instituted a complaint under Section 138 of the Act in the competent Court of law, alleging therein that cheque bearing No. 029362, dated 05.07.2017, amounting to Rs. 5, 34, 145/-, drawn at ICICI Bank, having been issued by the petitioner-accused towards discharge of his lawful liability was dishonoured on account of insufficient funds in the bank account of the accused. Since, despite having received legal notice, accused failed to make the payment good well within stipulated time, complainant was compelled to initiate proceedings under Section 138 of the Act in the competent Court of law, which subsequently on the basis of evidence adduced on record by the respective parties, held the accused guilty of having committed offence punishable under S. 138 of Act and accordingly convicted and sentenced him, as per description given herein above. 3. Though, being aggrieved and dissatisfied with aforesaid judgment of conviction and order of sentence passed by learned trial Court, accused preferred an appeal in the Court of learned Sessions Judge, Shimla, District Shimla, Himachal Pradesh, but same was dismissed vide judgment dated 28.08.2024. In the aforesaid 3 2026:HHC:25813 background, petitioner-accused has approached this Court in the instant proceedings, praying therein for his acquittal after setting aside judgments of conviction and order of sentence passed by learned trial Court as well as Appellate Court. 4. Vide order dated 07.11.2024, this Court suspended the substantive sentence imposed upon the accused by learned trial Court, subject to the petitioner-accused depositing 30% of the compensation amount and furnishing bail bonds in the sum of Rs. 50,000/-, with one surety of the like amount to the satisfaction of learned trial Court within a period of four weeks. Though, aforesaid order never came to be complied with. 5. Before the case at hand could be heard and decided on its own merit, petitioner has entered into the compromise with the respondent/Complainant, whereby they have resolved to settle their dispute amicably interse them. On account of the compromise, petitioner filed an application under Section 147 of the Act, praying therein for compounding of the offence. 6. Today, during the proceedings of the case, learned counsel representing the petitioner stated that the petitioner has entered into the compromise with the respondent-complainant, whereby they have resolved to settle their dispute amicably. He stated that entire amount of compensation has been already paid to 4 2026:HHC:25813 the respondent-complainant and as such, this Court, while exercising power under Section 147 of the Act, may proceed to compound the offence and acquit the accused of charge framed against him under Section 138 of the Act. 7. Mr. Deepak Gupta, learned counsel representing the respondent-complainant, while fairly acknowledging factum with regard to compromise arrived interse parties, states that since entire compensation amount has been received by the respondent- complainant, this Court may allow the prayer made on behalf of the petitioner-accused for compounding of the offence 8. Having taken note of the fact that entire amount of compensation has been paid to the respondent-complainant and respondent-complainant has no objection in compounding the offence, this Court sees no impediment in accepting the prayer made on behalf of the petitioner for compounding of offence, while exercising power under Section 147 of the Act as well as in terms of guidelines issued by the Hon’ble Apex Court in Damodar S. Prabhu V. Sayed Babalal H. (2010) 5 SCC 663, wherein it has been categorically held that court, while exercising power under Section 147 of the Act, can proceed to compound the offence even after recording of conviction. 5 2026:HHC:25813 9. Consequently, in view of the above, present matter is ordered to be compounded and impugned judgments of conviction and order of sentence passed by learned trial Court as well as Appellate Court are set-aside and the petitioner-accused is acquitted of the charge framed against him under Section 138 of the Act. Bail bonds, if any, are discharged. Interim order, if any, is vacated. 10. Since complainant-bank was compelled to engage in unwarranted litigation with the accused for realization of his own amount, petitioner-accused is directed to pay sum of Rs. 10,000/- as litigation charges to the respondent-complainant and deposit Rs. 10,000/- with the H.P. State Legal Service Authority as compounding fee within a period of eight weeks, failing which, he shall render himself liable for penal consequences as well as contempt of the Court. (Sandeep Sharma), Judge July 01,2026 (shankar)