2026:HHC:34782 IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA Criminal Revision No.359 of 2026 Date of Decision: 18.08.2026 _______________________________________________________ Manoj Kumar …….Petitioner Versus M/s Paul Agro Chemical … Respondent _______________________________________________________ Coram: Hon’ble Mr. Justice Sandeep Sharma, Judge. Whether approved for reporting? 1 For the Petitioner: Mr. Dhiraj Thakur, Advocate. For the Respondent: Ms. Shine Sehgal, Advocate. _______________________________________________________ Sandeep Sharma, Judge(oral): Instant Criminal Revision Petition filed under Section 438 read with 442 of Bharatiya Nagarik Suraksha Sanhita, lays challenge to judgment dated 25.04.2026, passed by learned Additional Sessions Judge, Rampur Bushehar, District Shimla, Himachal Pradesh, in Criminal Appeal CIS Case No.40 of 2025, affirming judgment of conviction and order of sentence dated 11.04.2025 passed by learned Additional Chief Judicial Magistrate, Rampur, Bushehar District Shimla, Himachal Pradesh, in criminal case No.185 of 2019, 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 one year and pay compensation to the tune of 1Whether the reporters of the local papers may be allowed to see the judgment? 2 2026:HHC:34782 Rs. 11,52,979/- 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. 015677, dated 09.01.2019, amounting to Rs. 7, 68, 653/, drawn Punjab National Bank Branch at Tranda, having been issued by the petitioner-accused towards discharge of his lawful liability was dishonoured by the bank concerned with the remarks “Exceeds arrangement”. 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 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 Additional Sessions Judge, Rampur Bushehar, District Shimla, Himachal Pradesh, but same was dismissed vide judgment dated 25.04.2026. 3 2026:HHC:34782 In the aforesaid 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 23.06.2026, this Court suspended the substantive sentence imposed upon the accused by learned trial Court, subject to the petitioner-accused depositing 50% 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. 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. 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 sum of Rs. 3, 00,000/- has already been paid to the respondent- complainant. He stated that towards the balance amount, petitioner- accused has issued post-dated cheque bearing No. 000029, dated 10.11.2026, amounting to Rs. 1,70,000/-, drawn on UCO Bank, Nathpa Julla Branch, District Kinnaur, Himachal Pradesh and another 4 2026:HHC:34782 cheque bearing No. 000030, amounting to Rs. 4,60,000/-, drawn on UCO Bank, Nathpa Julla Branch, District Kinnaur, Himachal Pradesh. He further stated that sum of Rs. 2, 30,000/- lying deposited with the learned Trial Court can be ordered to be released in favour of the respondent-complainant and, thereafter, this Court, while exercising power under Section 147 of the Act, may proceed to compound the offence and acquit the accused of the charge framed against him under Section 138 of the Act. 7. Ms. Shine Sehgal, learned counsel representing the respondent-complainant submits that respondent-complainant shall have no objection in compounding the offence in case, amount lying deposited with the learned trial Court is ordered to be released in its favour. 8. Though, no application under Section 147 of the Act has been filed by the petitioner for compounding the offence, however, this Court has sufficient power to compound the offence under Section 147 of the Act, especially when the complainant is ready and willing for the same, as has been fairly stated by the learned counsel for respondent- complainant. 9. 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 5 2026:HHC:34782 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. 10. 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. 11. Since respondent-complainant was compelled to engage in unwarranted litigation with the accused for realization of its own amount, petitioner-accused is directed to pay sum of Rs. 20,000/- 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 four weeks, failing which, he shall render himself liable for penal consequences as well as contempt of the Court. 12. Learned trial Court is directed to release the amount lying deposited with it in favour of the respondent-complainant, by remitting 6 2026:HHC:34782 the same in its saving bank account, details whereof shall be furnished by learned counsel for the respondent-complainant within a period of two weeks. (Sandeep Sharma), Judge August 18,2026 (shankar)