IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA Cr. Revision No.331 of 2026 Date of Decision: 17.08.2026 __________________________________________________________________________ Nand Lal ……...Petitioner Versus Shimla Automobiles Pvt. Ltd. …....Respondent Coram Hon’ble Mr. Justice Sandeep Sharma, Judge. Whether approved for reporting? For the petitioner: Mr. Aashish Kumar, Advocate. For the Respondent: Mr. V.S. Kanwar, Advocate. _________________________________________________________________________ Sandeep Sharma, J. (Oral) By way of instant petition filed under Section 438 read with Section 442 of Bharatiya Nagarik Suraksha Sanhita, 2023, lays challenge to judgment dated 06.04.2026 passed by the learned Additional Sessions Judge, Ghumarwin, District Bilaspur, Himachal Pradesh, in Criminal Appeal No.12 of 2023, affirming the judgment of conviction and order of sentence dated 24.04.2023/06.05.2023, passed by the learned Additional Chief Judicial Magistrate, Court No.1, Ghumarwin, District Bilaspur, Himachal Pradesh, in Criminal Complaint No.221 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 three months and pay fine to the tune of Rs.8,50,000/- to the respondent-complainant (hereinafter, ‘complainant’). 2 2. Precisely, the facts of the case as emerge from the pleadings as well as other material adduced on record are that complainant filed a complaint under Section 138 of the Act in the competent court of law, alleging therein that accused with a view to discharge his lawful liability issued cheque bearing No.003276 dated 05.04.2019 amounting to Rs.8,00,000/- in favour of the complainant, however, the same was dishonoured on account of insufficient funds in the bank account of the accused. Since accused failed to make the payment good within the time stipulated in the legal notice, complainant was compelled to initiate proceedings under Section 138 of the Act before the competent Court of law. 3. Learned trial Court on the basis of material adduced on record by the respective parties, vide judgment/order dated 24.04.2023/ 06.05.2023, held the accused guilty of having committed offence punishable under Section 138 of the Act and accordingly, convicted and sentenced him as per the description given hereinabove. 4. Being aggrieved and dissatisfied with the aforesaid judgment of conviction recorded by the learned Court below, accused preferred an appeal in the court of the learned Additional Sessions Judge, Ghumarwin, District Bilaspur, Himachal Pradesh, which also came to be dismissed vide judgment dated 06.04.2026, as a consequence of which, judgment of conviction recorded by the learned trial Court came to be upheld. In the aforesaid background, accused has approached this Court in the instant proceedings, seeking therein for his acquittal after setting aside the judgments of conviction recorded by the courts below. 3 5. Before case at hand could be heard and decided on its own merit, parties have entered into compromise, whereby they have resolved to settle the dispute amicably inter se them. 6. Today during proceedings of the case, learned counsel for the accused, on instructions, states that on account of aforesaid amicable settlement arrived inter se parties, this Court, while exercising power under Section 147 of the Act, may proceed to compound the offence and acquit the accused from the charges framed against him. 7. Pursuant to order passed by this Court, Mr. Anil Sharma General Manager/ authorized representative of the complainant/firm has come present in person. He states that he has been authorized to depose on behalf of the complainant that the parties have amicably compromised the matter. He states that in terms of compromise, an agreement dated 17.08.2026 has been executed inter se parties, whereby the accused has agreed to pay a sum of Rs.14,00,000/- in installments. He states that as per agreed terms, accused shall pay an amount of Rs.20,000/- per month on or before 15th of each month with the first installment commencing from September, 2026 and in case accused makes any default in repaying the amount, post-dated security cheque bearing No.236891 amounting to Rs.14,00,000/- of the Punjab National Bank, Banjaar, District Kullu, Himachal Pradesh, shall be liable to be presented for encashment. He states that on account of settlement inter se complainant and the accused, he shall have no objection in case offence alleged to have been committed by the accused in all cases i.e. Cr. Revision No.326 and 327 of 2026 including instant petition are compounded and the accused is acquitted of 4 the charges framed against him under Section 138 of the Act. Afore statement of the accused is taken on record. 8. Accused has also come present in person and is represented by Mr. Ashish Sharma, Advocate. He states that he of his own volition and without there being any pressure, has entered into compromise with the complainant, whereby both the parties have agreed to settle the dispute amicably. He states that as per agreement dated 17.08.2026 executed inter se him and the complainant, he shall pay monthly installments of Rs.20,000/- each and in default, if any, the complainant shall be at liberty to present the post-dated cheque bearing No. 236891, for an amount of Rs.14,00,000/-, for encashment to the concerned bank. Afore statement of the complainant is taken on record. 9. Since parties have resolved to settle the dispute amicably inter se them, as has been taken note hereinabove, coupled with the fact that complainant has no objection in compounding the offence, this Court sees no impediment in accepting the prayer made on behalf of the accused for compounding the 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 by the courts below. 10. Consequently, in view of the discussion made hereinabove as well as law taken into consideration, present matter is ordered to be compounded and impugned judgments of conviction dated 06.04.2026 5 and order of sentence dated 24.04.2023/ 06.05.2023, passed by the learned Courts below are quashed and set-aside. Accused is acquitted of the charge framed against him under Section 138 of the Act. Interim order, if any, is vacated. Bail bonds, if any, are discharged. The petition is disposed of along with pending applications, if any. 11. Since complainant was compelled to engage in unwarranted litigation with the accused for realization of its own amount, accused is directed to deposit Rs.5,000/- with the HP State Legal Service Authority as compounding fee and Rs.10,000/- as litigation charges payable to the complainant within a period of six weeks, failing which, he shall render himself liable for penal consequences as well as contempt of court. (Sandeep Sharma) Judge August 17, 2026 (sunil)