IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA CrMMO No.870 of 2026 Date of Decision: 12.8.2026 _____________________________________________________________________ Upasana Jhina ……...Petitioner Versus Meena Chandel ….….Respondent Coram Hon’ble Mr. Justice Sandeep Sharma, Judge. Whether approved for reporting? For the Petitioner: Mr. Rohan Tomar, Advocate. For the Respondent: Ms. Tamanna Rana, Advocate. ___________________________________________________________________________ Sandeep Sharma, J. (Oral) By way of instant petition, filed under Section 147 of the Negotiable Instruments Act read with Section 528 of the Bhartiya Nagarik Suraksha Sanhita, 2023, challenge has been laid to the judgment dated 16.03.2026, passed by the learned Sessions Judge, Shimla, Himachal Pradesh, in Criminal Appeal No. 76/2025, affirming judgment of conviction and order of sentence dated 28.03.2025, passed by the learned Additional Chief Judicial Magistrate-I, Mandi, Himachal Pradesh in Criminal Case No.484/2019, whereby the learned trial Court while holding the petitioner-accused guilty of having committed offence punishable under Section 138 of the Negotiable Instruments Act (hereinafter referred to as the 'Act'), convicted and sentenced her to undergo simple imprisonment for a 2 period of three months and pay compensation to the tune of Rs. 13,50,000/- to the complainant. 2. Precisely, the facts of the case, as emerge from the record are that respondent-complainant instituted a complaint under Section 138 of the Act, in the competent court of law, alleging therein that accused with a view to discharge her liability issued cheque amounting to Rs. 10,00,000/- but fact remains that aforesaid cheque on its presentation, was dishonoured on account of insufficient funds. Since petitioner-accused failed to make the payment good within the time stipulated in the legal notice, respondent/complainant was compelled to initiate proceedings before the competent Court of law under Section 138 of the Act. 3. Learned trial Court on the basis of material adduced on record by the respective parties, vide judgment/order dated 28.3.2025 held the petitioner-accused guilty of having committed offence under Section 138 of the Act and accordingly, convicted and sentenced her as per the description given herein above. 4. Being aggrieved and dissatisfied with the aforesaid judgment of conviction recorded by the court below, accused preferred an appeal in the court of learned first appellate court, which also came to be dismissed vide judgment dated 16.3.2026, as a consequence of which, judgment of conviction recorded by the learned trial Court came to be upheld. In the 3 aforesaid background, present petitioner-accused has approached this Court by way of instant proceedings, seeking therein her acquittal after setting aside the judgments of conviction recorded by the courts below. 5. Mr. Rohan Tomar, learned counsel for the petitioner-accused, states that dispute stands settled between the parties for a sum of Rs. 11,90,000/-. He states that sum of Rs. 9,90,000/- already stands paid to the respondent/complainant and amount i.e. 2,00,000/-, lying deposited with the learned trial Court can be released in favour of the respondent/complainant. He submits that in view of the above, this Court while exercising power under Section 147 of the Act, may proceed to compound the offence and acquit the accused. 6. While acknowledging the factum of compromise on the cheque amount, Ms. Tamanna Rana, learned counsel appearing for the respondent-complainant, states that respondent/complainant has already received sum of Rs. 9,90,000/-, whereas remaining amount lying deposited with the learned trial Court by the petitioner-accused, can be released in her client’s favour. She further submits that since respondent-complainant was unnecessarily dragged into litigation for realization of her own money, this Court may also award some litigation cost. 7. Having taken note of the fact that entire amount of compensation stands paid to the respondent-complainant and respondent 4 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 by the courts below. 8. 8. Consequently, in view of the above, present matter is ordered to be compounded and impugned judgments of conviction and sentence dated 28.3.2025 and 16.3.2026, passed by the courts below are quashed and set- aside and the petitioner-accused is acquitted of the charge framed against her under Section 138 of the Act. Interim order, if any, is vacated. Bail bonds, if any, are discharged. Since respondent-complainant was unnecessarily compelled to institute legal proceedings against the accused that too for realization of her own money, this court deems it fit to direct the accused to pay sum of Rs. 20,000/- as litigation cost, to the respondent-complainant, payable within six weeks. Ordered accordingly. Apart from above, petitioner shall also be liable to deposit sum of Rs.10,000/- as compounding fee with the Himachal Pradesh State Legal Services Authority, within aforesaid period, failing which, accused besides 5 rendering herself liable for penal consequences would also invite contempt proceedings. Learned trial Court is also directed to release the amount lying deposited with it in favour of the complainant on filing appropriate application within one week, providing therein saving bank account details of the complainant. The petition is disposed of along with pending applications, if any. 9. List for compliance on 5.10.2026. August 12, 2026 (Sandeep Sharma), (manjit) Judge