1 ( 2026:HHC:38298 ) IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA Cr.R No. 88 of 2026 Decided on 08th September, 2026 Sangat Singh. …Petitioner Versus Mohan Lal …Respondents Coram Hon’ble Mr. Justice Chirag Bhanu Singh, Judge. 1Whether approved for reporting? For the petitioner: Mr. Jeet Ram Poswal, Advocate. For the respondents: Mr. Bimal Gupta, Senior Advocate, along with Mr. Trigun Singh Negi, Advocate, for the respondent. Chirag Bhanu Singh, Judge (Oral) The petitioner has assailed his conviction and sentence under Section 138 of the Negotiable Instruments Act (NI Act) passed by learned Additional Chief Judicial Magistrate, Court No.I, Paonta Sahib, District Sirmaur, whereby, he was convicted and sentenced vide judgment of conviction and order of sentence dated 05.10.2024 and sentence to undergo simple imprisonment for three months and to pay a compensation of 2 ( 2026:HHC:38298 ) Rs.3,00,000/-. The same came to be affirmed by learned Additional Sessions Judge, Paonta Sahib at Sirmaur and hence this petition. 2. It transpires from the record that during the pendency of the present revision petition, the petitioner/accused has paid the entire compensation amounting of Rs.3,00,000/-. The last installment of Rs.1,50,000/- has been paid by the petitioner- accused and the receipt of the same has been tendered by the learned counsel of the petitioner in the Court today. The learned counsel for the respondent also submits that he has received the entire compensation amount. However, as per the learned counsel an amount of Rs.1,50,000/- i.e. the balance amount is already lying deposited before the learned trial Court. 3. By now, it is fairly well settled that in cases rising from the provisions of the NI Act, if the parties enter into a compromise and the entire money is received by the complainant, the Court is not precluded from compounding the offence and as a sequel the conviction and sentence under Section 138 of the NI Act, can also be resultantly annulled. 3 ( 2026:HHC:38298 ) Reliance in this behalf can be placed on the judgment of the Hon’ble Supreme Court, in case titled as “K.M. Ibrahim versus K.P. Mohammed and another, 2010 (1) SCC 798." 4. The said view has been consistently followed starting from the year 2004, in Anil Kumar Haritwal versus Alka Gupta’s case, reported in 2004 (4) SCC 366, and in a series of judgments thereafter, till K.M. Ibrahim referred hereinabove (supra). 5. It would be opposite to reproduce para-9 of the K.M. Ibrahim’s judgment, which reads as under:- “9. The golden thread in all these decisions is that once a person is allowed to compound a case as provided for under Section 147 of the Negotiable Instruments Act, the conviction under Section 138 of the said Act should also be set aside. In the case of Vinay Devanna Nayak (supra), the issue was raised and after taking note of the provisions of Section 320 Cr.P.C., this Court held that since the matter had been compromised between the parties and payments had been made in full and final settlement of the dues of the Bank, the appeal deserved to be allowed and the appellant was entitled to acquittal. Consequently, the order of conviction and sentence 4 ( 2026:HHC:38298 ) recorded by all the courts were set aside and the appellant was acquitted of the charge leveled against him.” 6. Seeing to the facts and circumstances discussed herein-above and keeping in view the fact that the accused had paid the entire amount, not only the cheque amount, but, even the compensation amount, it is clear that the accused had made the full and final settlement of the claim. As a sequel the revision petition is allowed and the petitioner is ordered to be acquitted. 7. The order dated 05.10.2024, passed by the learned trial Court, which has been affirmed by the learned Appellate Court dated 15.01.2026, are are hereby set aside and quashed. It is however, directed that the balance amount of Rs.1,50,000/- lying in deposit before the learned trial Court shall be released to the complainant forthwith. 8. The petition is disposed of in the aforesaid terms, so also the pending application, if any. (Chirag Bhanu Singh) Judge 08.09.2026 (Ritu)