2026:UHC:4401 SL. No. Date Office Notes, reports, orders or proceedings or directions and Registrar’s order with Signatures COURT’S OR JUDGE’S ORDERS C528 No.1136 of 2026 Hon’ble Alok Mahra, J. Mr. Mohit Kumar Kashyap, Advocate for the applicant. Mr. Anuj Singh Kunjwal, Advocate for the respondent. 2. Present C-528 application is filed with the prayer to set-aside/quash the judgment & order dated 22.04.2024 passed by learned Judicial Magistrate, Kashipur, District Udham Singh Nagar in Criminal Case No.771 of 2019. Prayer has also been made to quash the judgment & order dated 14.02.2025 passed by learned 1st Additional Sessions Judge, Kashipur, District Udham Singh Nagar in Criminal Appeal No.47 of 2024, on the basis of compromise between the parties. 3. Respondent filed a criminal case against the applicant under Section 138 of N.I. Act alleging that certain business transactions had taken place between the parties and, in discharge of alleged liability, applicant had issued cheque amounting to ₹5,50,000/- in favour of the respondent, which upon presentation was dishonoured. Upon completion of investigation, charge- sheet came to be submitted against the applicant. Subsequently, learned trial Court, vide judgment and order dated 22.04.2024, convicted the applicant for the offences punishable under Section 138 of N.I. Act and awarded sentence of simple imprisonment for a period of three months along with a fine of ₹6,40,000/-, out of which 6,30,000/- was directed to be paid to the respondent and 10,000/- was to be deposited in State Treasury, and in default of payment of fine, directed the applicant to undergo an additional simple imprisonment 2026:UHC:4401 of one month. Aggrieved by the aforesaid judgment and order dated 22.04.2024, the applicant preferred Criminal Appeal No.47 of 2024, which was dismissed vide order dated 14.02.2025 passed by learned Ist Additional Sessions Judge, Kashipur, District Udham Singh Nagar. 4. A Compounding Application (I.A. No. 1 of 2026) has been filed jointly by the parties seeking permission of this Court to compound the offence under Section 138 of the Negotiable Instruments Act, 1881, in view of the amicable settlement arrived at between them. 5. Applicant as well as the respondent are present before the Court and have been duly identified by their respective learned counsel. The respondent has also filed an affidavit in support of the compounding application affirming that the dispute between the parties has been amicably resolved. 6. It is jointly submitted that all disputes, differences, and claims arising out of the subject matter of the proceedings have been amicably settled between the parties. The respondent submits that he has received a sum of ₹6,30,000/- from the applicant towards full and final settlement of his claim. It is further submitted that the amount of ₹10,000/-, which was directed by the learned trial Court to be deposited in the State Treasury, has not yet been deposited by the applicant. Learned counsel for the applicant, on instructions, undertakes that the said amount shall be deposited within one week from today. 7. Respondent further states that, in view of the settlement arrived at between the parties and receipt of the agreed amount, he does not wish to pursue the criminal proceedings any further and has no objection if the conviction, sentence and consequential proceedings arising therefrom 2026:UHC:4401 are set aside and the offence is permitted to be compounded in accordance with law. 8. Learned State Counsel vehemently opposed the compounding application. 9. In view of the fact that the parties have voluntarily, amicably, and without any coercion or undue influence settled their dispute, the compounding application is allowed. Consequently, the offences under Section 138 of the Negotiable Instruments Act, 1881 are permitted to be compounded in terms of Section 147 of the said Act. 10. Accordingly, the impugned judgment and orders dated 22.04.2024 and 14.02.2025, are hereby quashed. However, the present order is subject to the condition that the applicant shall deposit a cost of ₹10,000/- with the Advocates Welfare Fund maintained by the High Court Bar Association within a period of one week from today. In case of failure to comply with the aforesaid condition within the stipulated time, this order shall stand recalled and the benefit of compounding shall not enure to the applicant. (Alok Mahra, J.) 02.06.2026 Arpan ARPAN JAISWAL Digitally signed by ARPAN JAISWAL DN: c=IN, o=HIGH COURT OF UTTARAKHAND, ou=HIGH COURT OF UTTARAKHAND, 2.5.4.20=eabb68a3895e41937c266c23964c0485365445e3a2 0dddb7393398f9fe45ba3e, postalCode=263001, st=UTTARAKHAND, serialNumber=060FC17022BEAE3DE215D68D9D454C5109C B987446351E4DF04AADAA2C2CEA66, cn=ARPAN JAISWAL Date: 2026.06.02 16:09:09 +05'30'