2026:UHC:4466 SL. No. Date Office Notes, reports, orders or proceedings or directions and Registrar’s order with Signatures COURT’S OR JUDGE’S ORDERS C528/1228/2026 Hon’ble Alok Mahra, J. Mr. Arjun Arora proxy counsel for Mr. Abhishek Verma, learned counsel for the applicant. 2. Mr. Siddhartha Bisht, learned A.G.A. for the State. 3. Mr. Yuvraj Bhatnagar, learned counsel for respondent no.2/complainant. 4. Present C-528 application has been filed seeking quashing of the judgment and order dated 12.04.2024 passed by the learned 1st Additional Sessions Judge, Kashipur, District Udham Singh Nagar in Criminal Appeal No. 04 of 2024, as well as the judgment and order dated 11.12.2023 passed by the learned Judicial Magistrate/3rd Additional Civil Judge (Junior Division), Kashipur, District Udham Singh Nagar in Criminal Complaint Case No. 7414 of 2018 under Section 138 of the Negotiable Instruments Act, on the basis of a compromise entered into between the parties. 5. Learned counsel for the applicant would submit that the cheque in question, which is the subject matter of the proceedings, was issued in connection with a monetary transaction 2026:UHC:4466 between the parties; that, the dispute has now been amicably settled and the respondent no. 2/complainant has received the entire cheque amount; that, since no grievance survives, the complainant does not wish to continue with the criminal proceedings against the applicant. 6. A joint compounding application along with affidavits of the parties has been filed before this Court stating that the dispute has been resolved amicably and that the complainant does not wish to prosecute the applicant any further. The applicant and respondent no. 2 are present before this Court and have been duly identified by their respective counsel. On being questioned by the Court, respondent no. 2 stated that the compromise has been entered into voluntarily and without any pressure, coercion or undue influence and he has received the entire cheque amount and has no objection if the proceedings are quashed. 7. This Court has considered the submissions advanced by learned counsel for the parties and perused the record. The dispute arises out of a monetary transaction. The parties have now settled their differences amicably and the complainant has categorically stated that he does not wish to pursue the matter any further. 8. It is well settled that offences 2026:UHC:4466 under Section 138 of the Negotiable Instruments Act are compoundable in nature. The primary object of the provision is to ensure payment of the cheque amount. Once the complainant has received the entire amount and the parties have settled the dispute, continuation of criminal proceedings would serve no useful purpose. 9. The Hon'ble Supreme Court in Damodar S. Prabhu v. Sayed Babalal H. and M/s Meters and Instruments Private Limited v. Kanchan Mehta has encouraged compounding of offences under Section 138 of the Negotiable Instruments Act so as to promote settlement of commercial disputes and reduce unnecessary litigation. 10. In the present case, the complainant has received the entire cheque amount and has voluntarily agreed to compound the offence. Therefore, this Court is satisfied that the compromise is genuine and has been entered into of the free will of the parties. 11. Accordingly, the compounding application is allowed. 12. Consequently, the present C-528 application is allowed. The judgment and order dated 12.04.2024 passed by the learned 1st Additional Sessions Judge, Kashipur, District Udham Singh Nagar in Criminal Appeal No. 04 of 2024, as well as the judgment and 2026:UHC:4466 order dated 11.12.2023 passed by the learned Judicial Magistrate/3rd Additional Civil Judge (Junior Division), Kashipur, District Udham Singh Nagar in Criminal Complaint Case No. 7414 of 2018 under Section 138 of the Negotiable Instruments Act, are hereby set aside and the proceedings are quashed on the basis of the compromise arrived at between the parties. 13. Pending applications, if any, shall stand disposed of accordingly. (Alok Mahra, J.) 03.06.2026 Mamta