[S.147 Negotiable Instruments Act] Offence Can Be Compounded Post-Conviction For Cheque Dishonour: Himachal Pradesh High Court

The observations were made by Justice Sandeep Sharma while hearing a plea in terms of which the petitioner/accused had prayed for compounding of the offence under S.147 of the Negotiable Instruments Act on the ground that the petitioner/accused had compromised the matter with the respondent and paid the entire due amount.

On account of the settlement arrived, the accused had approached the court under S.482 CrPC, praying therein for compounding of the offence under Section 147 of the Act.

The Non-applicant on his part fairly stated that since entire amount of compensation has been deposited by the accused, he has no objection in case prayer of the accused for compounding of the offence and thereafter his acquittal is accepted.

After anxiously examining the record the bench noted that the petitioner/accused had already been held guilty of having committed offence punishable under S.138 of the Act and convicted and sentenced him to undergo simple imprisonment for six months and to pay compensation to the tune of Rs.1.20 Lakh to the complainant.

Bench also noted that the Petitioner/Accused had filed an appeal but the same was also dismissed, after which he approached the High Court court under Ss. 397 and 401 CrPC by way of Cr. Revision, but the same was also dismissed on merit.

The moot question that fell for adjudication was as to whether after upholding the judgments of conviction and order of sentence passed by courts below, High Court could proceed to compound the offence or not?

Adjudicating upon the matter Justice Sharma observed that the court can proceed to compound the offence punishable under Section 138 of the Act, after recording of conviction and sentence.

Relying on the apex court judgment in Damodar S. Prabhu v. Sayed Babalal H. (2010), the bench said that notwithstanding the fact that a judgment of conviction and order of sentence recorded by trial Court has been further upheld by this Court but Section 147 of the Act sufficiently empowers this Court to compound the offence after recording of conviction and hence there appears to be no impediment in accepting the prayer made in the application.

Highlighting the compromise arrived by the parties in the matter, Justice Sharma observed that the respondent is no more interested in sending the petitioner/accused behind the bars in terms of judgment of conviction and order of sentence recorded by the Court below.

Accordingly the bench recalled the order passed earlier by it in Cr. Revision and ordered the matter to be compounded inter se parties. Impugned judgments of conviction and order of sentence passed by both the Courts below was quashed and set aside.

Case Title: Naresh Kumar Vs Trilok Chand.

Citation: 2023 LiveLaw (HP) 9

Click Here To Read/Download Order