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Punjab-Haryana High Court
Jia Lal Alias Jiya Lal vs Azad Singh Since Deceased Thr Her Lr And ... on 29 April, 2026
Author: Anoop Chitkara
Bench: Anoop Chitkara
CRR-1070-2026 (O&M)
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
CRR-1070-2026 (O&M)
Jia Lal @ Jiya Lal .......Petitioner(s).
Versus
Azad Singh(since deceased) through LR & another .......Respondent(s).
Judgment Judgment Operative Part Uploaded on
reserved on pronounced on Pronounced or full
23.04.2026 29.04.2026 Fully pronounced 29.04.2026
CORAM: HON'BLE MR. JUSTICE ANOOP CHITKARA,
Present: Mr. Ravinder Bangar, Advocate
for the petitioner(s).
Ms. Veenus Malik, Advocate for the complainant.
Mr. Shiva Khurmi, DAG, Haryana.
***
ANOOP CHITKARA, J.
Criminal NACT/52/2015
Complaint HRAMA10003232015
Date of decision: 10/13.01.2020
Criminal CIS No.13 of 2020-CRA
Appeal CNR No.HRAM010009382020
Date of decision: 02.04.2026
Convict's Penal provision Sentence
name
Jia Lal Section 138 of the Simple imprisonment for two years and to
Negotiable Instruments pay compensation of Rs.8,00,000/- to the
Act, 1881 complainant and in default, to further
undergo simple imprisonment for three
months.
1. This revision petition has arisen out of judgment dated 02.04.2026
passed by Additional Sessions Judge, Ambala, vide which the judgment of conviction
2026.04.29 13:19
I attest to the accuracy and integrity
of this order/judgment
Punjab & Haryana High Court,
Chandigarh
CRR-1070-2026 (O&M)
dated 10.01.2020 and order of sentence dated 13.01.2020 passed by Sub Divisional
Judicial Magistrate, Naraingarh, have been upheld, whereby the petitioner-accused was
held guilty for offence under Section 138 of Negotiable Instruments Act, 1881 and was
convicted and sentenced, as stated above.
2. At the outset, counsel for the respondent-complainant has submitted
that she has instructions to state that the matter has been settled between the parties and
they have received the entire amount of compensation, as per the compromise deed
dated 22.04.2026, which she has handed over in Court and therefore, prayed for
compounding of offence under Section 138 of N.I. Act and acceptance of the revision
petition. The compromise deed is taken on record.
3. A perusal of the compromise deed shows that the matter stands settled
between the parties, voluntarily without any pressure or coercion or undue influence.
The complainant is stated to have received the entire due amount and nothing remains
to be paid and the complainant has no objection in case the present revision petition is
allowed and the petitioner-convict is acquitted in this case.
4. I have heard counsel for the parties and have perused the relevant
material placed on record.
5. As submitted by counsel for the complainant, a compromise has been
effected and full and final settlement has taken place between the parties and the
disputed cheque(s) amount/compensation amount has already been paid by the
petitioner to respondent-complainant and now, nothing is due towards him.
6. The object and purpose of proceeding initiated under the Negotiable
Instruments Act is to provide a compensatory mechanism for expeditious recovery of
money and not just punishing the offender, which is a secondary concern.
7. The Hon'ble Supreme Court in Meters and Instruments Private
Limited and another Vs. Kanchan Mehta (2018) 1 SCC 560, has held as under:-
"7. This Court has noted that the object of the statute was to facilitate
smooth functioning of business transactions. The provision is necessary
as in many transactions' cheques were issued merely as a device
to defraud the creditors. Dishonour of cheque causes incalculable
loss, injury and inconvenience to the Vide the Banking, Public
2026.04.29 13:19
I attest to the accuracy and integrity
of this order/judgment
Punjab & Haryana High Court,
Chandigarh
CRR-1070-2026 (O&M)
Financial Institutions and Negotiable Instruments Laws
(Amendment) Act, 1988 payee and credibility of business transactions
suffers a setback. At the same time, it was also noted that nature of
offence under Section 138 primarily related to a civil wrong and the
2002 amendment specifically made it compoundable......
xxxx xxxx xxxx
18.2. The object of the provision being primarily compensatory,
punitive element being mainly with the object of enforcing the
compensatory element, compounding at the initial stage has to be
encouraged but is not debarred at later stage subject to appropriate
compensation as may be found acceptable to the parties or the court.
18.3. Though compounding requires consent of both parties,
even in absence of such consent, the court, in the interests of justice, on
being satisfied that the complainant has been duly compensated, can in
its discretion close the proceedings and discharge the accused."
8. Offence punishable under Section 138 of the Act is a compoundable
offence, as per Section 147 of the Negotiable Instruments Act, which is a replica of
Section 320 CrPC/359 BNSS, and as such, no permission of this Court is required to
compromise the matter. As in the present case, parties have settled their dispute with
regard to dishonour of cheque in question. In the given circumstances, the petitioner
deserves to be acquitted of the offence punishable under Section 138 of the Act, by
compounding the same.
9. For the foregoing reasons, the above-mentioned petition is allowed and the
impugned judgment of conviction dated 10.01.2020 and order of sentence dated
13.01.2020 passed by learned Sub Divisional Judicial Magistrate, Ambala as well as the
judgment in appeal dated 02.04.2026 passed by learned Additional Sessions Judge, Ambala
are set aside and the petitioner is acquitted. Bail bond(s)/suety bond(s), if any furnished,
shall stand discharged. All pending CRM(s), if any, are also disposed of accordingly.
(ANOOP CHITKARA)
29.04.2026 JUDGE
Ak
Whether speaking/reasoned : Yes
Whether reportable : No
2026.04.29 13:19
I attest to the accuracy and integrity
of this order/judgment
Punjab & Haryana High Court,
Chandigarh
