M/S Verma Electricals and Sons v. Rajdhani Electricles
Compounding of offence under Section 138 NI Act – settlement between parties
Case brief
What is this about?
Himachal Pradesh High Court, Criminal Revision No. 351 of 2024 (decided 09.10.2025, Virender Singh, J.): revision allowed, permitting compounding of Section 138 NI Act offence on settlement between M/s Verma Electricals & Sons and Rajdhani Electricals regarding Cheque No.306870 dated 13.09.2017; conviction dated 22.12.2023 and sentence dated 29.12.2023 (simple imprisonment six months, compensation Rs.2,20,000/-) set aside and accused acquitted after appeal dismissal dated 12.03.2024 in Criminal Appeal No.10-S/10 of 2024; conditional acquittal subject to 15% of cheque amount as compounding fee within three months (split between H.P. State Legal Services Authority and Chief Justice Disaster Relief Fund, 2025); non-deposit revives conviction and sentence; Rs.66,000/- deposited before trial Court released to complainant; Cr.MP No.4448 of 2025 allowed.
What did the court decide?
Revision petition allowed; parties permitted to compound the offence under Section 138 NI Act; judgment of conviction dated 22.12.2023 and order of sentence dated 29.12.2023 (affirmed by the Appellate Court) set aside; petitioner acquitted; personal and surety bonds discharged; amount deposited before the trial Court released to the complainant; pending miscellaneous applications disposed of — all subject to deposit of 15% of the cheque amount as compounding fee within three months (50% to Member Secretary, H.P. State Legal Services Authority, Shimla; 50% to Chief Justice Disaster Relief Fund, 2025), failing which the petition shall be deemed dismissed and the conviction and sentence revived, with the accused to surrender before the trial Court.