Gilu @ Gulab Chand Vs State of Hp and Another — Cheque Dishonour | Himachal Pradesh HC (2026)

Gilu @ Gulab Chand Vs State of Hp and Another — Cheque Dishonour | Himachal Pradesh HC (2026)

What the court decided

AI extract

Outcome

Petition allowed: judgment of conviction and order of sentence dated 09.09.2022 (JMFC Manali), affirmed by Sessions Judge Kullu on 25.05.2023 and modified in 2025:HHC:10809, quashed as per the compromise; Rs. 3,25,000/- deposit before the JMFC to be disbursed to respondent No.2/complainant; petition and pending miscellaneous application(s) disposed of.

Issue for consideration

Whether, on the compromise effected between the parties in this Section 138 NI Act matter, the judgment of conviction and order of sentence dated 09.09.2022 (affirmed on 25.05.2023 and modified in 2025:HHC:10809) should be quashed under Section 528 BNSS even though the conviction has attained finality and no proceedings are pending. +1 more

Court's answer

In view of the binding precedent of this Court (Chune Ram vs. Brikam Chand, 2025:HHC:38122), the present petition is allowed and the judgment of conviction and order of sentence dated 09.09.2022 passed by the learned Judicial Magistrate First Class, Manali, District Kullu, as affirmed by the Ld. Sessions Judge, Kullu on 25.05.2023 and modified by this Court in Gillu @ Gulab Chand Vs. Krishna Devi 2025:HHC:10809, are ordered to be quashed as per the compromise effected between the parties.

Ratio / Principle

Since no other amount has been deposited, the amount of Rs. 3,25,000/- deposited before the learned Judicial Magistrate First Class, Manali, District Kullu is ordered to be disbursed to respondent No.2/complainant by remitting the same to her savings bank account on furnishing of the bank account details, if not furnished earlier.

Detailed headnote1 paragraphs

Cr. MMO No. 590 of 2025, decided 23.04.2026 (Rakesh Kainthla, Judge): In a Section 138 Negotiable Instruments Act matter compromised between the parties, and relying on the Division Bench precedent in Chune Ram vs. Brikam Chand, 2025:HHC:38122 (High Court may quash a conviction even after it has attained finality, with no proceedings pending, under Section 528 BNSS), the judgment of conviction and order of sentence dated 09.09.2022 of the learned Judicial Magistrate First Class, Manali, District Kullu — affirmed by the Ld. Sessions Judge, Kullu on 25.05.2023 and modified in Gillu @ Gulab Chand Vs. Krishna Devi, 2025:HHC:10809 — were ordered to be quashed as per the compromise. A receipt of Rs. 45,000/- (7.5% of the Rs. 6,00,000/- cheque amount) was placed on record; the Rs. 3,25,000/- deposited before the JMFC, Manali was ordered disbursed to respondent No.2/complainant; the petition and pending miscellaneous applications were disposed of.

Gilu @ Gulab Chand Vs. State of H.P. & Anr.

Cr. MMO No. 590 of 2025

23.04.2026 Present : Mr. Rajesh Mandhotra, Advocate for the petitioner.

Mr. Lokender Kutlehria, Additional Advocate General, for respondents No.1/State.

Mr. Suresh Singh Saini, Advocate, for respondent No.2.

A receipt of ₹45,000/- being the 7.5% of the cheque amount of ₹6,00,000/- has been placed on record. Learned counsel for respondent No.2/complainant, under instructions, submits that the matter has been compromised between the parties and he has no objection in case the present application is allowed.

Hon’ble Division Bench of this Court held in Chune Ram vs. Brikam Chand, 2025:HHC:38122 that the High Court can quash conviction even after it has attained finality and even when no proceedings are pending before any Court while exercising jurisdiction under Section 528 of Bhartiya Nagrik Suraksha Sanhita (BNSS) in cases under Section 138 of Negotiable Instruments Act based on the compromise.

Therefore, in view of the binding precedent of this Court, the present petition is allowed, judgment of conviction and order of sentence dated 09.09.2022 passed

by learned Judicial Magistrate First Class, Manali, District Kullu as afÏrmed by Ld. Sessions Judge, Kullu, District Kullu on 25.05.2023 and modified by this Court in Gillu @ Gulab Chand Vs. Krishna Devi 2025:HHC:10809 are ordered to be quashed as per the compromise effected between the parties.

It has been submitted that an amount of ₹3,25,000/- has been deposited before the learned Judicial Magistrate, First Class, Manali, District Kullu, H.P., which are to be disbursed to respondent No.2/complainant, as per the compromise.

It has been stated that no other amount has been deposited. Hence, it is ordered that the amount of ₹3,25,000/- deposited before the learned Judicial Magistrate, First Class, Manali, District Kullu be disbursed to respondent No.2/complainant by remitting the same to her savings bank account on furnishing of the bank account details, if not furnished earlier.

In view of the above, the present petition is disposed of, so also the pending miscellaneous application(s), if any .

23^rd April, 2026 (Kiran)

(Rakesh Kainthla) Judge