Sat Pal Vs Ramesh Kumar — Cheque Dishonour | Punjab & Haryana HC (2026)

Sat Pal Vs Ramesh Kumar — Cheque Dishonour | Punjab & Haryana HC (2026)

What the court decided

AI extract

Outcome

Revision petition allowed: judgment of conviction dated 26.09.2006 (JMIC, Ferozepur) and judgment dated 24.10.2007 (Sessions Judge, Ferozepur in appeal) quashed and set aside; petitioner acquitted of the charges; amount of fine forfeited to State; bail bonds and surety bonds discharged. Conditional on petitioner depositing 7.5% of the cheque amount with the State Legal Services Authority, Punjab by 30.04.2026, failing which the order shall stand recalled automatically under Section 403 BNSS, 2023. All pending applications closed.

Issue for consideration

Whether, after the parties have settled the matter and the entire money has been paid, the judgments of conviction and sentence (affirmed on appeal) can be set aside and the petitioner acquitted, given that Section 147 NI Act makes the Section 138 offence compoundable without permission of the Court.

Court's answer

Under Section 147 of the Negotiable Instruments Act, an offence punishable under Section 138 NI Act is compoundable and explicitly no permission of the Court is required for the compromise; accordingly, even if the petitioner-accused has been convicted and the appeal against conviction has been dismissed by the Sessions Court, once the parties have settled the matter, this Court has no authority to refuse to accept such compromise.

Detailed headnote1 paragraphs

Punjab & Haryana High Court at Chandigarh (Anoop Chitkara, J.), CRR-2056-2007, decided 11.03.2026 — Sat Pal v. Ramesh Kumar. The petitioner, convicted under Section 138/142 NI Act r/w 420 IPC (RI one year + fine Rs.5000/-) with the conviction affirmed by the Sessions Judge, Ferozepur on 24.10.2007, filed a revision under Section 401 CrPC after the matter was settled and the entire money paid; the respondent raised no objection. Holding (ratio): Section 147 NI Act makes the Section 138 offence compoundable, expressly requiring no permission of the Court (described as almost a replica of Section 359 BNSS, 2023 / erstwhile Section 320 CrPC); once the parties have settled, the Court has no authority to refuse to accept the compromise even after conviction and dismissal of the appeal. Petition allowed: both judgments quashed and set aside, petitioner acquitted, fine forfeited to State, bonds discharged — conditioned on deposit of 7.5% of the cheque amount with the State Legal Services Authority, Punjab by 30.04.2026, failing which the order stands automatically recalled under Section 403 BNSS, 2023. Not reportable.

CRR-2056-2007

110 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CRR-2056-2007 Date of Decision: 11.03.2026

Sat Pal ...Petitioner

Versus

Ramesh Kumar …Respondent

CORAM: HON'BLE MR. JUSTICE ANOOP CHITKARA

Present: Mr. Vinod Khunger, Advocate for the petitioner.

Mr. Paras Khindri, Advocate for the respondent.

ANOOP CHITKARA, J.

Criminal	No. 159-2, under Section 138/142 of the Negotiable Instruments Act r/w
Complaint	420 IPC, District Ferozepur Date of Decision: 26.09.2006
Criminal	No. 59 of 2006, Sessions Judge, Ferozepur
Appeal	Date of Decision: 24.10.2007

Seeking setting aside of impugned orders dated 26.09.2006 and 24.10.2007 passed by JMIC, Ferozepur and Sessions Judge, Ferozepur respectively, the petitioner has come up before this Court by filing the present revision petition under Section 401 CrPC.

Petitioner was convicted and sentenced RI for one year and to pay fine of Rs.5000/- by the trial Court and the said judgment stands affirmed by the Appellate Court.

Counsel for the petitioner submits that the matter has been settled and the entire money has been paid. Counsel for the respondent does not dispute the aforesaid fact and submits that he has no objection if the judgment of conviction and order of sentence is set aside.

Section 147 of Negotiable Instruments Act makes an offence punishable under Section 138 of NI Act as compoundable which is almost a replica of Section 359 BNSS, 2023 (erstwhile Section 320 CrPC) and explicitly no permission of the Court is required for compromise of offence under Section 138 NI Act. Even if the petitioneraccused has been convicted and the appeal filed against conviction has been dismissed by the Sessions Court, once the parties had settled the matter, this Court has no authority to refuse to accept such compromise.

JYOTI SHARMA 2026.03.17 17:11 I attest to the accuracy and authenticity of this order/judgment High Court, Sector 1, Chandigarh

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CRR-2056-2007

In the above background, present petition is allowed. The judgment of conviction 26.09.2006 passed by JMIC, Ferozepur and similarly the judgment dated 24.10.2007 passed by Sessions Judge, Ferozepur in appeal are quashed and set aside and petitioner is acquitted of the charges. Amount of fine forfeited to State. Bail bonds and surety bonds, if any furnished shall stand discharged. This order is subject to the condition that petitioner shall deposit 7.5% of the cheque amount with the State Legal Services Authority, Punjab by 30.04.2026. It is clarified that this order shall stand recalled automatically invoking provisions of Section 403 BNSS, 2023, if compliance is not made. All pending application(s), if any, stand closed.

(ANOOP CHITKARA) JUDGE

11.03.2026 Jyoti Sharma

Whether speaking/reasoned: Yes Whether reportable: No.

JYOTI SHARMA 2026.03.17 17:11 I attest to the accuracy and authenticity of this order/judgment High Court, Sector 1, Chandigarh

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