Revision petition granted due to genuine compromise, setting aside conviction under Section 138 NI Act. Financial hardship considered.

The criminal revision petition was allowed based on a genuine compromise between the parties, resulting in the setting aside of the conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881. The petitioner, facing financial hardship exacerbated by the COVID-19 pandemic, reached a settlement with the complainant for Rs.2,60,000/-, with the court waiving the 15% penalty amount. The court emphasized the compensatory nature of the offence and the importance of maintaining peace between the parties. All pending applications were disposed of accordingly.

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Issues Involved:
1. Conviction under Section 138 of the Negotiable Instruments Act, 1881.
2. Sentencing and fine imposed.
3. Compromise between the parties post-judgment.
4. Waiver of the 15% penalty amount due to financial hardship.
5. Setting aside of the conviction and sentence based on the compromise.

Detailed Analysis:

1. Conviction under Section 138 of the Negotiable Instruments Act, 1881:
The petitioner was convicted under Section 138 of the Negotiable Instruments Act, 1881, due to the dishonour of a cheque dated 23.7.2013 for Rs.70,000/- issued in favour of the complainant. The cheque was dishonoured with the remarks 'insufficient funds'. After giving the statutory notice and receiving no payment, the complainant filed a complaint under Section 138 of the Act.

2. Sentencing and Fine Imposed:
The trial court sentenced the petitioner to two years of rigorous imprisonment and imposed a fine of Rs.2000/-, with an additional one month of simple imprisonment in default of payment of the fine. The Additional Sessions Judge, Ludhiana, upheld this conviction and sentence on 17.3.2022.

3. Compromise Between the Parties Post-Judgment:
After the judgments, a compromise was reached on 30.4.2022, wherein the petitioner agreed to pay Rs.2,60,000/- to the complainant to settle the matter. The compromise was genuine and bona fide, entered into without coercion or undue influence. The complainant received Rs.60,000/- in cash and was to receive the remaining Rs.2,00,000/- via a bank draft.

4. Waiver of the 15% Penalty Amount Due to Financial Hardship:
The petitioner claimed inability to pay 15% of the cheque amount due to financial hardship exacerbated by the COVID-19 pandemic, which had severely impacted his tent business. The complainant acknowledged the petitioner's financial condition and agreed to settle for Rs.2,60,000/-. The court considered this financial hardship and waived the 15% penalty amount, citing similar precedents from the Supreme Court and a coordinate bench of the High Court.

5. Setting Aside of the Conviction and Sentence Based on the Compromise:
The court noted that the compromise would maintain peace and harmony between the parties. Given the compensatory nature of the offence under Section 138, the court allowed the criminal revision petition, setting aside the judgments of conviction and sentence dated 21.4.2017 and 17.3.2022. The court confirmed that the draft of Rs.2,00,000/- was handed over to the complainant in court, finalizing the settlement.

Conclusion:
The criminal revision petition was allowed based on the genuine compromise between the parties. The court set aside the conviction and sentence, acknowledging the petitioner's financial hardship and the mutual agreement to settle the matter for Rs.2,60,000/-. All pending miscellaneous applications were disposed of in light of this judgment.

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