Himachal Pradesh High Court
Sita Ram vs Baldev Chand on 24 February, 2026
.
Sita Ram versus Baldev Chand
Cr. M.P. No.181/2026 in
Cr. Revision No. 797/2024
of
Reserved on: 09.01.2026
24.02.2026 Present: Mr G.R. Palsra, Advocate, for the applicant.
rtMr H.S. Rangra, Advocate, for the
respondent.
The applicant/accused was convicted by
learned Additional Chief Judicial Magistrate, Court No.1,
Mandi, District Mandi, H.P for the commission of an
offence punishable under Section 138 of Negotiable
Instruments Act, 1881 (in short, ‘NI Act‘) and sentenced to
undergo simple imprisonment for a period of 04 months,
pay a compensation of ₹5,00,000/- (Rupees Five Lakh
only) and in default of payment of compensation, to
undergo further simple imprisonment for one month vide
judgment and order dated 02.07.2024 passed in Criminal
Complaint No. 330-III-/18/15. The applicant/accused filed
an appeal, which was registered as Cr. Appeal No. 113 of
2024 titled Sita Ram versus Baldev Chand, and was
dismissed by the learned Sessions Judge, Mandi, District
Mandi, H.P., on 08.11.2024. He preferred a revision before
this Court, which was registered as Cr. Revision No.
797/2024, and was dismissed on 12.11.2025.
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The applicant/accused has now filed an
application under Section 147 of the NI Act for granting
of
permission to compound the offence based on a
compromise effected between the parties.
rtThe Hon’ble Division Bench of this Court held
in Chune Ram vs. Brikam Chand, 2025:HHC:38122 , that
the Court can quash the conviction even after its
finalisation in criminal revision based on the compromise
effected between the parties. This judgment is binding
upon this Court.
It was submitted that the cheque amount of
7.5% has to be deposited as per the judgment of Hon’ble
Supreme Court in Sanjabij Tari v. Kishore S. Borcar,
(2025) 259 Comp Cas 685: 2025 SCC OnLine SC 2069 . This
submission is not acceptable because the judgment does
not deal with a situation where the matter has been
decided by the High Court, and the matter has been
compromised after the decision of the Court. Hon’ble
Supreme Court held that 7.5% of the cheque amount has
to be deposited when the matter is pending before the
High Court. Therefore, the submission that 7.5% of the
cheque amount has to be deposited cannot be accepted.
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The applicant/accused had unsuccessfully
contested the matter before the learned Trial Court,
learned Appellate Court and this Court. He has
of
compromised the matter after the decision of this Court.
This Court invested the time in going through the case
rt
file, hearing the arguments and adjudicating the pleas
taken by the parties. This time could have been utilised in
the disposal of other matters which are pending before
this Court. A tendency has grown amongst the litigants to
challenge the judgments of the learned Courts below
before this Court, inviting the findings on merits, and
compromise the matter after the findings go against
them. This tendency is taking up the valuable judicial
time of the Court leading to the increase in the pendency
of the cases. This tendency has to be discouraged with
heavy hands to utilise the precious time of the Court to
adjudicate other pending matters. Hence, it is considered
appropriate that 15% of the cheque amount as proposed in
Damodar S. Prabhu v. Sayed Babalal H. [(2010) 159 Comp
Cas 1 (SC); (2010) 5 SCC 663; (2010) 2 SCC (Civ) 520;
(2010) 2 SCC (Cri) 1328; 2010 SCC OnLine SC 546 be
imposed as costs to dissuade the litigants from taking a
chance by arguing the matter on merits and thereafter
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compromising the matter by paying the nominal amount.
Therefore, it is ordered that 15 % of the cheque amount
of
would be deposited before the H.P. State Legal Services
Authority, after which the plea for composition would be
rt
considered by the Court. Let the amount be deposited, and
the matter be listed thereafter.
(Rakesh Kainthla)
24 February, 2026 Judge
(yogesh)
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