Iqbal Saini v. M/S Harjeet Singh Raghuvansh Singh and Another

INoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAoATo CHANDIGARHo o o o 261o o o o o o CRRoNos.1973,o1979oo o o o o o o &o1984oofo2025o(O&M)o o o o o o o Dateoofodecision:o12.11.2025o IqbaloSainioo o o o o o o o o o o o ....Petitionero V/so M/soHarjeetoSinghoRaghuvanshoSinghoandoanotheroo o o o o o o o o o ....Respondentso o CORAM:oo HON'BLEoMR.oJUSTICEoSUMEEToGOELo Present:oo Mr.oDeepakoKumaroBartia,oAdvocateo forotheopetitioner(s).o o o Mr.oJarnailoSinghoSaneta,oAdvocateofororespondentoNo.1o o o o Mr.oDeepakoKumaroGrewal,oDAG,oHaryanao o o fororespondentoNo.2.o o o o o o *****o SUMEEToGOEL,oJ.o(Oral)o

1.o o Byothisocommonoorder,otheoaforesaidothreeorevisionopetitionsoi.e.o CRRoNos.1973,o1979o&o1984oofo2025,oareobeingodisposedooffotogether,oaso theosameoinvolveocommonalityoofofactsoandoissue(s).o o o Forotheosakeoofoconvenience,otheofactsoareobeingodrawnooutofromo CRR-1973-2025o(titledoasoIqbaloSainioVs.oM/soHarjeetoSinghoRaghuvansho Singhoandoanother).o

2.o o Theo presento criminalo revisiono petitionso haveo beeno filedo impugningotheojudgmentodatedo31.05.2025opassedobyotheolearnedoAdditionalo SessionsoJudge,oKurukshetrao&otheojudgmentoandoorderoofosentenceodatedo st07.08.2023/10.08.2023opassedobyoJudicialoMagistrateo1 oClass,oKurukshetrao wherebyotheopetitionerohasobeenoconvictedoandosentencedoforooffenceoundero NAVEEN NAGPAL Sectiono138oofoNegotiableoInstrumentsoAct,o1881.oo CRRoNos.1973,o1979o&o1984o(O&M)o o o o P a g e o?o2o o

3.o o Learnedocounseloforotheopetitionerohasosubmittedothatoduringotheo pendencyoofoproceedings,otheopetitioneroandotheocomplainantohaveoenteredo intooaosettlement/compromiseodatedo07.11.2025obeforeotheoMediationoando ConciliationoCentreoofothisoCourt.oLearnedocounseloforotheopetitionerohaso furthero submittedo thato sinceo theo partieso haveo amicablyo settledo theiro dispute(s),otheomatteromayobeocompoundedoandotheopetitionerobeoacquitted.ooo

4.o o LearnedocounseloappearingoforotheorespondentoNo.1ohasoratifiedo theofactumoofocompromise/settlementohavingobeenoarrivedoatobetweenotheo partieso ando haso furthero vouchedo theo genuinenesso ofo theo compromise/settlementodatedo07.11.2025ostatedotoobeoarrivedobetweenotheo partieso beforeo theo Mediationo ando Conciliationo Centreo ofo thiso Court.o Accordingly,o heo haso iteratedo thato theo respondent-complainanto haso noo objectiono ino caseo theo offenceo iso permittedo too beo compoundedo ando theo petitioneroisoorderedotoobeoacquitted.oo

5.o o Io haveo heardo learnedo counselo foro theo rivalo partieso ando haveo perusedotheoavailableorecord.oo

6.o o Itowouldobeoappositeotooreferohereinotooaojudgmentopassedobyo threeo Judgeo Bencho ofo theo Hon'bleo Supremeo Courto titledo aso Damodaro S.o Prabhuovs.oSayedoBabalaloH.,oAIRo2010(SC)o1907,orelevantowhereoforeadso thus:o o "15.o Witho regardo too theo progressiono ofo litigationo ino chequeo bouncingo cases,o theo learnedo Attorneyo Generalo haso urgedo thiso Courto too frameo guidelinesoforoaogradedoschemeoofoimposingocostsoonopartiesowhooundulyo delayocompoundingoofotheooffence.oItowasosubmittedothatotheorequiremento ofodepositoofotheocostsowilloactoasoaodeterrentoforodelayedocomposition,o sinceoatopresent,ofreeoandoeasyocompoundingoofooffencesoatoanyostage,o howeverobelated,ogivesoanoincentiveotootheodraweroofotheochequeotoodelayo settlingotheocasesoforoyears.oAnoapplicationoforocompoundingomadeoaftero severalo yearso noto onlyo resultso ino theo systemo beingo burdenedo buto theo complainanto iso alsoo deprivedo ofo effectiveo justice.o Ino viewo ofo thiso 2025.11.13 09:30 submission,oweodirectothatotheofollowingoguidelinesobeofollowed:-o CRRoNos.1973,o1979o&o1984o(O&M)o o o o P a g e o?o3o o o THEoGUIDELINESo o (i)oInotheocircumstances,oitoisoproposedoasofollows:o o (a)o Thato directionso cano beo giveno thato theo Writo ofo Summonso beo suitablyo modifiedo makingo ito clearo too theo accusedo thato heo couldo makeoanoapplicationoforocompoundingoofotheooffencesoatotheofirstooro secondohearingoofotheocaseoandothatoifosuchoanoapplicationoisomade,o compoundingomayobeoallowedobyotheocourtowithoutoimposingoanyo costsoonotheoaccused.o o (b)oIfotheoaccusedodoesonotomakeoanoapplicationoforocompoundingo aso aforesaid,o theno ifo ano applicationo foro compoundingo iso madeo beforeotheoMagistrateoatoaosubsequentostage,ocompoundingocanobeo allowedosubjectotootheoconditionothatotheoaccusedowillobeorequiredo toopayo10%oofotheochequeoamountotoobeodepositedoasoaoconditiono foro compoundingo witho theo Legalo Serviceso Authority,o oro sucho authorityoasotheoCourtodeemsofit.o o (c)oSimilarly,oifotheoapplicationoforocompoundingoisomadeobeforeo theoSessionsoCourtooroaoHighoCourtoinorevisionooroappeal,osucho compoundingomayobeoallowedoonotheoconditionothatotheoaccusedo payso15%oofotheochequeoamountobyowayoofocosts.o o (d)oFinally,oifotheoapplicationoforocompoundingoisomadeobeforeotheo SupremeoCourt,otheofigureowouldoincreaseotoo20%oofotheochequeo amount.o o Letoitoalsoobeoclarifiedothatoanyocostsoimposedoinoaccordanceowithotheseo guidelineso shouldo beo depositedo witho theo Legalo Serviceso Authorityo operatingoatotheoleveloofotheoCourtobeforeowhichocompoundingotakesoplace.o Foroinstance,oinocaseoofocompoundingoduringotheopendencyoofoproceedingso beforeoaoMagistrate'soCourtooroaoCourtoofoSessions,osuchocostsoshouldobeo depositedo witho theo Districto Legalo Serviceso Authority.o Likewise,o costso imposedoinoconnectionowithocompositionobeforeotheoHighoCourtoshouldobeo depositedowithotheoStateoLegaloServicesoAuthorityoandothoseoimposedoino connectiono witho compositiono beforeo theo Supremeo Courto shouldo beo depositedowithotheoNationaloLegaloServicesoAuthority.o o xxxo o o xxxo o o xxxo o o xxxo o xxxo o o xxxo o o xxxo o o xxxo o 17.oo Weoareoalsooconsciousoofotheoviewothatotheojudicialoendorsementoofo theo aboveo quotedo guidelineso couldo beo seeno asoano acto ofo judicialo law-makingoandothereforeoanointrusionointootheolegislativeodomain.oItomustobeo keptoinomindothatoSectiono147oofotheoActodoesonotocarryoanyoguidanceoono howotooproceedowithotheocompoundingoofooffencesounderotheoAct.oWeohaveo alreadyoexplainedothatotheoschemeocontemplatedounderoSectiono320oofotheo CrPCocannotobeofollowedoinotheostrictosense.oInoviewoofotheolegislativeo 2025.11.13 09:30 vacuum,oweoseeonoohurdleotootheoendorsementoofosomeosuggestionsowhicho CRRoNos.1973,o1979o&o1984o(O&M)o o o o P a g e o?o4o o haveo beeno designedo too discourageo litigantso fromo undulyo delayingo theo compositionoofotheooffenceoinocasesoinvolvingoSectiono138oofotheoAct.oTheo gradedoschemeoforoimposingocostsoisoaomeansotooencourageocompoundingo atoanoearlyostageoofolitigation.oInotheostatusoquo,ovaluableotimeoofotheoCourto isospentoonotheotrialoofotheseocasesoandotheopartiesoareonotoliableotoopayoanyo CourtofeeosinceotheoproceedingsoareogovernedobyotheoCodeoofoCriminalo Procedure,oevenothoughotheoimpactoofotheooffenceoisolargelyoconfinedotoo theoprivateoparties.oEvenothoughotheoimpositionoofocostsobyotheocompetento courtoisoaomatteroofodiscretion,otheoscaleoofocostsohasobeenosuggestedoinotheo interestoofouniformity.oTheocompetentoCourtocanoofocourseoreduceotheocostso witho regardo tootheo specifico factso ando circumstanceso ofo ao case,o whileo recordingoreasonsoinowritingoforosuchovariance.oBonaofideolitigantsoshouldo ofocourseocontestotheoproceedingsotootheirologicaloend.oEvenoinotheopast,o thisoCourtohasousedoitsopowerotoodoocompleteojusticeounderoArticleo142oofo theoConstitutionotooframeoguidelinesoinorelationotoosubject-matterowhereo thereowasoaolegislativeovacuum."o

6.1.o o FurtherotheoHon'bleoSupremeoCourtoinoaojudgmentotitledoasoM/so NewoWinoExporto&Anr.ovs.oA.oSubramaniamo2024oINSCo535o:o2024(3)o LawoHeraldo(SC)o2098,orelevantowhereoforeadsoasounder:o o "6.oo Ato thiso juncture,o weo wouldo alsoo likeo too reiterateo ao fewo wordso regardingotheoprinciplesoofocompoundingoofooffencesoinotheocontextoofoNIo Act.oItoisotoobeorememberedothatodishonouroofochequesoisoaoregulatoryo offenceowhichowasomadeoanooffenceoonlyoinoviewoofopublicointerestosoothato theoreliabilityoofotheseoinstrumentsocanobeoensured.oAolargeonumberoofo casesoinvolvingodishonouroofochequesoareopendingobeforeocourtsowhichoiso ao seriouso concerno foro ouro judicialo system.o Keepingo ino mindo thato theo 'compensatoryoaspect'ooforemedyoshallohaveopriorityooverotheo'punitiveo aspect',ocourtsoshouldoencourageocompoundingoofooffencesounderotheoNIo Actoifopartiesoareowillingotoodooso.o(See:oDamodaroS.oPrabhuov.oSayedo Babalalo H.o(2010)o 5o SCCo 663o (Parao 18),o Gimpexo Privateo Limitedo v.o Manojo Goelo(2022)o 11o SCCo 705o (Parao 29),o Meterso Ando Instrumentso PrivateoLimitedoAndoAnr.ov.oKanchanoMehtao(2018)o1oSCCo560(Parao

18.2)"o

6.2.o o Moreorecently,otheoHon'bleoSupremeoCourtoinoaojudgmentotiledo asoSanjabijoTariovs.oKishoreoS.oBorcaroandoanothero?o2025oINSCo1158,ohaso heldoasounder:o o "38.o Sinceo ao veryo largeo numbero ofo chequeo bouncingo caseso areo stillo I attest to the accuracy and pendingoandointerestoratesohaveofallenoinotheolastofewoyears,othisoCourtoiso CRRoNos.1973,o1979o&o1984o(O&M)o o o o P a g e o?o5o o ofo theo viewo thato ito iso timeo too 'revisito ando tweako theo guidelines'.o Accordingly,otheoaforesaidoguidelinesoofocompoundingoareomodifiedoaso under:-o o (a)o Ifo theo accusedo payso theo chequeo amounto beforeo recordingo ofo hiso evidenceo (namelyo defenceo evidence),o theno theo Trialo Courto mayo allowo compoundingoofotheooffenceowithoutoimposingoanyocostooropenaltyoonotheo accused.o o (b)o Ifo theo accusedo makeso theo paymento ofo theo chequeo amounto posto theo recordingoofohisoevidenceobutopriorotootheopronouncementoofojudgmentobyo theoTrialoCourt,otheoMagistrateomayoallowocompoundingoofotheooffenceoono paymentoofoadditionalo5%oofotheochequeoamountowithotheoLegaloServiceso AuthorityoorosuchootheroAuthorityoasotheoCourtodeemsofit.o o (c)oSimilarly,oifotheopaymentoofochequeoamountoisomadeobeforeotheoSessionso CourtooroaoHighoCourtoinoRevisionooroAppeal,osuchoCourtomayocompoundo theooffenceoonotheoconditionothatotheoaccusedopayso7.5%oofotheochequeo amountobyowayoofocosts.o o (d)oFinally,oifotheochequeoamountoisotenderedobeforeothisoCourt,otheofigureo wouldoincreaseotoo10%oofotheochequeoamount."o o o

6.3.o o TheostatutoryoprovisionoofoSectiono359oofoBNSS,o2023o(Sectiono 320oofoCr.P.C.,o1973)oandoSectiono147oofoNegotiableoInstrumentsoAct,o1881o whenoexaminedoalongwithoSectiono528oofoBNSS,o2023oinotheoguidingolighto ofotheojudgmentsoofotheoHon'bleoSupremeoCourtoinocasesoofoDamodaroS.o Prabhuo(supra),M/soNewoWinoExporto(supra)oandoSanjabijoTario(supra),o leadotootheounequivocaloconclusionothatotheooffenceounderoSectiono138oofo Negotiableo Instrumentso Act,o 1881o cano beo compoundedo ato allo stageso ofo litigation,o includingo wheno theo mattero haso reachedo theo Higho Courto aftero havingobeenoconclusivelyodealtowithobyotheoMagisterialoasoalsootheoSessionso Court.ooInootherowords,osuchoanooffenceocanobeocompromised/compoundedo evenoafterotheopetitioner-accusedohasobeenoconvictedobyotheoCourtoofolearnedo Magistrateo ando hiso appealo againsto theo sameo haso beeno dismissedo byo theo learnedoSessionsoCourt.ooo

6.4.o o TheoHon'bleoSupremeoCourtoinotheojudgmentoofoDamodaroS.o Prabhuo (supra)o haso alsoo enunciatedo that,o ordinarily,o costso oughto too beo CRRoNos.1973,o1979o&o1984o(O&M)o o o o P a g e o?o6o o imposedowhenotheooffenceounderoSectiono138oofoNegotiableoInstrumentsoActo ofo 1881o iso compoundedo ato ao stageo wheno substantialo proceedingso haveo alreadyobeenoundertakenobyotheoCourtsosooasotoodissuadeotheounscrupulouso litigantofromoundulyodelayingotheocompoundingoofosuchooffences.ooHowever,o discretiono haso beeno reservedo ino favouro ofo theo concernedo Courto too reduce/waiveo sucho costs,o ino caseo facts/circumstanceso ofo ao giveno caseo soo warrant.oTheoHon'bleoSupremeoCourtoinocaseoofoSanjabijoTario(supra)ohaso revisitedotheoguidelines,oinsofaroasoitorelatesotootheoquantumoofoimpositionoofo costso upono theo accused,o buto haso noto modifiedo theo leewayo grantedo ino theo judgmentoofoDamodaroS.oPrabhuo(supra)owhichopermitsoreductionoorowaivero ofocostsobasedoonotheofactualomilieuoofoaoparticularocaseoalbeitosubjectotootheo recordingooforeasonsoforosuchovariance.oForotheosakeoofoclarityoitoisoreiteratedo thatolibertyoreservedoinofavouroofotheocourtsotoowaiveotheoimpositionoofocostso mayobeoexercisedobyoanyoofotheocourtsoseizedoofotheomatter―beoitotheoHigho Court,otheoSessionsoCourtoorotheomagisterialoCourtoconductingotrial.oItois,o however,oimperativeotoobearoinomindothatodiscretionotoowaiveotheoimpositiono ofocostsoisonototoobeoinvokedoasoaomatteroofoordinaryocourse.oTheoexerciseoofo sucho discretiono musto beo predicatedo upono exceptional,o compellingo ando accentuatingo circumstanceso which,o ino theo consideredo opiniono ofo theo concernedoCourtoseizedoofotheomatter,owarrantodeviationofromotheogeneralo ruleoofoimpositionoofocost.oTheoCourt,owhileoinvokingosuchodiscretion,omusto recordoclear,ocogentoandoreasonedofindingsodelineatingotheospecialofactorso thato justifyo theo waiver.o Thiso requiremento iso ino consonanceo witho theo legislativeointentoandotheounderlyingopurposeosoughtotoobeoachievedobyotheo criminalizationoofotheoactoofodishonoroofocheque,oi.e.otooinculcateofinancialo disciplineoandoupholdotheocredibilityoandosanctityoofonegotiableoinstruments.o CRRoNos.1973,o1979o&o1984o(O&M)o o o o P a g e o?o7o o

6.5.o o Stillofurther,otheoinherentojurisdictionoofotheoHighoCourtoundero Sectiono528oBNSS,o2023isoprimarilyoaimedoatopreventingoabuseoofojudicialo processo ando securingo theo endso ofo justice.o Thus,o whereo theo disputeo iso essentiallyopersonaloinonatureoandoaogenuineocompromiseohasobeenoreached,o theo Higho Courto mayo interveneo too quasho theo conviction,o recognizingo thato continuedo proceedingso wouldo beo non-productiveo ando unjusto ino theo giveno circumstances.oTheoinherentopowersoofoaoHighoCourtoareoincidentalorepleteo powers,oinotheoabsenceoofowhich,otheoCourtowouldobeoobligedotoositostilloando helplesslyo witnesso theo processo ofo lawo beingo abusedo foro theo purposeso ofo injustice.o Ino othero words;o sucho power(s)o iso intrinsico too theo Higho Court,o formingoitsoveryolife-blood,oitsoveryoessence,oitsoimmanentoattribute.oWithouto suchopower(s),oaoHighoCourtowouldoretainoformobutolackosubstance.oTheseo powerso ofo ao Higho Courto henceo deserveo too beo construedo witho theo widesto possibleo amplitude.o Theseo inherento powerso areo ino consonanceo witho theo natureoofoaoHighoCourtowhichooughtotoobe,oandohasoinofactobeen,oinvestedo withopower(s)otoomaintainoitsoauthorityotoopreventotheoprocessoofolaw/Courtso fromobeingo obstructedo oro abused.o Ito iso ao triteopositoofo jurisprudenceo thato thougholawsoattemptotoodealowithoallocasesothatomayoarise,otheoinfiniteovarietyo ofo circumstanceso whicho shapeo eventso ando theo imperfectionso ofo languageo makeoitoimpossibleotoolayodownoprovisionsocapableoofogoverningoeveryocase,o whichoinofactoarises.oAoHighoCourtowhichoexistsoforotheofurtheranceoofojusticeo inoanoindefatigableomanner,oshouldotherefore,ohaveounfetteredopower(s)otoo dealowithosituationsowhich,othoughonotoexpresslyoprovidedoforobyotheolaw,o needotoobeodealtowith,otoopreventoinjusticeoorotheoabuseoofotheoprocessoofolawo andoCourts.oTheojuridicalobasisoofotheseoplenaryopower(s)oisotheoauthority;oino facto theo seminalo dutyo ando responsibilityo ofo ao Higho Court;o too uphold,o too protecto ando too fulfillo theo judicialo functiono ofo administeringo justice,o ino CRRoNos.1973,o1979o&o1984o(O&M)o o o o P a g e o?o8o o accordanceowitholaw,oinoaoregular,oorderlyoandoeffectiveomanner.oInoothero words;oSectiono528oofoBNSS,o2023oreflectsopeerlessoandoinherentopowers,oofo aoHighoCourtowhichomayobeoinvokedowheneveroitoisojustoandoequitableotoodoo so,o ino particularo too ensureo theo observanceo ofo theo dueo processo ofo law,o too preventovexationoorooppression,otoodoojusticeonayosubstantialojusticeobetweeno theopartiesoandotoosecureotheoendsoofojustice.oTherefore,otheoHighoCourt,oino theoexerciseoofoitsoinherentopowerounderosectiono528oBNSS,o2023ohasotheo discretionotooquashoaoconvictionowhereotheopartiesohaveoreachedoanoamicableo settlement,oprovidedothatosuchocompromiseoneitheroimpingeouponotheopublico interestonoroundermineotheocauseojustice,oasowelloasotheosubstantialojustice.o

7.o o Revertingotootheofactsoofotheocaseoinohand,oitoisonotodisputedobyo theoconcernedorivalopartiesothatoanoamicableosettlementohasobeenoarrivedoato betweenothemoand,otherefore,ocompoundingoofotheooffenceoandonecessaryo furthero directionso haveo beeno soughto fromo thiso Court.o o Ao perusalo ofo theo compromise/settlementodatedo07.11.2025ostatedotoobeoarrivedobetweenotheo partiesoreflectsothatotheopartiesohaveosoughtotooresolveotheirodispute(s)oinototoo andoburyotheohatchet.oConsequently,oinotheoconsideredoopinionoofothisoCourt,o theo factualo matrixo ofo theo caseo requireso thato theo offence(s)o oughto too beo permittedotoobeocompoundedoandotheopetitionerodeservesotoobeoacquitted.ooo

7.1.o o Keepingo ino viewo theo entiretyo ofo theo attendingo facts/circumstancesoofotheocase;oespeciallyofactumoofotheopetitionerohavingo sufferedo incarcerationo foro abouto 3o monthso &o 22o dayso aftero havingo beeno convictedobyotheoSessionsoCourt,otheopetitionerohavingofacedotheowrathoofo criminalolitigationosinceoaboutotheoyearo2018,otheopetitionerobeingoaopersono agedo47oyearsoofoageoandotheopetitionerobeingopleadedotoobeoaofirstotimeo offender;othisoCourtodoesonotodeemoitoappropriateotoosaddleotheopetitionero CRRoNos.1973,o1979o&o1984o(O&M)o o o o P a g e o?o9o o

8.o o Inoviewoofotheoprevenientoratiocination,oitoisoordainedothus:o

(i)o o Theo impugnedo judgmento datedo 31.05.2025o passedo byo theo learnedoAdditionaloSessionsoJudge,oKurukshetrao&otheojudgmentoandoordero stofosentenceodatedo07.08.2023/10.08.2023opassedobyoJudicialoMagistrateo1 o Class,oKurukshetraoareoset-asideoandotheopetitioneroisoacquitted.oo

(ii)o o Theo rivalo partieso shallo remaino boundo byo theo termso ofo theo settlement/compromiseodatedo07.11.2025oenteredointoobetweenotheopartieso beforeotheoMediationoandoConciliationoCenteroofothisoCourt.ooInocaseoofonon-complianceothereof,otheoaggrievedopartyoshallobeoatolibertyotooseekorecalloofo thisoorder,oalbeitouponoshowingosufficientocause.ooItoisoclarifiedothatoinocaseo non-complianceoisofoundotoobeoshown,otheoerringopartyomayobeosaddledowitho exemplaryopunitiveomeasure(s).ooo

(iii)o o Nooorderoasotoocosts.oo

(iv)oo o Pendingoapplication(s),oifoany,oshalloalsoostandsodisposedoof.oo

(v)oo o Photocopyoofothisoorderobeoplacedoonotheofileoofootheroconnectedo case(s).o o o o o o o o o o o oooooo(SUMEEToGOEL)o o o o o o o o o JUDGEo Novembero12,o2025o Naveeno o o o o o Whetherospeaking/reasoned:o o Yeso o o Whetheroreportable:o o o Yeso o