Gurmukh Singh v. State of Punjab and Others

INoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAoATo CHANDIGARHo o o 259o o o o o o o ooooooCRR-756-2022o(O&M)o GurmukhoSinghoo o o o o o o o o o o o ....Petitionero V/so StateoofoPunjaboandoothersoo o o o o o o o o o ....Respondento o

(2)o o o o o o o CRM-M-43690-2025o(O&M)o GurmukhoSinghooooooo o o o o o o o o o o o ....Petitionero V/so StateoofoPunjaboandoothersoo o o o o o o o o o ....Respondento o o o o Dateoofodecision:o30.10.2025o o CORAM:oo HON'BLEoMR.oJUSTICEoSUMEEToGOELo Present:oo Mr.oAjitoSinghoNatt,oAdvocateoforotheopetitioner.oo o o o Ms.oAimanoJ.oChishti,oAAG,oPunjab.o o o o Mr.oA.S.oMann,oAdvocateofororespondentoNos.2o&o3.o *****o SUMEEToGOEL,oJ.o(Oral)o

1.o o TheopresentocriminalorevisionopetitionobearingoNo.CRR-756-2022ohasobeenofiledoimpugningotheojudgmentodatedo15.03.2022opassedobyotheo learnedoSessionsoJudge,oPatiala&otheojudgmentoasoalsootheoorderoofosentenceo datedo 05.01.2019o passedo byo Sub-Divisionalo Judicialo Magistrate,o Samanao wherebyotheopetitionerohasobeenoconvictedoandosentencedoforooffenceoundero Sectiono138oofoNegotiableoInstrumentsoAct,o1881.oo

2.o o Learnedocounseloforotheopetitionerohasosubmittedothatoduringotheo pendencyoofoproceedings,otheopetitioneroandotheocomplainantohaveoenteredo intooaosettlement/compromiseodatedo09.06.2022o(copyowhereofoappendedoaso AnnexureoP-6owithotheopresentopetition).oLearnedocounseloforotheopetitionero o CRR-756-2022(O&M)o&oCRM-M-43690-2025o(O&M)o o 2o o haso furthero submittedo thato sinceo theo partieso haveo amicablyo settledo theiro dispute(s),otheomatteromayobeocompoundedoandotheopetitionerobeoacquitted.ooo

3.o o LearnedocounseloappearingoforotheorespondentoNos.2o&o3haso ratifiedo theo factumo ofo compromise/settlemento havingo beeno arrivedo ato betweeno theo partieso ando haso furthero vouchedo theo genuinenesso ofo theo compromise/settlemento datedo 09.06.2022statedo too beo arrivedo betweeno theo parties.oAccordingly,oheohasoiteratedothatotheorespondent-complainantohasonoo objectiono ino caseo theo offenceo iso permittedo too beo compoundedo ando theo petitioneroisoorderedotoobeoacquitted.oo

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

5.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 submission,oweodirectothatotheofollowingoguidelinesobeofollowed:-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 o CRR-756-2022(O&M)o&oCRM-M-43690-2025o(O&M)o o 3o 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 vacuum,oweoseeonoohurdleotootheoendorsementoofosomeosuggestionsowhicho haveo beeno designedo too discourageo litigantso fromo undulyo delayingo theo compositionoofotheooffenceoinocasesoinvolvingoSectiono138oofotheoAct.oTheo gradedoschemeoforoimposingocostsoisoaomeansotooencourageocompoundingo atoanoearlyostageoofolitigation.oInotheostatusoquo,ovaluableotimeoofotheoCourto 2025.10.31 16:11 isospentoonotheotrialoofotheseocasesoandotheopartiesoareonotoliableotoopayoanyo o CRR-756-2022(O&M)o&oCRM-M-43690-2025o(O&M)o o 4o o 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

5.1.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

5.2.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 pendingoandointerestoratesohaveofallenoinotheolastofewoyears,othisoCourtoiso ofo theo viewo thato ito iso timeo too 'revisito ando tweako theo guidelines'.o Accordingly,otheoaforesaidoguidelinesoofocompoundingoareomodifiedoaso under:-o o CRR-756-2022(O&M)o&oCRM-M-43690-2025o(O&M)o o 5o 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

5.3.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

5.4.o o TheoHon'bleoSupremeoCourtoinotheojudgmentoofoDamodaroS.o Prabhuo (supra)o haso alsoo enunciatedo that,o ordinarily,o costso oughto too beo imposedowhenotheooffenceounderoSectiono138oofoNegotiableoInstrumentsoActo I attest to the accuracy andofo 1881o iso compoundedo ato ao stageo wheno substantialo proceedingso haveo o CRR-756-2022(O&M)o&oCRM-M-43690-2025o(O&M)o o 6o o 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

5.5.o o Stillofurther,otheoinherentojurisdictionoofotheoHighoCourtoundero Sectiono528oBNSS,o2023isoprimarilyoaimedoatopreventingoabuseoofojudicialo 2025.10.31 16:11 processo ando securingo theo endso ofo justice.o Thus,o whereo theo disputeo iso o CRR-756-2022(O&M)o&oCRM-M-43690-2025o(O&M)o o 7o o 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 accordanceowitholaw,oinoaoregular,oorderlyoandoeffectiveomanner.oInoothero words;oSectiono528oofoBNSS,o2023oreflectsopeerlessoandoinherentopowers,oofo 2025.10.31 16:11 aoHighoCourtowhichomayobeoinvokedowheneveroitoisojustoandoequitableotoodoo o CRR-756-2022(O&M)o&oCRM-M-43690-2025o(O&M)o o 8o o 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

6.o o Revertingotootheofactsoofotheocaseoinohand,oitoisonotodisputedobyo theoconcernedorivalopartiesothatoanoamicableosettlementohasobeenoarrivedoato betweenothemoand,otherefore,ocompoundingoofotheooffenceoandonecessaryo furthero directionso haveo beeno soughto fromo thiso Court.o o Ao perusalo ofo theo compromise/settlementodatedo09.06.2022ostatedotoobeoarrivedobetweenotheo partiesoreflectsothatotheopartiesohaveosoughtotooresolveotheirodispute(s)oinototoo andoburyotheohatchet.oConsequently,oinotheoconsideredoopinionoofothisoCourt,o theo factualo matrixo ofo theo caseo requireso thato theo offence(s)o oughto too beo permittedotoobeocompoundedoandotheopetitionerodeservesotoobeoacquitted.ooo

6.1.o o Keepingo ino viewo theo entiretyo ofo theo attendingo facts/circumstancesoofotheocase;oespeciallyofactumoofotheopetitionerohavingo sufferedoincarcerationoforoabouto18odaysoafterohavingobeenoconvictedobyotheo SessionsoCourt,otheopetitionerohavingofacedotheowrathoofocriminalolitigationo sinceoaboutotheoyearo2014,otheopetitionerobeingoaopersonoagedo53oyearsoofoageo andotheopetitionerobeingopleadedotoobeoaofirstotimeooffender;othisoCourtodoeso notodeemoitoappropriateotoosaddleotheopetitionerowithocosts.ooo

7.o o Inoviewoofotheoprevenientoratiocination,oitoisoordainedothus:o

(i)o o Theo impugnedo judgmento datedo 15.03.2022o passedo byo theo learnedoSessionsoJudge,oPatialao&otheojudgmentoasoalsootheoorderoofosentenceo o CRR-756-2022(O&M)o&oCRM-M-43690-2025o(O&M)o o 9o o datedo05.01.2019opassedobyoSub-DivisionaloJudicialoMagistrate,oSamanaoareo set-asideoandotheopetitioneroisoacquitted.oo

(ii)o o Theo rivalo partieso shallo remaino boundo byo theo termso ofo theo settlement/compromiseo datedo 09.06.2022o (Annexureo P-6)o enteredo intoo betweenotheoparties.ooInocaseoofonon-complianceothereof,otheoaggrievedopartyo shallobeoatolibertyotooseekorecalloofothisoorder,oalbeitouponoshowingosufficiento cause.ooItoisoclarifiedothatoinocaseonon-complianceoisofoundotoobeoshown,otheo erringopartyomayobeosaddledowithoexemplaryopunitiveomeasure(s).ooo

(iii)oo o Sinceo theo offenceo itselfo standso compoundedo ono theo basiso ofo compromise,oconnectedopetitionobearingoCRM-MoNo.43690oofo2025ofiledo foroseekingoquashingoofotheoimpugnedojudgmentodatedo15.03.2022opassedobyo learnedo Sessionso Judge,o Patialao aso alsoo theo ordero ofo sentenceo datedo

05.01.2019opassedobyo Sub-DivisionaloJudicialo Magistrate,o Samanaostandso allowedo ando consequentlyo theo sameo areo herebyo quashedo ando seto aside.o Resultantly,otheopetitionerostandsoacquitted.o

(iv)o o Nooorderoasotoocosts.oo

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

(vi)oo o Photocopyoofothisoorderobeoplacedoonotheofileoofootheroconnectedo case(s).o o o o o o o o o o oooooo(SUMEEToGOEL)o o o o o o o o o JUDGEo Octobero30,o2025o Naveeno o o o o o Whetherospeaking/reasoned:o o Yes/Noo o o Whetheroreportable:o o o Yes/Noo o