Mishra Singh v. Sanjeev Goyal and Another

INoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAoAToo CHANDIGARHo o o o o o o o o o 127o o o o o o o CRR-2647-2025o(O&M)o o o o o o o o Dateoofodecision:o09.12.2025o o o o o o o o Dateoofouploading:09.12.2025o o MishraoSinghoo o o o o o o o ....Petitionerooo V/so SanjeevoGoyaloandoanothero o o o o ....Respondentso o CORAM:oo HON'BLEoMR.oJUSTICEoSUMEEToGOELo Present:oo Mr.oDhirajoJindal,oAdvocateoforotheopetitioner.oo o o o Mr.oPrashantoPuri,oAdvocateofororespondentoNo.1.o o o o Mr.oAdhirajoSingh,oAAG,oPunjabo o o fororespondentoNo.2.o o o o o o *****o SUMEEToGOEL,oJ.o(Oral)oo

1.o o Theo presento petitiono haso beeno filedo impugningo theo judgmento datedo30.09.2025opassedobyotheolearnedoAdditionaloSessionsoJudge,oSangruro &otheojudgmentoasoalsootheoorderoofosentenceodatedo09.08.2021opassedobyo Judicialo Magistrateo Isto Class,o Sangrur,o wherebyo theo petitionero haso beeno convictedo ando sentencedo foro offenceo undero Sectiono 138o ofo Negotiableo InstrumentsoAct,o1881.oo

2.o o Learnedocounseloforotheopetitionerohasosubmittedothat,oduringotheo pendencyoofoproceedings,otheopetitioneroandotheocomplainantohaveoenteredo intooaosettlement/compromiseodatedo14.11.2025obeforeotheoMediationoCentreo ofothisoCourt.ooLearnedocounseloforotheopetitionerohasosubmittedothat,osinceo theo partieso haveo amicablyo settledo theiro dispute(s),o theo mattero mayo beo compoundedoandotheopetitionerobeoacquitted.ooo

3.o o Ono30.10.2025,otheofollowingoorderowasopassed:o "Mr.oAmitoSharma,oAdvocateoappearingoforoMr.oPrashantoPuri,o Advocateohasocausedoappearanceoonobehalfoofotheorespondentobyo 2025.12.09 17:44 filingomemooofoappearance.oTheosameobeokeptoonorecord.oo CRR-2647-2025o(O&M)oo o P a g e | 2

o Atothisojuncture,oaojointorequestohasobeenomadeobyolearnedo counseloforotheorivalopartiesothatothereoareochancesoofoamicableo settlementobetweenotheoparties.oo o Ino viewo thereof,o theo partieso areo directedo (througho theiro respectiveo counsel)o too appearo beforeo theo Mediationo ando ConciliationoCentreoofothisoCourtoono4.11.2025.oo o Putoupoono1.12.2025oalongwithotheoreportoofoMediator.oo o Tillo theo nexto dateo ofo hearingo sentenceo ofo theo applicant-petitionero iso suspendedo too theo satisfactiono ofo theo learnedo trialo Court/DutyoMagistrate."o

4.o o Pursuantotootheoaforesaidoorder,oreportodatedo14.11.2025ofromo theo Mediationo &o Conciliationo Centreo ofo thiso Courto haso beeno received,o whereinoitohasobeenomentionedothatotheopartiesohaveoamicablyosettledotheiro dispute(s)o video settlement/agreemento deedo datedo 14.11.2025o havingo beeno enteredobetweenotheoparties.oo

5.o o Learnedo counselo appearingo foro theo complainant-respondento No.1ohasoratifiedotheofactumoofocompromise/settlementohavingobeenoarrivedo ato betweeno theo partieso ando haso furthero vouchedo theo genuinenesso ofo theo settlement/agreementodatedo14.11.2025o(copyowhereofohasobeenoappendedo witho theo reporto ofo theo Mediator).o Accordingly,o heo haso iteratedo thato theo respondento No.1-complainanto haso noo objectiono ino caseo theo offenceo iso permittedotoobeocompoundedoandotheopetitioneroisoorderedotoobeoacquitted.ooo

6.oo o Similarly,olearnedoStateocounselothatoheohasonooobjectionoinocaseo theooffenceoisopermittedotoobeocompoundedobyothisoCourtoandotheopetitioneroiso orderedotoobeoacquitted.oo

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

8.o o Itowouldobeoappositeotooreferohereinotooaojudgmentopassedobyo threeo Judgeo Bencho ofo theo Hon'bleo Supremeo Courto titledo aso Damodaro S.o Prabhuovs.oSayedoBabalaloH.,oAIRo2010(SC)o1907,orelevantowhereoforeadso I attest to the accuracy andthus:o CRR-2647-2025o(O&M)oo o P a g e | 3

o "15.oWithoregardotootheoprogressionoofolitigationoinochequeobouncingocases,otheo learnedoAttorneyoGeneralohasourgedothisoCourtotooframeoguidelinesoforoaogradedo schemeo ofo imposingo costso ono partieso whoo undulyo delayo compoundingo ofo theo offence.oItowasosubmittedothatotheorequirementoofodepositoofotheocostsowilloactoasoao deterrentoforodelayedocomposition,osinceoatopresent,ofreeoandoeasyocompoundingo ofooffencesoatoanyostage,ohoweverobelated,ogivesoanoincentiveotootheodraweroofotheo chequeotoodelayosettlingotheocasesoforoyears.oAnoapplicationoforocompoundingo madeoafteroseveraloyearsonotoonlyoresultsoinotheosystemobeingoburdenedobutotheo complainantoisoalsoodeprivedoofoeffectiveojustice.oInoviewoofothisosubmission,oweo directothatotheofollowingoguidelinesobeofollowed:-o o THEoGUIDELINESo o (i)oInotheocircumstances,oitoisoproposedoasofollows:o o (a)o Thato directionso cano beo giveno thato theo Writo ofo Summonso beo suitablyomodifiedomakingoitoclearotootheoaccusedothatoheocouldomakeo ano applicationo foro compoundingo ofo theo offenceso ato theo firsto oro secondohearingoofotheocaseoandothatoifosuchoanoapplicationoisomade,o compoundingomayobeoallowedobyotheocourtowithoutoimposingoanyo costsoonotheoaccused.o o (b)oIfotheoaccusedodoesonotomakeoanoapplicationoforocompoundingo aso aforesaid,o theno ifo ano applicationo foro compoundingo iso madeo beforeotheoMagistrateoatoaosubsequentostage,ocompoundingocanobeo allowedosubjectotootheoconditionothatotheoaccusedowillobeorequiredo toopayo10%oofotheochequeoamountotoobeodepositedoasoaoconditionoforo compoundingowithotheoLegaloServicesoAuthority,oorosuchoauthorityo asotheoCourtodeemsofit.o o (c)oSimilarly,oifotheoapplicationoforocompoundingoisomadeobeforeo theoSessionsoCourtooroaoHighoCourtoinorevisionooroappeal,osucho compoundingomayobeoallowedoonotheoconditionothatotheoaccusedo payso15%oofotheochequeoamountobyowayoofocosts.o o (d)oFinally,oifotheoapplicationoforocompoundingoisomadeobeforeotheo SupremeoCourt,otheofigureowouldoincreaseotoo20%oofotheochequeo amount.o o Letoitoalsoobeoclarifiedothatoanyocostsoimposedoinoaccordanceowithotheseo guidelinesoshouldobeodepositedowithotheoLegaloServicesoAuthorityooperatingo ato theo levelo ofo theo Courto beforeo whicho compoundingo takeso place.o Foro instance,o ino caseo ofo compoundingo duringo theo pendencyo ofo proceedingso 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 2025.12.09 17:44 o xxxo o o xxxo o o xxxo o o xxxo CRR-2647-2025o(O&M)oo o P a g e | 4

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 isospentoonotheotrialoofotheseocasesoandotheopartiesoareonotoliableotoopayoanyo CourtofeeosinceotheoproceedingsoareogovernedobyotheoCodeoofoCriminalo Procedure,oevenothoughotheoimpactoofotheooffenceoisolargelyoconfinedotootheo privateoparties.oEvenothoughotheoimpositionoofocostsobyotheocompetentocourto iso ao mattero ofo discretion,o theo scaleo ofo costso haso beeno suggestedo ino theo interestoofouniformity.oTheocompetentoCourtocanoofocourseoreduceotheocostso witho regardo tootheo specifico factso ando circumstanceso ofo ao case,o whileo recordingoreasonsoinowritingoforosuchovariance.oBonaofideolitigantsoshouldo ofocourseocontestotheoproceedingsotootheirologicaloend.oEvenoinotheopast,o thisoCourtohasousedoitsopowerotoodoocompleteojusticeounderoArticleo142oofo theoConstitutionotooframeoguidelinesoinorelationotoosubject-matterowhereo thereowasoaolegislativeovacuum."o

8.1.o o FurtherotheoHon'bleoSupremeoCourtoinoaojudgmentotitledoasoM/so NewoWinoExporto&oAnr.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.oItoisotoobeorememberedothatodishonouroofo chequesoisoaoregulatoryo offenceowhichowasomadeoanooffenceoonlyoinoviewoofopublicointerestosoothato theo reliabilityo ofo theseo instrumentso cano beo ensured.o Ao largeo numbero ofo casesoinvolvingodishonouroofochequesoareopendingobeforeocourtsowhichoisoao 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 I attest to the accuracy and Manojo Goelo(2022)o 11o SCCo 705o (Parao 29),o Meterso Ando Instrumentso CRR-2647-2025o(O&M)oo o P a g e | 5

PrivateoLimitedoAndoAnr.ov.oKanchanoMehtao(2018)o1oSCCo560o(Parao

18.2)"oo

8.2.o o Theo statutoryo provisiono ofo Sectiono 359o ofo BNSS,o 2023o ando Sectiono147oofoNegotiableoInstrumentsoAct,o1881owhenoexaminedoalongwitho Sectiono528oofoBNSS,o2023oinotheoguidingolightoofotheojudgmentsoofotheo Hon'bleoSupremeoCourtoinocasesoofoDamodaroS.oPrabhuocaseo(supra)oando M/soNewoWinoExportocaseo(supra),oleadotootheounequivocaloconclusionothato theooffenceounderoSectiono138oofoNegotiableoInstrumentsoAct,o1881ocanobeo compoundedoatoallolevelsoofotheostageoofolitigationoincludingowhenotheomattero haso reachedo theo Higho Courto aftero beingo conclusivelyo dealto witho byo theo MagisterialoasoalsootheoSessionsoCourt.ooInootherowords,osuchoanooffenceocano beo compromised/compoundedo eveno aftero theo petitioner-accusedo haso beeno convictedobyotheoCourtoofolearnedoMagistrateoandohisoappealoagainstotheosameo hasobeenodismissedobyotheolearnedoSessionsoCourt.ooo o o TheoHon'bleoSupremeoCourtoinotheojudgmentoofoDamodaroS.o Prabhuocaseo(supra)ohasoalsooenunciatedothat,oordinarily,ocostsooughtotoobeo imposedowhenotheooffenceounderoSectiono138oofoNegotiableoInstrumentsoActo ofo1881oisocompoundedoatoaostageowhenosubstantialoproceedingsohaveobeeno undertakeno byo Courtso soo aso too dissuadeo theo unscrupulouso litiganto fromo undulyodelayingotheocompoundingoofosuchooffences.ooHowever,odiscretiono hasobeenoreservedoinofavouroofotheoconcernedoCourtotooreduce/waiveooffosucho costs,oinocaseofacts/circumstancesoofoaogivenocaseosoowarrant.oooo

8.3.o o Stillofurther,otheoinherentojurisdictionoofotheoHighoCourtoundero Sectiono528oBNSS,o2023oisoprimarilyoaimedoatopreventingoabuseoofojudicialo processo ando securingo theo endso ofo justice.o Thus,o wheno theo disputeo iso essentiallyopersonaloinonatureoandoaogenuineocompromiseohasobeenoreached,o theo Higho Courto mayo interveneo too quasho theo convictiono recognizingo theo I attest to the accuracy andcontinuedo proceedingso wouldo beo non-productiveo ando unjusto ino theo giveno CRR-2647-2025o(O&M)oo o P a g e | 6

circumstances.oTheoinherentopowersoofoaoHighoCourtoareopowersowhichoareo incidentalo repleteo powers,o whicho ifo dido noto soo exist,o theo Courtowouldo beo obligedotoositostilloandohelplesslyoseeotheoprocessoofolawoandoCourtsobeingo abusedo foro theo purposeso ofo injustice.o Ino othero words;o sucho power(s)o iso intrinsico too ao Higho Court,o ito iso itso veryo life-blood,o itso veryo essence,o itso immanentoattribute.oWithoutosuchopower(s),oaoHighoCourtowouldohaveoformo butolackotheosubstance.oTheseopowersoofoaoHighoCourtohenceodeserveotoobeo construedowithotheowidestopossibleoamplitude.oTheseoinherentopowersoareoino consonanceowithotheonatureoofoaoHighoCourtowhichooughtotoobe,oandohasoino factobeen,oinvestedowithopower(s)otoomaintainoitsoauthorityotoopreventotheo processo ofo law/Courtso beingo obstructedo oro abused.o Ito iso ao triteo posito ofo jurisprudenceothatothougholawsoattemptotoodealowithoallocasesothatomayoarise,o theo infiniteo varietyo ofo circumstanceso whicho shapeo eventso ando theo imperfectionso ofo languageo makeo ito impossibleo too layo downo provisionso capableoofogoverningoeveryocase,owhichoinofactoarises.oAoHighoCourtowhicho existso foro theo furtheranceo ofo justiceo ino ano indefatigableo manner,o shouldo therefore,ohaveounfetteredopower(s)otoodealowithosituationsowhich,othoughonoto expresslyoprovidedoforobyotheolaw,oneedotoobeodealtowith,otoopreventoinjusticeo orotheoabuseoofotheoprocessoofolawoandoCourts.oTheojuridicalobasisoofotheseo plenaryopower(s)oisotheoauthority;oinofactotheoseminalodutyoandoresponsibilityo ofoaoHighoCourt;otoouphold,otooprotectoandotoofulfillotheojudicialofunctionoofo administeringo justice,o ino accordanceo witho law,o ino ao regular,o orderlyo ando effectiveo manner.o Ino othero words;o Sectiono 528o ofo BNSS,o 2023o reflectso peerlessopowers,owhichoaoHighoCourtomayodrawouponoasonecessaryowhenevero itoisojustoandoequitableotoodooso,oinoparticularotooensureotheoobservanceoofotheo dueo processo ofo law,o toopreventovexationo orooppression,otoodoo justiceonayo substantialo justiceo betweeno theo partieso ando too secureo theo endso ofo justice.o CRR-2647-2025o(O&M)oo o P a g e | 7

Therefore,otheoHighoCourt,oinotheoexerciseoofoitsoinherentopowerounderosectiono 528oBNSS,o2023ohasotheodiscretionotooquashoaoconvictionowhereotheopartieso haveoreachedoanoamicableosettlement,oprovidedosuchocompromiseodoesonoto impingeo upono theo publico interesto oro undermineo justice,o aso wello aso theo substantialojustice.o

9.o o Revertingotootheofactsoofotheocaseoinohand,oitoisonotodisputedobyo theoconcernedorivalopartiesothatoanoamicableosettlementohasobeenoarrivedoato betweeno themo and,o therefore,o compoundingoofo theo offenceo andonecessaryo furthero directionso haveo beeno soughto fromo thiso Court.o o Ao perusalo ofo theo settlement/agreementoreflectsothatotheopartiesohaveosoughtotooresolveotheiro dispute(s)o ino totoo ando buryo theo hatchet.o Consequently,o ino theo consideredo opiniono ofo thiso Court,o theo factualo matrixo ofo theo caseo requireso thato theo offence(s)o oughto too beo permittedo too beo compoundedo ando theo petitionero deservesotoobeoacquitted.ooo

9.1.o o Keepingoinoviewotheoentiretyoattendingofacts/circumstancesoofo theo case;o especiallyo factumo ofo theo petitionero havingo facedo theo wratho ofo criminalo litigationo sinceo theo yearo 2018,o theo petitionero iso agedo 62o yearso saddledowithotheoresponsibilityoofohisofamilyoandotheopetitionerobeingopleadedo too beo ao firsto timeo offendero ando theo petitionero beingo pleadedo noto too beo belongingotoo affluento society;o thiso Courto doesonotodeemoito appropriateo too saddleotheopetitionerowithocosts.ooo

10.o o Inoviewoofotheoabove,oitoisodirectedoasounder:-o

(i)o o Theo impugnedo judgmento datedo 30.09.2025o passedo byo theo learnedoAdditionaloSessionsoJudge,oSangruro&otheojudgmentoasoalsootheoordero ofo sentenceo datedo 09.08.2021o passedo byo Judicialo Magistrateo Isto Class,o Sangruroareoset-asideoandotheopetitioneroisoacquitted.oo

(ii)o o Nooorderoasotoocosts.oo CRR-2647-2025o(O&M)oo o P a g e | 8

(iii)oo o Pendingoapplication(s),oifoany,oshalloalsoostandsodisposedoof.o oo o o o o o o o o o o o o oooooo(SUMEEToGOEL)o o ooooooooooooooooo o o ooooooooooooooooooooo ooo o o oooJUDGEo Decembero09,o2025o Naveeno o o Whetherospeaking/reasoned:o o Yes/Noo o o Whetheroreportable:o o o Yes/Nooo