Delhi High Court – Orders
Anirudh Kumar Sharma vs The State Nct Of Delhi & Anr on 17 April, 2025
Author: Sanjeev Narula
Bench: Sanjeev Narula
$~11 & 12
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CRL.REV.P. 518/2019 & CRL.M.As. 18536/2021, 675/2022,
CRL.M.(BAIL) 787/2019
ANIRUDH KUMAR SHARMA .....Petitioner
Through:
versus
THE STATE NCT OF DELHI & ANR .....Respondents
Through: Mr. Digam Singh Dagar, APP for R-
1.
Mr. Ajay Sharma, Respondent No. 2
(through VC).
+ CRL.REV.P. 519/2019 & CRL.M.As. 18527/2021, 681/2022,
CRL.M.(BAIL) 788/2019
ANIRUDH KUMAR SHARMA .....Petitioner
Through: Mr. Zainul Abedeen, Advocate.
versus
THE STATE NCT OF DELHI & ANR .....Respondents
Through: Mr. Digam Singh Dagar, APP for R-
1.
Mr. Ajay Sharma, Respondent No. 2
(through VC).
CORAM:
HON'BLE MR. JUSTICE SANJEEV NARULA
ORDER
% 17.04.2025
1. The present petitions filed under Sections 438 and 442 of the
CRL.REV.P. 518/2019 & CRL.REV.P. 519/2019 Page 1 of 5
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Bharatiya Nagarik Suraksha Sanhita, 2023 (formerly Sections 397 and 401
of the Code of Criminal Procedure, 19731) are directed against two separate
orders dated 27th March, 2019 passed by the Special Judge (PC Act), CBI-
01, South, Saket Courts. By the said orders, the Special Judge upheld the
two separate judgments of conviction both dated 3rd October, 2018 and
orders on sentence both dated 5th December, 2018, in CC No. 542/2016 and
CC No. 932/2016, respectively. The Petitioner was convicted for the offence
under Section 138 of the Negotiable Instruments Act, 18812 as under:
(a) In CC No. 542/2016, the Petitioner was sentenced to undergo simple
imprisonment for a period of 6 months and to pay a fine of INR 20,00,000/-,
in default whereof, to undergo further simple imprisonment of 4 months;
(b) In CC No. 932/2016, the Petitioner was sentenced to undergo simple
imprisonment for a period of 3 months and to pay a fine of INR 15,00,000/-,
in default whereof, to undergo further simple imprisonment of 3 months.
2. During the pendency of the present proceedings, the parties were
referred to Delhi Mediation Centre, Dwarka Courts, New Delhi wherein
they have settled their disputes and executed a Settlement Deed dated 6th
July, 2024. Pursuant thereto, the Respondent has received cumulative
amount of INR 11 lakhs towards settlement of all claims which form the
subject matter of the cheques for which the proceedings under Section 138
of the NI Act were initiated.
3. The Respondent, Mr. Ajay Sharma, appears through the video-
conferencing mechanism and confirms the receipt of the aforesaid amount.
He further states that he has no objection to the offence being compounded
1
“Cr.P.C.”
2
“NI Act”
CRL.REV.P. 518/2019 & CRL.REV.P. 519/2019 Page 2 of 5
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 19/04/2025 at 01:07:31
and the conviction being set aside. He affirms that the said statement is
being made voluntarily without any coercion, pressure or undue influence.
4. The Court has considered the afore-noted. Section 147 of the NI Act,
provides that every offence punishable under the Act are compoundable. It
is no longer res integra that offences under the NI Act, including offence
under Section 138, can be compounded at any stage of the proceedings.
Although an attempt for compounding of the offence under NI Act should
be made at the initial stage, however, there is no bar against seeking
compounding of the offence even after conviction.3
5. In Damodar S. Prabhu v. Sayed Babalal H.,4 the Supreme Court had
formulated guidelines for compounding the offence under Section 138 NI
Act and emphasized the imposition of cost for belated compounding. The
relevant observations read as follows:
“21. With regard to the progression of litigation in cheque bouncing
cases, the learned Attorney General has urged this Court to frame
guidelines for a graded scheme of imposing costs on parties who unduly
delay compounding of the offence. It was submitted that the requirement of
deposit of the costs will act as a deterrent for delayed composition, since
at present, free and easy compounding of offences at any stage, however
belated, gives an incentive to the drawer of the cheque to delay settling the
cases for years. An application for compounding made after several years
not only results in the system being burdened but the complainant is also
deprived of effective justice. In view of this submission, we direct that the
following guidelines be followed:
THE GUIDELINES
(i) In the circumstances, it is proposed as follows:
(a) That directions can be given that the writ of summons be suitably
modified making it clear to the accused that he could make an application
for compounding of the offences at the first or second hearing of the case
and that if such an application is made, compounding may be allowed by3
K.M Ibrahim v. K.P Mohammed & Anr., (2010) 1 SCC 798
4
2010 (2) SCC (Cri) 1328CRL.REV.P. 518/2019 & CRL.REV.P. 519/2019 Page 3 of 5
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 19/04/2025 at 01:07:31
the court without imposing any costs on the accused.
(b) If the accused does not make an application for compounding as
aforesaid, then if an application for compounding is made before the
Magistrate at a subsequent stage, compounding can be allowed subject to
the condition that the accused will be required to pay 10% of the cheque
amount to be deposited as a condition for compounding with the Legal
Services Authority, or such authority as the court deems fit.
(c) Similarly, if the application for compounding is made before the
Sessions Court or a High Court in revision or appeal, such compounding
may be allowed on the condition that the accused pays 15% of the cheque
amount by way of costs.
(d) Finally, if the application for compounding is made before the
Supreme Court, the figure would increase to 20% of the cheque amount.
xxx … xxx … xxx
25. The graded scheme for imposing costs is a means to encourage
compounding at an early stage of litigation. In the status quo, valuable
time of the court is spent on the trial of these cases and the parties are
not liable to pay any court fee since the proceedings are governed by the
Code of Criminal Procedure, even though the impact of the offence is
largely confined to the private parties. Even though the imposition of
costs by the competent court is a matter of discretion, the scale of costs
has been suggested in the interest of uniformity. The competent court
can of course reduce the costs with regard to the specific facts and
circumstances of a case, while recording reasons in writing for such
variance. Bona fide litigants should of course contest the proceedings to
their logical end.”
[Emphasis Supplied]
6. In terms of the guidelines laid down by the Supreme Court, the
offence under Section 138 of the NI Act forming the subject matter of the
complaints is compounded, subject to the payment of cost of INR 5,000/- in
both CC No. 542/2016 and CC No. 932/2016, to be deposited with the Delhi
Police Welfare Fund.
7. Proof of deposit of cost to be submitted with the Trial Court.
CRL.REV.P. 518/2019 & CRL.REV.P. 519/2019 Page 4 of 5
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 19/04/2025 at 01:07:32
8. Subject to above, the sureties and the FDRs deposited with the Trial
Court are directed to be released.
9. With the above directions, the present petitions, along with pending
applications, are disposed of.
SANJEEV NARULA, J
APRIL 17, 2025
as
CRL.REV.P. 518/2019 & CRL.REV.P. 519/2019 Page 5 of 5
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 19/04/2025 at 01:07:32