ALOK KUMARversusSTATE OF U.P. AND ANOTHER

          HIGH COURT OF JUDICATURE AT ALLAHABAD
                 APPLICATION U/S 528 BNSS No. - 6827 of 2026

Alok Kumar
                                                                  .....Applicant(s)
                                      Versus

State of U.P. and Another
                                                                      .....Opposite
                                                                            Party(s)

Counsel for Applicant(s)      : Abhay Kumar Shukla, Sanjay Mishra
Counsel for Opposite Party(s) : G.A.

Court No. - 73
                      HON'BLE DEEPAK VERMA, J.

1. Heard learned counsel for the applicant; learned A.G.A. for the State
and perused the record.

2. The present 528 B.N.S.S. application has been filed to quash the entire
proceedings of Complaint Case No.35835 of 2024 (Kamlesh Kumar
Sharma Vs. Alok Kumar), as well as impugned summoning order dated
23.01.2025, under Section 138 of N.I. Act, Police Station Srisaganj,
District Firozabad, pending in the court of Additional Chief Judicial
Magistrate, Firozabad.

3. It is submitted by learned counsel for applicant that there is money
dispute between the parties and opposite party no.2 has filed a complaint
under Section 138 of N.I. Act against the applicant. It is further submitted
that since there is some dispute regarding payment of money and as such,
there is a good chance of amicable settlement of dispute through
compromise.

4. Learned counsel for applicant has placed reliance on a judgment of
Hon'ble Apex Court in the case of Damodar S. Prabhu Vs. Sayed
Babalal H., reported in 2010 (5) SCC 663. The relevant paragraphs
no.17, 18 & 19 are quoted herein below:-

"17. In a recently published commentary, the following observations have been made
with regard to the offence punishable under Section 138 of the Act [Cited from: Arun
Mohan, Some thoughts towards law reforms on the topic of Section 138, Negotiable
                                                                  NA528 No. 6827 of 2026
                                     2


Instruments Act-Tackling an avalanche of cases (New Delhi: Universal Law
Publishing Co. Pvt. Ltd., 2009) at p. 5] :

"... Unlike that for other forms of crime, the punishment here (in so far as the
complainant is concerned) is not a means of seeking retribution, but is more a means
to ensure payment of money. The complainant's interest lies primarily in recovering
the money rather than seeing the drawer of the cheque in jail. The threat of jail is only
a mode to ensure recovery. As against the accused who is willing to undergo a jail
term, there is little available as remedy for the holder of the cheque.

If we were to examine the number of complaints filed which were `compromised' or
`settled' before the final judgment on one side and the cases which proceeded to
judgment and conviction on the other, we will find that the bulk was settled and only a
miniscule number continued."

18. It is quite obvious that with respect to the offence of dishonour of cheques, it is the
compensatory aspect of the remedy which should be given priority over the punitive
aspect. There is also some support for the apprehensions raised by the learned
Attorney General that a majority of cheque bounce cases are indeed being
compromised or settled by way of compounding, albeit during the later stages of
litigation thereby contributing to undue delay in justice delivery. The problem herein
is with the tendency of litigants to belatedly choose compounding as a means to
resolve their dispute.

19. As mentioned earlier, the learned Attorney General's submission is that in the
absence of statutory guidance, parties are choosing compounding as a method of last
resort instead of opting for it as soon as the Magistrates take cognizance of the
complaints. One explanation for such behaviour could be that the accused persons are
willing to take the chance of progressing through the various stages of litigation and
then choose the route of settlement only when no other route remains. While such
behaviour may be viewed as rational from the viewpoint of litigants, the hard facts are
that the undue delay in opting for compounding contributes to the arrears pending
before the courts at various levels. If the accused is willing to settle or compromise by
way of compounding of the offence at a later stage of litigation, it is generally
indicative of some merit in the complainant's case. In such cases it would be desirable
if parties choose compounding during the earlier stages of litigation. If however, the
accused has a valid defence such as a mistake, forgery or coercion among other
grounds, then the matter can be litigated through the specified forums."
                                                                                            NA528 No. 6827 of 2026
                                                                    3


                                    5. As requested by the counsel, it is directed that the accused may appear
                                    before the court below within a period of one month from today through
                                    the representing counsel and move an application seeking compounding
                                    of offence through compromise and deposit 10% of cheque amount. On
                                    such application being moved the concerned court may take adequate
                                    steps in accordance with law in this regard and shall provide further
                                    opportunity to the accused which shall not exceed a maximum period of
                                    four months from today to make an endeavour in this direction.
                                    Thereafter, the court shall pass necessary orders specifically keeping in
                                    view the law laid down by the Apex Court in the case of Damodar S.
                                    Prabhu (supra) within a period of five months from today.

                                    6. If the applicant does not appear before the trial court for compounding
                                    of offence through compromise, then he is required to appear and face the
                                    trial and the court shall be at liberty to proceed in accordance with law
                                    against the accused and take all necessary steps and measures to procure
                                    his attendance as the law permits.

                                    7. In the aforesaid period of five months or till the decision given in the
                                    light of the application, whichever is earlier, no coercive measures shall
                                    be adopted against the accused.

                                    8. It is further clarified that this order has been passed only with regard to
                                    the accused on behalf of whom this application has been moved in this
                                    Court.

                                    9. With the aforesaid observations this application is disposed off.



                                                                                             (Deepak Verma,J.)
                                    March 19, 2026
                                    Mini




Digitally signed by :-
MINI KANAUJIYA
High Court of Judicature at Allahabad