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‘Continued proceedings would be unjust’: Punjab and Haryana High Court acquits man in NI Act case 7 years after conviction

The petitioner was earlier ordered to serve one year’s imprisonment and asked to pay compensation of Rs 8 lakh to the complainant.

3 min readChandigarhMay 2, 2026 05:35 PM IST

File photo of the Punjab and Haryana High Court.

The Punjab and Haryana High Court last month acquitted a man who was previously convicted in a Negotiable Instruments Act (cheque bounce) case but entered a compromise with the complainant seven years after his conviction.

Dismissing the conviction, the court stated that “continued proceedings would be non-productive and unjust in the given circumstances.”

The high court was hearing a petition filed by one Binod Kumar Yadav, who sought to set aside the order of conviction passed in May 2018, whereby he was ordered imprisonment for one year and asked to pay compensation of Rs 8 lakh to the complainant. Yadav’s appeal against conviction was earlier dismissed by the Additional Sessions Judge, Hisar, in August 2025.

The counsel for petitioner Yadav contended before the high court that during the pendency of proceedings, the petitioner and the complainant entered a compromise deed dated April 1, 2026, before the Mediation and Conciliation Centre of the high court, and in pursuance of the compromise deed, the petitioner also handed over a demand draft amounting to Rs 4 lakh in favour of the complainant.

The petitioner’s counsel urged that the matter may be compounded and the petitioner be acquitted of the charges framed against him in light of the compromise deed.

The counsel for the complainant also vouched for the genuineness of the compromise and contended that he has no objection if the offence is permitted to be compounded and the petitioner is acquitted.

Mentioning the statutory provision of Section 359 of BNSS, 2023, (Section 320 of CrPC, 1973) and Section 147 of Negotiable Instruments Act, 1881, when examined along with Section 528 of BNSS, 2023, Justice Sumeet Goel cited Supreme Court judgments which stated that the offence under Section 138 of Negotiable Instruments Act, 1881, can be compounded at all stages of litigation, including when the matter has reached the high court after having been conclusively dealt with by the magisterial as also the sessions court.

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Justice Goel thus stated, “…such an offence can be compromised/compounded even after the petitioner-accused has been convicted by the Court of a learned Magistrate and his appeal against the same has been dismissed by the learned Sessions Court…”

The bench also noted, “…It is, however, imperative to bear in mind that discretion to waive the imposition of costs is not to be invoked as a matter of ordinary course. The exercise of such discretion must be predicated upon exceptional, compelling, and accentuating circumstances which, in the considered opinion of the concerned Court seized of the matter, warrant deviation from the general rule of imposition of cost. The Court, while invoking such discretion, must record clear, cogent and reasoned findings delineating the special factors that justify the waiver…”

Jagpreet Singh Sandhu

Jagpreet Singh Sandhu is a Senior Correspondent at The Indian Express, based in Chandigarh. He is a veteran reporter with over a decade of experience, specializing in legal, crime, and environmental reporting across the tri-city area (Chandigarh, Mohali, and Panchkula). Professional Background Core Beat: He primarily covers the Punjab and Haryana High Court, District Courts, CBI Courts, and Consumer Commissions. His legal reporting is known for breaking down complex judgments and tracking long-standing criminal cases. Environmental Reporting: Jagpreet has become a key voice in reporting on the deteriorating air quality and weather patterns in the Punjab-Haryana region. Crime & Technology: He frequently reports on cybercrime, digital arrest scams, and the intersection of technology and law enforcement, such as the development of citizen-centric policing apps. Recent Notable Articles (Late 2025) His late 2025 coverage has focused on significant judicial verdicts, major financial scams, and public health concerns: 1. Legal & CBI Court Verdicts "12 years on, CBI court acquits Haryana judge, parents in wife’s death case" (Dec 17, 2025): Detailed coverage of the acquittal of a judicial officer in a high-profile dowry death case from 2013. "‘Wicked & evil mind’: Court gives man 30-year term for kidnapping, sexually assaulting 8-year-old" (Dec 16, 2025): A report on a stern judgment from a Chandigarh district court in a POCSO case. "Man acquitted in rape case after victim found ‘very happy’ in wedding reception" (Dec 9, 2025): Covering a unique legal observation regarding consensual relationships and age verification. 2. Investigative & Scams "CBI registers FIR in Rs 1.14-cr Patient Welfare Grant scam at PGIMER" (Dec 19, 2025): An exposé on how funds meant for poor patients were siphoned off through forged documents and a photocopy shop inside the PGIMER campus. "Month-long torture, Rs 85 lakh transfers: How ‘Innocence Certificate’ led to a ‘digital arrest’ of an elderly couple" (Dec 12, 2025): Detailing a sophisticated cyber fraud targeting senior citizens in Chandigarh. 3. Environment & Public Safety "Panchkula air turns ‘very poor’, fourth worst in country" (Dec 22, 2025): Reporting on the sudden spike in pollution levels in Panchkula compared to neighbouring cities. "Soon, you can snap that overspeeding car, and report to Chandigarh Police" (Dec 16, 2025): Breaking news on a new mobile application being developed to allow citizens to report traffic violations via geo-tagged photos. 4. Gangster Culture & Crime "City Beautiful in the crosshairs of gangsters" (Dec 14, 2025): A feature analysis of how Chandigarh has increasingly become a staging ground for extortion and rivalries between gangster modules. "Shooters wanted for Parry murder held by Delhi Police Special Cell" (Dec 18, 2025): Following the developments in a high-profile murder case in Chandigarh’s Sector 26. Signature Style Jagpreet is recognized for his tenacious follow-up on cold cases and his ability to report on courtroom drama with a focus on victim rights. His work often highlights administrative lapses, whether in the handling of patient welfare funds or the enforcement of environmental standards. ... Read More

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Punjab and Haryana High Court

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