Conviction Under Section 138 NI Act Set Aside After Parties Reach Settlement Through Court-Approved Compromise

HC exercised inherent powers to allow compounding of offense under Section 138 of Negotiable Instruments Act based on compromise between parties, despite conviction being upheld at appellate stage. While acknowledging that inherent powers must be used sparingly, HC determined intervention was justified to prevent miscarriage of justice and honor parties' settlement. Court addressed the challenge of late-stage compounding requests and lack of explicit guidance in Section 147 NI Act regarding timing and procedure for compounding. Criminal revision case disposed of per compromise terms, effectively nullifying earlier conviction and sentence. Decision emphasized courts' discretionary power to permit compounding when serving interests of justice, even post-conviction. .....

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