HC allowed compounding of offence under Section 138 of ...
Legal Settlement Resolves Cheque Bounce Case: Section 138 Compounded, Conviction Quashed After Mutual Agreement
April 15, 2025
Case Laws Indian Laws HC
HC allowed compounding of offence under Section 138 of Negotiable Instruments Act, 1881, following mutual settlement between petitioner-accused and complainant. The Court exercised discretion under Section 147, overriding general CrPC provisions, and accepted the compromise deed. The impugned judgment of conviction and sentencing order were quashed, effectively acquitting the petitioner-accused. The Court emphasized that compounding is permissible even post-conviction when both parties mutually agree to settlement, consistent with precedential guidelines from apex judicial interpretations.
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