Compounding of cheque dishonour offence under the Negotiable Instruments Act can be accepted in revision despite earlier conviction.

Section 147 of the Negotiable Instruments Act was treated as making offences under the Act compoundable notwithstanding the restrictions in Section 320 of the Code of Criminal Procedure. On that basis, a compromise reached between the parties was accepted at the revisional stage when the complainant confirmed receipt of the settled amount and consented to compounding. The stage of proceedings, the date of the offence, and the earlier conviction were considered irrelevant under the statutory scheme. The conviction and sentence under Section 138 were therefore quashed and the accused was acquitted on compounding.

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Issues: Whether the conviction under Section 138 of the Negotiable Instruments Act could be set aside in revision on the basis of compromise between the parties after insertion of Section 147 of the Act, and whether the stage of proceedings or the date of offence or first conviction affected the power to compound.

Analysis: Section 147 of the Negotiable Instruments Act makes every offence under the Act compoundable notwithstanding anything contained in the Code of Criminal Procedure, 1973. The provision was treated as overriding the restrictions ordinarily applicable under Section 320 of the Code of Criminal Procedure, 1973. Since the complainant appeared before the Court and confirmed receipt of the settled amount and compounding of the dispute, the compromise was accepted at the revisional stage. The date of offence or the earlier conviction was held to be irrelevant in view of the statutory scheme.

Conclusion: The conviction and sentence for the offence under Section 138 of the Negotiable Instruments Act were quashed and the accused was acquitted on the basis of compounding.

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