Post-conviction compounding of cheque dishonour offence allowed after settlement, payment, and no objection from the complainant.

Compounding of a cheque dishonour offence remained permissible even after conviction under the Negotiable Instruments Act had been affirmed, where the parties entered into a subsequent settlement, the cheque amount was paid, and the complainant raised no objection. The Court also noted compliance with the amount required under the applicable Supreme Court guidance for compounding. In the absence of opposition from the complainant or the prosecuting authority, the offence was compounded and the conviction orders were quashed and set aside.

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Issues: Whether, after the conviction under Section 138 of the Negotiable Instruments Act had been affirmed, the offence could still be compounded on the basis of a subsequent compromise between the parties and the conviction orders quashed.

Analysis: The application was founded on a post-conviction settlement under which the cheque amount had been paid and the complainant expressed no objection to compounding. The Court also noted that the applicant had deposited the amount required under the applicable Supreme Court guidance for compounding in such matters. In these circumstances, and considering the absence of opposition from the complainant and the prosecuting authority, the Court held that compounding of the offence was permissible even after confirmation of conviction.

Conclusion: The offence was permitted to be compounded and the conviction orders were quashed and set aside in favour of the applicant.

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