Compounding of cheque dishonour offence leads to quashing of conviction and appellate order after settlement and payment.

The dispute was amicably settled between the parties, and the cheque amount had already been paid to the complainant. On the basis of the settlement deed on record, the offence under section 138 of the Negotiable Instruments Act was treated as compounded. As the underlying controversy stood resolved, the High Court found no reason to sustain the conviction or the appellate order, and quashed both orders in favour of the accused.

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Issues: Whether the revisional application should be allowed and the conviction and appellate order should be quashed after the parties settled the dispute and the cheque amount was paid.

Analysis: The dispute stood amicably resolved between the parties, and the cheque amount had already been paid to the complainant. In view of the settlement deed produced on record, the offence under section 138 of the Negotiable Instruments Act was treated as compounded. Consequently, there was no reason to sustain the orders passed by the courts below.

Conclusion: The application was allowed, the offence was compounded, and the impugned judgment and order of conviction as well as the appellate order were quashed and set aside in favour of the accused.

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