Cheque dishonour compromise allowed in revision, with conviction quashed after voluntary settlement and compounding

A bona fide compromise in a cheque dishonour matter can be given effect in revisional proceedings where the settlement is voluntary, supported by independent witnesses, and free from threat or undue influence. The offence was treated as predominantly compensatory, so restitution was preferred over punishment and the Court could secure the ends of justice by permitting compounding. On that basis, the conviction and sentence were quashed, subject to deposit of 15% of the cheque amount with the State Legal Services Authority.

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Issues: Whether the conviction under the cheque dishonour provision could be quashed in revision on the basis of a genuine compromise between the parties and by permitting compounding of the offence.

Analysis: The compromise was accepted as voluntary, without threat or undue influence, and supported by independent witnesses. The offence under the cheque dishonour provision was treated as having a compensatory character, with precedence to restitution over punishment. In revisional jurisdiction, the Court could give effect to a bona fide compromise and secure the ends of justice by permitting compounding, consistent with the governing legal position.

Conclusion: The conviction and sentence were quashed and the revision petition was allowed, subject to deposit of 15% of the cheque amount with the State Legal Services Authority.

Ratio Decidendi: A bona fide compromise in a cheque dishonour case may be acted upon in revisional proceedings to permit compounding and quash the conviction, as the offence is predominantly compensatory in nature.

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