Compounding of cheque dishonour offence after settlement allowed recall of conviction and acquittal under the Negotiable Instruments Act.

A subsequent compromise and payment of the disputed amount supported recall of the earlier order dismissing the revision petition in a cheque dishonour matter. Relying on Section 147 of the Negotiable Instruments Act, the Court noted that an offence under Section 138 can be compounded at any stage. On that basis, the earlier order was recalled, the conviction and sentence were set aside, and the accused was acquitted.

---

---

Issues: Whether the order dismissing the revision petition and affirming the conviction and sentence could be recalled on the basis of a subsequent compromise between the parties and whether the offence under the Negotiable Instruments Act could be compounded at that stage.

Analysis: The parties placed the compromise before the Court and it was shown that the disputed amount had been paid. Section 147 of the Negotiable Instruments Act enables compounding of the offence under Section 138 at any stage. In view of the settlement and the legal position relied upon, the earlier order dismissing the revision petition was treated as liable to be recalled and the conviction and sentence based on the dishonoured cheque complaint could not stand.

Conclusion: The application was allowed, the earlier order was recalled, the conviction and sentence were set aside, and the petitioner was acquitted of the offence under Section 138 of the Negotiable Instruments Act.

---