Compensation in cheque dishonour cases can end proceedings where the complainant is fully paid, even without formal compounding.

In cheque dishonour proceedings under Section 138 of the Negotiable Instruments Act, the Court held that where the complainant has been duly compensated, the proceedings may be brought to an end in the interests of justice even if formal compounding is unavailable for want of consent. The petitioner produced an affidavit acknowledging receipt of the balance compensation, and the Court treated the compensatory purpose of the prosecution as satisfied. On that basis, the revision petition was allowed, the conviction and sentence were set aside, and the accused was acquitted.

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Issues: Whether the revision petition should be allowed and the conviction and sentence under Section 138 of the Negotiable Instruments Act should be set aside after the complainant had been compensated.

Analysis: The petitioner produced an affidavit acknowledging receipt of the balance compensation amount. The Court relied on the principle that proceedings under Section 138 are primarily compensatory in nature and that, even if formal compounding is not possible for want of consent, the Court may in the interests of justice close the proceedings and discharge the accused once it is satisfied that the complainant has been duly compensated. The Court applied the approach that the litigation should be brought to an end when complete compensation has been made and no further punitive purpose survives.

Conclusion: The revision petition was allowed, the convictions and sentence were set aside, and the petitioner was acquitted of the offence under Section 138 of the Negotiable Instruments Act.

Ratio Decidendi: In cheque dishonour proceedings, where the complainant has been duly compensated, the Court may, in the interests of justice, bring the proceedings to an end and set aside the conviction even if formal compounding is not available for want of consent.

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