Compensatory cheque dishonour proceedings may be closed after full payment with interest, even without the complainant's consent.

In a prosecution under the Negotiable Instruments Act for cheque dishonour, the Court held that proceedings may be closed once the accused has deposited the cheque amount with interest and the complainant stands compensated, even without the complainant's consent. Applying the compensatory character of Section 138 recognised in Meters and Instruments, the Court treated payment of the full amount with assessed interest and costs as sufficient to satisfy the object of the proceedings. It further noted that the matter was at an early stage and that no useful purpose would be served by continuing it, so closure could be ordered under Section 143 of the Act read with Section 258 of the Criminal Procedure Code.

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Issues: Whether proceedings under Section 138 of the Negotiable Instruments Act, 1881 could be closed after the cheque amount with interest had been deposited by the accused, even without the complainant's consent.

Analysis: The deposit of the entire cheque amount with interest in compliance with the Court's interim order satisfied the compensatory purpose of the proceeding. Relying on the principle recognised in Meters and Instruments, the Court held that the offence under Section 138 is primarily compensatory and that, once the complainant has been duly compensated, the Court may close the proceedings in exercise of its powers under Section 143 of the Negotiable Instruments Act, 1881 read with Section 258 of the Code of Criminal Procedure, 1973, even if the complainant does not consent. The Court further noticed that the matter was still at an early stage and no useful purpose would be served by keeping it pending.

Conclusion: The issue was answered in favour of the petitioner. The Court held that the proceedings could be closed notwithstanding the complainant's refusal, once the cheque amount with interest stood paid.

Final Conclusion: The revision was allowed and the matter was sent back for further decision in accordance with the law laid down by the Supreme Court, after setting aside the order refusing permission to pay and close the matter.

Ratio Decidendi: In a prosecution under Section 138 of the Negotiable Instruments Act, 1881, once the accused has paid the cheque amount with assessed interest and costs so that the complainant stands compensated, the Court may close the proceedings under Section 143 of that Act read with Section 258 of the Code of Criminal Procedure, 1973, even without the complainant's consent.

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