Compounding of cheque dishonour offence was permitted on voluntary settlement, leading to setting aside of conviction and sentence.

An offence under Section 138 of the Negotiable Instruments Act, 1881 is compoundable in revision despite Section 320 of the Code of Criminal Procedure where the special statute contains no express bar and the parties have voluntarily settled the dispute. Section 320 governs compounding in the manner provided by the Code, while Section 4(2) permits offences under special laws to be dealt with under the special enactment subject to the Code. On the complainant's statement that the cheque amount was received and the compromise was voluntary, compounding was permitted in the interest of justice, and the conviction and sentence were set aside.

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Issues: Whether the offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded in revision notwithstanding Section 320 of the Code of Criminal Procedure, and whether the conviction and sentence were liable to be set aside on compromise.

Analysis: The offence under Section 138 of the Negotiable Instruments Act is an offence under a special law. Section 320 of the Code of Criminal Procedure governs compounding of offences in the manner there provided, while Section 4(2) of the Code permits offences under other laws to be dealt with in accordance with the special enactment, subject to the Code. The Negotiable Instruments Act contains no prohibition against compounding such an offence. In the absence of an express bar, and where the complainant states that the cheque amount has been received and the parties have settled voluntarily, compounding can be permitted in the interest of justice.

Conclusion: The offence was legally compoundable, and the conviction and sentence were set aside by allowing the compromise; the petitioner was acquitted of the offence under Section 138 of the Negotiable Instruments Act, 1881.

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