Compounding of cheque dishonour complaints allowed through inherent power despite no complainant consent where compensation was paid

Section 138 dishonour proceedings may be compounded where the cheque amount and additional compensation have been deposited, and the High Court may use its inherent power under Section 482 CrPC to end the complaint even without the complainant's consent. Section 147 NI Act was treated as making the offence compoundable, and the Court held that the complainant's refusal did not prevent closure of the matter on the facts. The view that Section 258 CrPC does not apply to complaint cases did not curtail the Court's inherent jurisdiction. The proceedings were brought to an end because the complainant had been sufficiently compensated and imprisonment was considered unnecessary.

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Issues: Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881 could be set aside and the complaint compounded in exercise of the High Court's inherent powers even though the complainant did not consent, where the accused had deposited the cheque amount and an additional amount by way of compensation.

Analysis: Section 147 of the Negotiable Instruments Act, 1881 makes the offence compoundable, and the High Court's inherent jurisdiction under Section 482 of the Code of Criminal Procedure, 1973 is not excluded where the complainant has been adequately compensated. The refusal of the complainant to consent did not, on the facts of the case, prevent the Court from bringing the proceedings to an end. The Court also held that the observation relied upon regarding the inapplicability of Section 258 of the Code of Criminal Procedure, 1973 to complaint cases did not curtail the High Court's inherent power. In view of the petitioner's disability, the deposits already made, and the additional amount offered, the Court found that the complainant had been sufficiently compensated and that imprisonment was no longer necessary.

Conclusion: The complaint was compounded, the conviction and sentence were set aside, and the petitioner was acquitted.

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