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<h1>Conviction Overturned After Settlement in Negotiable Instruments Act Case; Offense Compounded After Payment.</h1> The SC set aside the appellant's conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881, following a settlement between the ... Dishonour of Cheque - conviction of appellant - compromise of matters between the parties - HELD THAT:- Having perused the averments made in Criminal Miscellaneous Petition filed by the applicant-appellant, as also the statement made by respondent No.1-complainant in the affidavit dated 08.11.2019, more particularly keeping in view the settlement arrived at between the parties, the application(s) is allowed and the conviction and sentence of two years’ rigorous imprisonment with fine of Rs.5,000/- awarded to the appellant under Section 138 of the Negotiable Instruments Act, 1881 by the trial court as affirmed by the appellate court and the High Court, is set aside. Appeal disposed off. Issues involved: Modification of court's order, appeal against conviction under Section 138 of the Negotiable Instruments Act, 1881, settlement between parties.Modification of Court's Order: The applicant filed an application for modification of the Court's Order dated 27.09.2019. The Court recalled the previous order after considering the material on record and granted leave.Appeal Against Conviction: The appeal was directed against the judgment and order of the trial court convicting the appellant under Section 138 of the Negotiable Instruments Act, 1881, and awarding a sentence of two years' rigorous imprisonment with a fine of Rs.5,000. The High Court upheld the trial court's decision, which led to the appeal to the Supreme Court.Settlement Between Parties: The applicant-appellant filed an application seeking modification of the order, stating that a settlement had been reached between the parties. The appellant had paid the complainant the agreed sum along with interest, and the complainant filed for compounding of the offence. The complainant expressed satisfaction with the amount received and did not wish to pursue the matter further. The Court, after reviewing the application and the complainant's affidavit, allowed the application, setting aside the conviction and sentence imposed on the appellant under Section 138 of the Negotiable Instruments Act, 1881.The appeal was disposed of accordingly, and the Miscellaneous Application and Interlocutory Application were also disposed of in the same terms.
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