Compromise in cheque-dishonour prosecution accepted after full settlement, with sentence substituted by the amount already paid.

In a prosecution under Section 138 of the Negotiable Instruments Act, the High Court accepted a compromise reached during revision after the complainant received the settled amount in full. Applying the principles governing inherent powers to prevent abuse of process and secure the ends of justice, the Court treated the dispute as one arising from a commercial transaction with a civil flavour and noted that continued proceedings would serve no useful purpose once the complainant had been duly compensated. The matter was therefore brought to an end, and the substantive sentence was modified by substituting it with the amount already paid under the settlement.

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Issues: Whether, in a prosecution under Section 138 of the Negotiable Instruments Act, 1881, the revision petition could be disposed of on the basis of compromise and the sentence modified after the complainant had received the settled amount.

Analysis: The parties settled the entire claim during the pendency of the revision and the petitioner paid the agreed amount in full. The Court relied on the principles governing exercise of inherent powers to prevent abuse of process and secure the ends of justice, and on the statutory power to accept settlement in cheque-dishonour matters. It also followed the settled position that disputes arising from commercial or financial transactions with a civil flavour may be terminated where the complainant has been duly compensated and the continuation of proceedings would serve no useful purpose. In that background, the Court treated the compromise as sufficient to close the matter and to substitute the substantive sentence with the amount already paid.

Conclusion: The compromise was accepted and the substantive sentence was modified and substituted by the amount of Rs. 1,10,000/- already paid by the petitioner.

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