Compounding of cheque dishonour offences at revisional stage can nullify conviction when parties settle the dispute.

An offence under Section 138 of the Negotiable Instruments Act can be compounded at the revisional stage where the parties settle the dispute and the complainant accepts payment of the cheque amount. Applying Section 320 CrPC, the High Court recognised the compromise, set aside the judgments of the courts below, and held that the conviction could not survive once compounding was permitted. The accused was therefore acquitted.

---

---

Issues: Whether the offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded at the revisional stage on the basis of a compromise between the parties, leading to setting aside of the conviction and acquittal of the accused.

Analysis: The parties settled the dispute during the pendency of the revision petition, the complainant accepted payment of the cheque amount through demand drafts and consented to compounding. The High Court held that compounding of offences could be permitted at the revisional stage under Section 320 of the Code of Criminal Procedure, 1973. In view of the compromise, the judgments of the courts below were set aside and the conviction could not survive.

Conclusion: The offence was compounded and the accused was acquitted of the charge under Section 138 of the Negotiable Instruments Act, 1881.

Final Conclusion: The revision petition succeeded on the basis of compromise, resulting in the nullification of the conviction and the accused's acquittal.

Ratio Decidendi: An offence that is legally compoundable may be permitted to be compounded even at the revisional stage when the parties have settled the dispute, and the conviction cannot be sustained thereafter.

---