Amicable settlement in cheque dishonour prosecution justified quashing of conviction under inherent criminal jurisdiction.

In a prosecution under the Negotiable Instruments Act, the Gujarat HC treated an admitted amicable settlement, supported by a written compromise and the complainant's affidavit confirming receipt of the settled amount and no further grievance, as a genuine basis for compounding. Relying on the compounding scheme under Section 147 and the inherent power under Section 482 CrPC, the Court held that continuation of the criminal proceedings would serve no useful purpose and would not advance justice. The application was allowed and the conviction order was quashed and set aside.

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Issues: Whether, in view of an admitted amicable settlement between the parties in a prosecution under Section 138 of the Negotiable Instruments Act, 1881, the order of conviction could be quashed in exercise of inherent powers under Section 482 of the Code of Criminal Procedure, 1973.

Analysis: The parties placed on record a written settlement, and the complainant filed an affidavit confirming receipt of the settled amount and expressing no grievance against further prosecution. The statutory scheme of Section 147 of the Negotiable Instruments Act, 1881 permits compounding of the offence, and the Court treated the compromise as genuine. In such circumstances, continuation of the criminal proceedings would serve no useful purpose and the inherent jurisdiction could be invoked to secure the ends of justice.

Conclusion: The application was allowed and the impugned order of conviction was quashed and set aside.

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