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Issues: Whether the offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded at the revision stage on the basis of compromise and payment of the cheque amount, and whether the conviction and sentence were liable to be set aside on such compounding.
Analysis: The revision was founded on a compromise between the parties, and the complainant confirmed receipt of the cheque amount with interest and expressed no objection to disposal in terms of the compromise. The governing principle applied was that offences under the Negotiable Instruments Act are compoundable at any stage, and where the dispute is settled, the conviction under Section 138 ordinarily should not survive. The Court also applied the Supreme Court guidelines requiring a cost where compounding is sought at a belated stage before the High Court in revision or appeal.
Conclusion: The offence was permitted to be compounded on the basis of the compromise, and the conviction and sentence were directed to be set aside upon deposit of 15% of the cheque amount as costs within the stipulated time.
Final Conclusion: The revision succeeded on compromise, with conditional relief that the earlier conviction would stand annulled after compliance with the cost direction.
Ratio Decidendi: An offence under Section 138 of the Negotiable Instruments Act, 1881 may be compounded even at the revision stage, and once the complainant has been compensated and the compromise is accepted, the conviction should be set aside, subject to costs in accordance with the governing compounding guidelines.
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