Compounding of cheque dishonour offences after conviction is permissible when compensation is deposited and the complainant consents.

A conviction under Section 138 of the Negotiable Instruments Act can be compounded at the revisional stage where the accused has deposited the full compensation amount and the complainant consents to compounding. The court applied the statutory power under Section 147 and accepted the request despite the prior conviction, directing release of the deposited amount to the complainant. On that basis, the conviction and sentence were set aside and the accused was acquitted.

---

---

Issues: Whether a conviction under Section 138 of the Negotiable Instruments Act, 1881 can be compounded at the revisional stage after the accused deposits the entire compensation amount and the complainant consents to such compounding.

Analysis: The entire compensation amount awarded by the courts below stood deposited with the trial court. The complainant expressed readiness to compound the matter on release of the deposited amount. In view of the statutory power to compound offences under Section 147 of the Negotiable Instruments Act, 1881, the Court accepted the request for compounding notwithstanding the prior conviction, and directed release of the deposited amount to the complainant.

Conclusion: The offence was validly compounded, the conviction and sentence were set aside, and the accused stood acquitted.

Ratio Decidendi: An offence under Section 138 of the Negotiable Instruments Act, 1881 may be compounded even after conviction when the complainant consents and the compensatory amount has been paid or deposited.

---