Post-conviction compounding in cheque dishonour cases is permitted when the complainant is fully satisfied and consents to settlement.

An offence under Section 138 of the Negotiable Instruments Act, 1881 may be compounded even after conviction where the complainant has received full satisfaction of the awarded compensation and consents to compounding under Section 147. On that basis, the High Court accepted the parties' settlement, set aside the conviction and sentence, and treated the matter as ending in acquittal. The decision reflects that post-conviction compounding is available when the complainant's claim has been fully satisfied and no objection remains to grant relief.

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Issues: Whether an offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded after conviction and sentence when the complainant had received the entire compensation amount and had no objection to compounding.

Analysis: The parties settled their dispute and the complainant acknowledged receipt of the entire compensation awarded by the trial court. In view of Section 147 of the Negotiable Instruments Act, 1881 and the principle that an offence under Section 138 can be compounded even after conviction, the Court accepted the request for compounding. The Court also noticed that the settlement had fully satisfied the complainant's claim, leaving no impediment to grant relief.

Conclusion: The offence was compounded and the conviction and sentence were set aside, resulting in acquittal of the petitioner.

Final Conclusion: Settlement and full payment of the awarded amount justified post-conviction compounding, with the criminal proceedings ending in acquittal and ancillary costs imposed on the accused.

Ratio Decidendi: An offence under Section 138 of the Negotiable Instruments Act, 1881 may be compounded even after conviction when the complainant has received full satisfaction and consents to compounding under Section 147 of the Act.

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