Compounding of cheque dishonour offences is allowed at the revisional stage after settlement, with conviction and sentence quashed.

Offences under Section 138 of the Negotiable Instruments Act, 1881 may be compounded at the revisional stage after conviction and affirmation in appeal where the parties have amicably settled the dispute. As the compromise amount had been paid or agreed to be paid, the Court accepted compounding under Section 147 and quashed the convictions and sentence, resulting in acquittal of the accused.

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Issues: Whether the offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded in revision after conviction and sentence had been affirmed by the appellate court, and whether the conviction and sentence were liable to be set aside on the basis of settlement between the parties.

Analysis: The petitioner and the complainant informed the Court that the dispute had been amicably settled and that the compensation amount awarded by the courts below had been paid or was agreed to be paid. The Court held that Section 147 of the Negotiable Instruments Act, 1881 permits compounding of the offence, including after conviction, and relied upon the governing principle that such offences may be compounded even at the revisional stage where the parties have resolved the dispute. Since the entire amount payable under the compromise stood satisfied, there was no impediment to accepting the prayer for compounding.

Conclusion: The offence was compounded, the judgments of conviction and sentence were quashed, and the petitioner was acquitted of the charge under Section 138 of the Negotiable Instruments Act, 1881.

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