Genuine compromise can justify compounding in cheque dishonour cases and set aside conviction in revisional jurisdiction.

A genuine, voluntary and fully acted-upon compromise in a cheque dishonour matter under Section 138 of the Negotiable Instruments Act, 1881 can justify compounding in revisional jurisdiction. The revisional court may invoke Section 147 of the Negotiable Instruments Act read with Section 320(6) of the Code of Criminal Procedure, 1973 to secure the ends of justice and treat the offence as compoundable in view of its compensatory character. On that basis, the conviction and sentence may be set aside, subject to compliance with the compromise terms, including any ordered deposit.

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Issues: Whether the conviction and sentence for dishonour of cheque under Section 138 of the Negotiable Instruments Act, 1881 could be set aside on the basis of a genuine compromise between the parties and compounding of the offence.

Analysis: The compromise was accepted as genuine, voluntary, and fully acted upon. The offence under Section 138 of the Negotiable Instruments Act, 1881 was treated as having a compensatory character, and the revisional Court exercised its power to secure the ends of justice by permitting compounding in terms of Section 147 of the Negotiable Instruments Act, 1881 read with Section 320(6) of the Code of Criminal Procedure, 1973. The Court also noted the settled position that a valid compromise can justify interference with the conviction and sentence in revisional jurisdiction.

Conclusion: The conviction and sentence were set aside and the revision was allowed on the basis of compromise, subject to deposit of Rs. 3000 within four weeks, failing which the revision would stand dismissed.

Ratio Decidendi: A genuine and voluntary compromise in a cheque dishonour case can be acted upon in revisional jurisdiction to compound the offence and set aside the conviction and sentence in the interests of justice.

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