Compounding of cheque offence upheld after genuine compromise and full settlement, leading to acquittal.

Compounding of a Negotiable Instruments Act offence was allowed where the parties filed a joint memo showing an amicable settlement and full payment in final settlement. The compromise was verified in open court and accepted as genuine, and the dispute was treated as essentially private with no further wish to prosecute. On that basis, the Court applied the settled principle that inherent jurisdiction may be used to terminate proceedings to secure the ends of justice. The conviction and appellate affirmation were set aside, and the accused was acquitted.

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Issues: Whether the conviction for an offence under the Negotiable Instruments Act could be set aside and the offence compounded on the basis of compromise between the parties.

Analysis: The parties placed a joint memo showing that the monetary dispute had been amicably settled and that the accused had paid the agreed amount in full and final settlement. The Court relied on the principles governing the exercise of inherent jurisdiction in settled matters, namely that where the dispute is essentially private and the complainant no longer wishes to prosecute, continuation of proceedings may be terminated to secure the ends of justice. The compromise was verified in open court and accepted as genuine.

Conclusion: The offence was permitted to be compounded, the compromise was recorded, the conviction and appellate affirmation were set aside, and the accused was acquitted.

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