Compounding of cheque dishonour offence after conviction permitted where compensation is secured and complainant consents.

An offence under Section 138 of the Negotiable Instruments Act could be compounded under Section 147 even after conviction and dismissal of the appeal, where the accused had deposited the full compensation and the complainant raised no objection to release of that amount. Applying the Supreme Court's principles on compounding, the Court treated the compensatory payment as secured and found no impediment to granting consequential relief. The conviction and sentence under Section 138 were therefore quashed and the accused was acquitted.

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Issues: Whether the offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded after conviction and dismissal of the appeal, and whether the conviction and sentence were liable to be set aside on payment of the compensation amount.

Analysis: The accused deposited the entire compensation amount and expressed willingness to have it released in favour of the complainant. The complainant raised no objection to compounding if the deposited amount was released. In view of Section 147 of the Negotiable Instruments Act, 1881 and the principles governing compounding laid down by the Supreme Court, the offence could be compounded even after conviction. Once the parties agreed and the compensation stood secured, there was no impediment to allowing compounding and granting consequential relief.

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

Ratio Decidendi: An offence under Section 138 of the Negotiable Instruments Act, 1881 may be compounded under Section 147 even after conviction, where the complainant consents and the compensatory amount is secured.

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