Compounding of cheque dishonour offence in revision permitted on voluntary settlement, leading to acquittal and setting aside of conviction.

Offences under Section 138 of the Negotiable Instruments Act can be compounded during revision where the parties voluntarily settle the dispute and the complainant consents to acquittal. Section 147 makes such offences compoundable notwithstanding the Code of Criminal Procedure, and composition has the effect of acquittal under Section 320(8) CrPC. The revisional court may therefore allow compounding within its revisional jurisdiction. On that basis, the conviction and sentence were set aside 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 in revision on the basis of a voluntary compromise between the parties, leading to acquittal of the accused.

Analysis: The dispute stood settled during the pendency of the revision and the complainant confirmed receipt of the cheque amount and expressed no objection to the acquittal. Section 147 of the Negotiable Instruments Act, 1881 makes offences under the Act compoundable notwithstanding the Code of Criminal Procedure, and composition of an offence has the effect of acquittal under Section 320(8) of the Code of Criminal Procedure, 1973. The revision court can permit compounding in exercise of revisional jurisdiction.

Conclusion: The offence was permitted to be compounded and the conviction and sentence were set aside. The accused was acquitted.

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