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Issues: (i) Whether dismissal of the earlier special leave petition in limine by a non-speaking order resulted in merger so as to bar further relief in the present proceedings; (ii) Whether the offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded after conviction and sentence on the basis of compromise and full payment of compensation.
Issue (i): Whether dismissal of the earlier special leave petition in limine by a non-speaking order resulted in merger so as to bar further relief in the present proceedings.
Analysis: The earlier dismissal of the special leave petition without reasons did not attract the doctrine of merger. A non-speaking dismissal of special leave leaves the order under challenge unaffected in law for the purpose of merger, and the High Court retained jurisdiction to examine the request for relief in the present petition. The Court treated the prior dismissal as not foreclosing consideration of compounding on the basis of subsequent settlement.
Conclusion: The doctrine of merger did not bar the present proceedings, and the petition was maintainable.
Issue (ii): Whether the offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded after conviction and sentence on the basis of compromise and full payment of compensation.
Analysis: Section 147 of the Negotiable Instruments Act, 1881 is a special enabling provision with a non obstante clause, making offences under the Act compoundable notwithstanding the general restrictions under Section 320 of the Code of Criminal Procedure, 1973. The Court accepted that compounding can be permitted even after conviction, and that Section 362 of the Code of Criminal Procedure, 1973 does not stand in the way where compounding is authorised by a special law. Since the compromise was admitted and the entire compensation stood paid, no legal impediment remained to grant relief.
Conclusion: The offence was compoundable, and the conviction and sentence were set aside on compromise.
Final Conclusion: The compromise was accepted, the conviction and sentence under the cheque dishonour case were annulled, and the petitioner stood acquitted.
Ratio Decidendi: A non-speaking dismissal of an SLP does not result in merger or bar subsequent relief, and where a special statute expressly permits compounding, the offence may be compounded even after conviction notwithstanding the general procedural restriction against review or alteration of final judgments.
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