Delayed compounding in cheque dishonour matters can reduce sentence, subject to graded costs and compliance with settlement terms.

In a revision arising from conviction for cheque dishonour, the parties settled the monetary dispute before the revisional court and the complainant acknowledged receipt of the cheque amount, leaving no surviving liability issue. Applying the guidelines on delayed compounding in Section 138 matters, the Court treated the late compromise as attracting graded costs and required deposit of 3% of the cheque amount with the State Legal Services Authority. On compliance, the sentence was modified to the period already undergone and release was directed; default would revive the original sentence.

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Issues: Whether, in a revision arising from conviction under Section 138 of the Negotiable Instruments Act, 1881, the sentence could be modified to the period already undergone on the basis of compromise between the parties, and whether costs ought to be imposed for belated compounding.

Analysis: The parties arrived at an amicable settlement before the revisional court and the complainant ed receipt of the cheque amount, leaving no surviving dispute on the monetary liability. The Court applied the guidelines governing delayed compounding in cheque dishonour matters and treated the compromise at the revision stage as attracting the graded costs mechanism. In view of the stage at which the settlement was reached, the Court required payment of 3% of the cheque amount as costs to the State Legal Services Authority and directed that, on such deposit, the sentence would stand reduced to the period already undergone.

Conclusion: The sentence was modified in favour of the applicant, subject to deposit of 3% of the cheque amount as costs, with release ordered on compliance and revival of the original sentence on default.

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