Post-conviction compounding under the Negotiable Instruments Act is permitted where settlement is reached and compensation is fully paid.

An offence under Section 138 of the Negotiable Instruments Act can be compounded after conviction if the parties settle the dispute and the complainant receives the full compensation awarded. The High Court noted that Section 147 of the Act makes such offences compoundable notwithstanding the Code of Criminal Procedure, and that this compounding power overrides the limitation under Section 320 CrPC. As the settlement was voluntary and the complainant raised no objection, the Court permitted compounding, quashed the conviction and sentence, and the petitioner stood acquitted.

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Issues: Whether the offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded after conviction on the basis of a settlement between the parties and payment of the entire compensation amount.

Analysis: The parties had entered into a settlement during pendency of the revision, and the complainant ed receipt of the entire compensation awarded by the trial court and expressed no objection to compounding. Section 147 of the Negotiable Instruments Act, 1881 makes offences under the Act compoundable notwithstanding the Code of Criminal Procedure, 1973, and the Court applied the principle that compounding can be permitted even after conviction when the dispute has been settled. The Court also relied on the legal position that the scheme of compounding under Section 147 of the Negotiable Instruments Act, 1881 overrides the restriction under Section 320 of the Code of Criminal Procedure, 1973.

Conclusion: The offence was permitted to be compounded and the conviction and sentence were quashed, resulting in acquittal of the petitioner.

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