Post-conviction compounding in cheque dishonour cases may extinguish conviction, with reduced compounding costs on recorded reasons.

Offences under Section 138 of the Negotiable Instruments Act remain compoundable at the revisional stage on a genuine compromise, even after conviction. Where the complainant consents and the settlement is recorded during revision, the conviction and sentence may be set aside and the accused acquitted. The court may also reduce the compounding fee from the usual graded cost structure if reasons are recorded, including the accused's financial condition and the facts of the case.

---

---

Issues: Whether an offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded after conviction on the basis of a compromise between the parties, and whether the compounding fee could be reduced in the facts of the case.

Analysis: The parties had settled the dispute during the pendency of the revision petition, and the complainant expressly consented to compounding. Section 147 of the Negotiable Instruments Act, 1881 makes offences under that Act compoundable notwithstanding the scheme of Section 320 of the Code of Criminal Procedure, 1973. The Court applied the principles governing post-conviction compounding and the graded cost framework for compounding at the revisional stage, while also taking into account the petitioner's financial condition.

Conclusion: The offence was permitted to be compounded after conviction, the conviction and sentence were set aside, and the petitioner was acquitted. The compounding fee was reduced to a token amount.

Final Conclusion: A post-conviction compromise in a cheque dishonour case was accepted, leading to quashing of the conviction and sentence and resulting in acquittal, with reduced compounding costs.

Ratio Decidendi: Offences under Section 138 of the Negotiable Instruments Act, 1881 remain compoundable at the revisional stage on a genuine compromise, and the court may, for recorded reasons, depart from the standard compounding costs in an appropriate case.

---