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Issues: Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881 could be given effect to on compromise at the revision stage by compounding the offence, imposing costs, and modifying the sentence.
Analysis: The parties placed a compromise before the Court and the complainant accepted receipt of the settled amount and raised no objection to compounding. Section 147 of the Negotiable Instruments Act, 1881 permits compounding, and the guidelines governing delayed compounding in cheque dishonour matters require payment of graded costs where the settlement is reached at the revision stage. In view of the compromise and the stage at which it was entered, costs quantified at 2% of the cheque amount were directed to be deposited with the State Legal Services Authority, and the sentence was modified to the period already undergone, with the consequence that the original sentence would revive on failure to deposit the costs.
Conclusion: The offence was treated as compounded subject to deposit of costs, and the revision was allowed to the extent of modifying the sentence in favour of the petitioner.
Final Conclusion: The conviction was not interfered with on merits, but the matter was resolved on compromise with a conditional reduction of sentence and consequential relief tied to payment of costs.
Ratio Decidendi: In cheque dishonour cases, a compromise arrived at in revision may be accepted under Section 147 of the Negotiable Instruments Act, 1881 with graded costs, and the sentence may be modified accordingly.
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