Compromise in cheque dishonour case led to setting aside conviction and acquittal, subject to costs deposit.

In a cheque dishonour matter under the Negotiable Instruments Act, the High Court accepted that the parties had amicably settled the dispute and executed consent terms, with the complainant confirming receipt of the settlement amount and raising no objection to setting aside the conviction. On that basis, the Court interfered with the concurrent convictions and acquitted the accused, while directing deposit of costs with the State Legal Services Authority within six weeks as a condition attached to the compromise-based relief.

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Issues: Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881, could be set aside in view of the parties' amicable settlement and consent terms, and whether the accused should be acquitted on payment of costs.

Analysis: The parties informed the Court that their dispute had been amicably resolved and that consent terms had been executed. The complainant confirmed receipt of the settlement amount and stated that it had no objection to setting aside the conviction. The Court treated the settlement as a sufficient basis to interfere with the concurrent convictions, while also directing deposit of costs with the State Legal Services Authority in accordance with the principles governing compromise in cheque dishonour matters.

Conclusion: The conviction recorded by the trial court and affirmed in appeal was set aside, and the applicant was acquitted, subject to deposit of costs with the State Legal Services Authority within six weeks.

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