Compounding of cheque dishonour offence in revision is permitted on genuine settlement, leading to acquittal.

An offence under Section 138 of the Negotiable Instruments Act may be compounded at the revisional stage when the parties have entered into a voluntary and complete settlement. The text states that Section 147 of the Act permits compounding notwithstanding the Criminal Procedure Code, and that composition of the offence operates as an acquittal under Section 320 of the Code of Criminal Procedure. On the admitted payment and confirmation that nothing remained due, the revision court gave effect to the compromise, set aside the conviction and sentence, and acquitted the accused.

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Issues: Whether an offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded in revision on the basis of a voluntary compromise between the parties, leading to setting aside of the conviction and acquittal of the accused.

Analysis: The dispute was shown to have been amicably settled during the pendency of the revision petition, and the legal representative of the complainant confirmed receipt of payment and that nothing remained due. The statutory scheme under Section 147 of the Negotiable Instruments Act, 1881 makes offences under the Act compoundable notwithstanding the Criminal Procedure Code, and the composition of an offence operates as an acquittal under Section 320 of the Code of Criminal Procedure, 1973. A revision court can give effect to such compounding when the settlement is voluntary and complete.

Conclusion: The offence was permitted to be compounded, the conviction and sentence were set aside, and the petitioner was acquitted.

Ratio Decidendi: An offence under Section 138 of the Negotiable Instruments Act, 1881 may be compounded at the revisional stage on a genuine settlement between the parties, and such composition results in acquittal of the accused.

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