Cheque dishonour offences remain compoundable after conviction when the parties settle and the complainant consents to compounding.

An offence under Section 138 of the Negotiable Instruments Act, 1881 remains compoundable even after conviction and appellate affirmation if the parties settle the dispute and the complainant consents to compounding under Section 147. The High Court accepted the compromise after the accused deposited the settled amount in full and final settlement and the complainant raised no objection. Applying the statutory override in Section 147, the Court held that the offence could be compounded notwithstanding the general scheme of Section 320 CrPC. The conviction and sentence were set aside, and the accused was acquitted.

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Issues: Whether the offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded after conviction and appellate affirmation on the basis of compromise and deposit of the settled amount.

Analysis: The petitioner deposited the entire compensation amount as full and final settlement, and the complainant expressed no objection to compounding. The Court applied Section 147 of the Negotiable Instruments Act, 1881, which makes offences under the Act compoundable notwithstanding the general scheme of Section 320 of the Code of Criminal Procedure, 1973. Relying on the settled law governing compounding of cheque dishonour cases, the Court accepted the compromise despite the prior conviction and appellate order.

Conclusion: The offence was validly compounded, and the conviction and sentence were set aside, resulting in the petitioner's acquittal under Section 138 of the Negotiable Instruments Act, 1881.

Ratio Decidendi: An offence under Section 138 of the Negotiable Instruments Act, 1881 remains compoundable even after conviction and appellate affirmation if the parties settle the matter and the complainant consents to compounding under Section 147 of the Act.

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