Cheque dishonour offence compoundable in revision when a genuine settlement is recorded and given effect under the Negotiable Instruments Act.

An offence under Section 138 of the Negotiable Instruments Act is compoundable at any stage, including in revision, because Section 147 gives overriding effect to compounding under the Act. Where the parties file a genuine joint compromise memo showing settlement of the cheque liability and payment of the agreed amount, the revisional court may give effect to that compromise to secure the ends of justice. On that basis, the conviction and sentence for cheque dishonour were set aside and the accused was treated as acquitted on compounding.

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Issues: Whether the conviction under Section 138 of the Negotiable Instruments Act could be nullified in revision on the basis of a compromise entered into between the parties.

Analysis: The parties placed a joint compromise memo on record showing settlement of the cheque liability and payment of the agreed amount to the complainant. Section 147 of the Negotiable Instruments Act gives overriding effect to compounding of offences under that Act, and the offence under Section 138 is compoundable at any stage. The Court held that the revisional court can, in an appropriate case, give effect to a genuine compromise to secure the ends of justice, and that the settlement in the present case justified compounding notwithstanding the earlier concurrent conviction.

Conclusion: Yes. The conviction and sentence were liable to be annulled on the basis of the compromise, and the petitioner was entitled to be treated as acquitted on compounding.

Final Conclusion: The compromise between the parties was accepted and the conviction and sentence for the cheque dishonour offence were set aside, resulting in the petitioner's acquittal.

Ratio Decidendi: An offence under Section 138 of the Negotiable Instruments Act may be compounded at any stage, including in revision, and once a genuine settlement is recorded, the conviction can be annulled by giving effect to Section 147 notwithstanding the general scheme of compounding under the Code of Criminal Procedure, 1973.

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