Cheque dishonour compounding at revisional stage permitted where settlement and compensation to the complainant were established.

Section 147 of the Negotiable Instruments Act, 1881 was treated as a special, overriding provision that permits compounding of a cheque dishonour offence at any stage, including revision, notwithstanding Section 320 of the Code of Criminal Procedure, 1973. Where the parties settled during the revision and the complainant received the cheque amount, the Court accepted the compromise as a subsequent material circumstance and held that interference was justified to secure substantial justice and bring quietus to the dispute. The conviction and sentence under Section 138 were set aside, the accused was acquitted on compounding, and the amount deposited before the trial court was ordered to be refunded.

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Issues: (i) Whether the conviction and sentence for an offence under Section 138 of the Negotiable Instruments Act, 1881, confirmed in appeal, could be interfered with in revision on the basis of a subsequent compromise between the parties. (ii) Whether compounding of the offence under Section 138 of the Negotiable Instruments Act, 1881 was permissible at the revisional stage notwithstanding Section 320 of the Code of Criminal Procedure, 1973.

Issue (i): Whether the conviction and sentence for an offence under Section 138 of the Negotiable Instruments Act, 1881, confirmed in appeal, could be interfered with in revision on the basis of a subsequent compromise between the parties.

Analysis: The dispute was settled during the pendency of the revision and the complainant received the cheque amount through demand draft. The Court treated the compromise as a material subsequent circumstance and examined whether intervention was warranted to secure substantial justice and bring quietus to the dispute.

Conclusion: Yes. The conviction and sentence could be interfered with in revision on the basis of the compromise, and the order of conviction and sentence was annulled.

Issue (ii): Whether compounding of the offence under Section 138 of the Negotiable Instruments Act, 1881 was permissible at the revisional stage notwithstanding Section 320 of the Code of Criminal Procedure, 1973.

Analysis: Section 147 of the Negotiable Instruments Act, 1881 was treated as a special provision with overriding effect because it begins with a non obstante clause. The Court held that offences under Section 138 are compoundable at any stage, including in revision, and that the compensatory character of cheque dishonour proceedings justified acceptance of settlement. Section 320 of the Code of Criminal Procedure, 1973 was held not to stand in the way of compounding under the special enactment.

Conclusion: Yes. Compounding was permissible at the revisional stage, and the accused was entitled to acquittal on compounding.

Final Conclusion: The revision was disposed of on the basis of settlement, the conviction and sentence were set aside, the accused stood acquitted on compounding, and the amount deposited before the trial court was directed to be refunded.

Ratio Decidendi: Section 147 of the Negotiable Instruments Act, 1881 overrides the general limitation in the Code of Criminal Procedure, 1973 and permits compounding of a cheque dishonour offence at any stage, including revision, where the complainant has been duly compensated.

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