Post-conviction compounding under the Negotiable Instruments Act can undo conviction once the cheque dispute is fully settled.

Section 147 of the Negotiable Instruments Act is a special enabling provision that permits compounding of an offence under Section 138 at any stage, including after conviction. Where the complainant has received the full compensation amount and accepts the settlement, the compromise may be given full effect, and the conviction and sentence can be withdrawn to reflect the completed settlement. On that basis, post-conviction compounding was accepted and the accused was acquitted of the offence.

---

---

Issues: Whether an offence under Section 138 of the Negotiable Instruments Act can be compounded after conviction has been recorded and the judgments of conviction and sentence can be recalled and set aside on the basis of a subsequent compromise and payment of the entire amount.

Analysis: Section 147 of the Negotiable Instruments Act is a special enabling provision permitting compounding of offences under Section 138 at any stage. The application was supported by the admitted compromise and the receipt of the entire compensation amount by the complainant, who had no objection to the accused being acquitted. The Court relied on earlier decisions recognising that post-conviction compounding is permissible and that, once the dispute has been fully settled, the conviction and sentence can be withdrawn to give effect to the compromise.

Conclusion: The offence was held compoundable after conviction, the request for compounding was accepted, and the judgments of conviction and sentence were quashed with the accused acquitted of the offence.

Final Conclusion: The compromise between the parties was given full effect, resulting in setting aside of the adverse criminal findings and release of the accused from the consequence of the prosecution.

Ratio Decidendi: An offence under Section 138 of the Negotiable Instruments Act may be compounded even after conviction when the complainant has received the full amount and the settlement is accepted by the Court.

---