Compounding of cheque dishonour offence in revision was permitted after full settlement and complainant's acknowledgment of no surviving claim.

A conviction under Section 138 of the Negotiable Instruments Act may be revisited in revision where the parties have subsequently reached a bona fide compromise and the complainant has acknowledged full receipt of the cheque amount with no surviving claim. The note states that offences under Section 147 of the Act are compoundable and that revisional jurisdiction can be used to permit compounding in special circumstances to secure the ends of justice. On that basis, the conviction and sentence were said to be nullified, the offence treated as compounded, and acquittal recorded.

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Issues: Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881, affirmed in appeal, could be set aside in revision on the basis of a subsequent compromise between the parties.

Analysis: The dispute was shown to have been fully settled by payment of the cheque amount to the complainant, who acknowledged receipt and stated that no further claim survived. The Court noted that offences under Section 147 of the Negotiable Instruments Act, 1881 are compoundable and that, in the revisional jurisdiction, the Court may permit compounding where special circumstances and a bona fide compromise are established. The Court further held that the settlement justified intervention to secure the ends of justice and to avoid continuation of a dispute that had ceased to survive on merits.

Conclusion: Yes. The conviction and sentence were nullified, the offence was treated as compounded, and the petitioner was entitled to acquittal.

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