Post-conviction compounding under the Negotiable Instruments Act can follow a compromise and full payment of compensation.

Compounding of an offence under Section 138 of the Negotiable Instruments Act may be permitted even after conviction where the parties later compromise and the complainant receives the full compensation amount. The text notes that, relying on Section 147 and binding precedent, a post-conviction compromise does not bar relief once the award is fully satisfied. On that basis, the offence was treated as compoundable after conviction and the convicted person was entitled to acquittal.

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Issues: Whether the offence under Section 138 of the Negotiable Instruments Act could be compounded after conviction on the basis of a post-conviction compromise and payment of the entire compensation amount.

Analysis: The petitioner was convicted under Section 138 of the Negotiable Instruments Act and the conviction had already been affirmed in appeal and revision. The parties subsequently entered into a compromise, and the respondent acknowledged receipt of the entire compensation amount. The Court relied on the statutory power of compounding under Section 147 of the Negotiable Instruments Act and the settled principle that such compounding can be permitted even after conviction, as recognised in binding precedent. In view of the compromise and full satisfaction of the awarded amount, no impediment remained to grant relief.

Conclusion: The offence was held compoundable after conviction, and the petitioner was entitled to be acquitted on the basis of the compromise.

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