Cheque dishonour compromise allowed; full settlement made the offence compoundable and justified modification of sentence.

A cheque dishonour dispute under Section 138 of the Negotiable Instruments Act was treated as compoundable on the basis of a voluntary, full compromise between the parties, with the complainant having received the settled amount and the execution proceedings withdrawn. The text notes that Section 147 makes offences under the Act compoundable notwithstanding the CrPC, and that the inherent power under Section 528 of the Bharatiya Nagarik Suraksha Sanhita may be used to secure the ends of justice and prevent abuse of process where the settlement is genuine and free from coercion, fraud or undue influence. The sentence was modified to the period already undergone.

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Issues: Whether the offence under Section 138 of the Negotiable Instruments Act, 1881 could be compounded on the basis of a voluntary compromise between the parties, warranting exercise of inherent jurisdiction under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 and modification of the sentence already imposed.

Analysis: The parties had entered into a compromise, the complainant had received the entire settled amount, and the execution proceedings had been withdrawn. Section 147 of the Negotiable Instruments Act, 1881 makes every offence under the Act compoundable notwithstanding the Code of Criminal Procedure, 1973. In view of the settled nature of the dispute, its essentially commercial character, and the absence of any material showing coercion, fraud, or undue influence, continuation of the prosecution would serve no useful purpose. The inherent power preserved under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 was therefore attracted to secure the ends of justice and prevent abuse of process.

Conclusion: The offence under Section 138 of the Negotiable Instruments Act, 1881 was compounded, and the sentence was modified to the period already undergone by the petitioner.

Ratio Decidendi: Where a cheque dishonour dispute is voluntarily and fully settled and the complainant has received the entire amount in full satisfaction, the offence is compoundable at any stage and the Court may invoke inherent jurisdiction to bring the proceedings to an end in the interests of justice.

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