Cheque dishonour compounding relief: limited time to seek compromise with interim protection from coercive action.

In a cheque dishonour proceeding, the applicant was given a limited opportunity to pursue compounding through compromise. The accused was permitted to appear before the trial court within one month, file an application for compounding on deposit of 10% of the cheque amount, and seek further time as allowed by law. The trial court was directed to decide the matter in accordance with the law governing compounding of offences under the Negotiable Instruments Act. No coercive steps were to be taken during the stipulated period, or until the compounding application was decided, whichever occurred earlier.

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Issues: Whether the applicant, facing proceedings arising from a cheque dishonour complaint, should be granted an opportunity to seek compounding through compromise and protection from coercive steps for a limited period.

Analysis: The application was disposed of with directions permitting the accused to appear before the trial court within one month, move an application for compounding on deposit of 10% of the cheque amount, and seek further opportunity for a limited period. The court below was directed to proceed in accordance with law and to decide the matter keeping in view the law governing compounding of offences under the Negotiable Instruments Act, while no coercive measures were to be taken during the stipulated period or until the application was decided, whichever was earlier.

Outcome: Interim protection and time to pursue compromise were granted, and the application was disposed of.

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