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In cheque dishonour proceedings arising from commercial...

Cheque dishonour settlements can justify quashing and sentence modification under inherent jurisdiction where compromise is genuine.

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Indian Laws June 13, 2026 Case Laws HC
In cheque dishonour proceedings arising from commercial transactions, the court applied inherent jurisdiction sparingly to bring criminal proceedings to an end where the parties had voluntarily settled and continuation would serve no useful purpose. It treated offences under the Negotiable Instruments Act as compoundable, noted that the complainant had received the full amount in full and final satisfaction and that execution proceedings had been withdrawn, and found no coercion or fraud in the compromise. On that basis, the offence was compounded, the proceedings were terminated, and the sentence was modified to the period already undergone.

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Acts Income Tax