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        Indian Laws

        HC permitted compounding of offense under Section 138 of...

        Section 138 NI Act Conviction Quashed After Parties Reach Settlement Agreement; Court Orders Refund of Deposited Amount

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                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.
                                HC permitted compounding of offense under Section 138 of Negotiable Instruments Act post-conviction based on parties' subsequent compromise. While acknowledging that inherent powers must be exercised sparingly, HC held that Section 147 of NI Act, containing non-obstante clause, allows compromise settlements despite contrary provisions in CrPC. Given the amicable settlement between parties, HC annulled the conviction and sentence, directing acquittal of accused. Court ordered refund of Rs.35,000/- deposited by Revision Petitioner with accrued interest within four weeks. The ruling emphasizes that special law (NI Act) prevails over general law (CrPC) regarding compromise settlements, even at post-conviction stage.
                                Note: It is a system-generated summary and is for quick reference only.
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