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(2026) Law Today Live Doc. Id. 21503
in MA 1646 of 2025
in Crl.A. No. 508 of 2011
Decided on: 15.05.2026
For Petitioner(s):
Mr. Subhasish Bhowmick, AOR, Ms. Manisha Pandey, Adv., Mr. Suraj Kumar Singh, Adv., Mr. Reegan S Bel, Adv.
For Respondent(s):
Mrs. Mona K. Rajvanshi, AOR, Mr. Anurag Kashyap, Adv., M/S. Plr Chambers And Co., AOR
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Dishonour of cheque – Compounding of offence with parties’ consent permissible at any stage, even after conviction.
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Negotiable Instruments Act, 1881 (26 of 1881), Sections 138, 147 – Constitution of India, Article 142 -- Dishonour of cheque – Compounding of offence – Offence under Section 138 is compoundable with consent of parties at any stage, even after conviction – In exercise of powers under Article 142 of the Constitution, conviction set aside in terms of settlement, subject to deposit of additional Rs.20,000 within two weeks for payment to complainant.
(Para 8, 9)
Cases referred:
1. Damodar S. Prabhu v. Sayed Babalal H, (2010) 5 SCC 663.
2. Raj Reddy Kallem v. State of Haryana, (2024) 8 SCC 588.
3. B. V. Seshaiah v. State of Telengana and another, (2023) 18 SCC 512.
4. Gian Chand Garg v. Harpal Singh and another, 2025 SCC OnLine SC 2317.
ORDER
1. Delay condoned.
2. By order dated 23.07.2025, the applicant’s appeal (Criminal Appeal No. 508/2011) was dismissed for non-prosecution by observing that if the sum of Rs. 15,540/- was deposited by the applicant before the Trial Court and has not been released in favour of the first respondent (the complainant), the complainant would be at liberty to withdraw the said amount along with interest, if any, accrued.
3. Through M.A. No. 1421/2026, the appellant has prayed for restoration of the aforesaid criminal appeal and has invoked powers of this Court under Article 142 of the Constitution of India to compound the offence under Section 138 of the Negotiable Instruments Act, 1881 (“NI Act”) by permitting the applicant to pay an additional amount as full and final settlement of the outstanding amount with the complainant.
4. Upon consideration of the facts stated in the application we deem it appropriate to recall the order dated 23.7.2025 to the extent it dismisses the appeal for nonprosecution and restore the appeal to its original number.
5. Heard learned counsel for the parties.
6. The learned counsel for the appellant submits that the appellant is willing to pay an additional sum of Rs. 20,000/- over and above the amount already deposited in the trial court which has been withdrawn by the complainant under orders of this Court.
7. The learned counsel for the respondent submits that she has no objection to the matter being compounded subject to deposit of Rs. 20,000/- within two weeks from today.
8. To support his prayer for compounding, the learned counsel for the appellant has relied on few decisions of this Court wherein this Court in exercise of its power under Article 142 of the Constitution of India to bring a quietus to the litigation between the parties has set aside the conviction on basis of settlement/compromise between the parties.
9. Having regard to the above and by taking into consideration the provisions of Section 147 of the N.I. Act and the law laid down by this Court (vide Damodar S. Prabhu v. Sayed Babalal H3 [3(2010) 5 SCC 663]; Raj Reddy Kallem v. State of Haryana4 [4(2024) 8 SCC 588] ; B. V. Seshaiah v. State of Telengana and another5 [5(2023) 18 SCC 512] and Gian Chand Garg v. Harpal Singh and another6 [62025 SCC OnLine SC 2317]) that an offence punishable under Section 138 N.I. Act is compoundable with the consent of parties at any stage, even after conviction, we deem it appropriate to set aside the impugned conviction order and allow this appeal in terms of the aforesaid settlement. In consequence, the appellant shall deposit additional sum of Rs. 20,000/- within two weeks from today before the trial court, which shall be released in favour of the complainant/ respondent.
10. IA No. 338955/2025 and Miscellaneous Application are allowed in the aforesaid terms.
11. Pending application(s), if any, shall stand disposed of.
Applications allowed.
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