Brief Facts
- The accused Appellant was convicted by the Trial Court for the offence under section 138 of the NI Act and the conviction was upheld by the Appellate Court. Even the High Court dismissed his revision petition. Thereafter, the Appellant entered into settlement with the Complainant and the Appellant filed an application for review before the High Court for seeking acquittal in light of compromise between the parties and even the Complainant consented to such application. However, the application was dismissed by the High Court.
Issues
- Whether the conviction under section 138 of the NI Act can be set aside at any stage in light of settlement between the parties?
Held
- The petition was allowed and the Supreme Court acquitted the Appellant in light of settlement reached between the parties. The findings of the Court are as under:
- Although dishonour of cheque entails criminal consequence, the legislature by virtue of section 147 of the NI Act has made it compoundable notwithstanding the provisions of the Code of Criminal Procedure, 1973 and the same can be compounded at any stage of the proceedings especially when the parties have themselves arrived at a voluntary compromise.
Relevant Para No.
- 10