Compounding of offence
1 When the parties have settled the dispute amicably, compounding of the offence is required to be permitted.
2 Guidelines by Hon’ble Apex Court for the compounding of offence u/s 138 of N.I. Act, 1881.
3 Appellate Court, while exercising power u/s 147 of the Act, can proceed to compound the offence even after recording of conviction by the Trial Court.
4 If the sentence of fine is directly paid to the complainant, instead of depositing in the Court, the trial Court is empowered to close the Case.
5 The Apex Court imposed cost of Rs.5.00 Lacs upon Accused for litigating for 10 years and wasting precious judicial time.
6 High Court is empowered u/s 482 of the Code to compound the offence even if complainant do not consent to the same, provided that complainant is duly compensated.
7 Compromise by some of the Accused: In appropriate cases, piecemeal compromise and compounding of offence is permissible, provided that the complainant is getting adequate compensation.
8 Compromise or compounding of offence, at the stage of Criminal Revision before High Court is not possible without the consent of the complainant.
9 Offence u/s 138 of the N.I. Act can be compounded at any stage of the proceeding.
10 In Cases where the Settlement sum is much less than the sentence of fine; and even that agreed sum is not paid by the Accused, the High Court may refuse to compound the offence.
11 In the event the convict fail to honour the settlement agreement, the sentence of conviction may be restored and Bail would be cancelled.
12 While issuing Summons, the Court may indicate that the Accused may make an application for compounding of offence at the first hearing of the case.