Case Note & Summary
The case involved an appeal against a conviction under Section 138 of the Negotiable Instruments Act, 1881. The appellant, Rajendran, was convicted and sentenced to pay a fine of Rs. 2.00 lakhs as compensation, with a default sentence of three months imprisonment if the fine was not paid. During the appeal, both parties reached a compromise, with the respondent confirming receipt of the full amount and stating no further claims against the appellant. The court considered this compromise and noted that the offence under Section 138 is compoundable. Consequently, the court allowed the appeal, set aside the conviction and sentence, and acquitted the appellant. The appellant was ordered to be released from custody immediately. The judgment was delivered on April 6, 2009.
Headnote
A) Criminal Law - Compounding of Offences - Acquittal after Compromise - Negotiable Instruments Act, 1881, Section 138 - The court accepted the compromise between the parties and allowed the appeal, leading to the acquittal of the appellant. The offence under Section 138 being compoundable, the conviction and sentence were set aside, and the appellant was released from custody (Paras Not mentioned).
Issue of Consideration
Whether the conviction under Section 138 of the Negotiable Instruments Act can be set aside based on a compromise between the parties.
Final Decision
The Supreme Court allowed the appeal, set aside the conviction and sentence, and acquitted the appellant under Section 138 of the Negotiable Instruments Act. The appellant was ordered to be released from custody immediately.
Law Points
- Compounding of offences
- Section 138 Negotiable Instruments Act
- 1881
- Section 357 Code of Criminal Procedure
- 1973


