Case Note & Summary
The petitioner, Kamlesh Odhavdas Purohit, was convicted by the Fast Track Court No.II (Magisterial Level), Erode on 07.10.2021 in S.T.C.No.694 of 2018 for the offence under Section 138 of the Negotiable Instruments Act, 1881. He was sentenced to six months simple imprisonment and directed to pay Rs.12,33,449/- as compensation to the complainant, with a default sentence of one month simple imprisonment. The conviction and sentence were confirmed by the II Additional District and Sessions Judge, Erode on 02.02.2026 in C.A.No.156 of 2021. Aggrieved, the petitioner filed a criminal revision before the Madras High Court under Section 438 read with Section 442 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023. During the pendency of the revision, the parties arrived at an amicable settlement and filed a Memo of Compromise dated 18.03.2026. The respondent/complainant appeared via video conferencing and affirmed the settlement. The Court, considering the nature of the offence and the compromise, permitted the parties to compound the offence. Consequently, the Court set aside the judgment of the appellate court dated 02.02.2026 and the trial court judgment dated 07.10.2021, and acquitted the petitioner of the charges. The Court also directed that the compensation amount, if any deposited, be refunded to the petitioner.
Headnote
A) Negotiable Instruments Act - Compounding of Offence - Section 138 read with Section 147 - Settlement between parties - The petitioner was convicted under Section 138 of the Negotiable Instruments Act and sentenced to six months simple imprisonment with compensation. The parties subsequently arrived at an amicable settlement and filed a Memo of Compromise. The Court permitted compounding of the offence in view of the settlement and set aside the conviction and sentence. Held that the offence under Section 138 is compoundable and the compromise justifies setting aside the conviction (Paras 1-4).
Issue of Consideration
Whether the conviction and sentence under Section 138 of the Negotiable Instruments Act can be set aside on the basis of a compromise between the parties.
Final Decision
The Court permitted compounding of the offence, set aside the judgment dated 02.02.2026 in C.A.No.156 of 2021 and the judgment dated 07.10.2021 in S.T.C.No.694 of 2018, and acquitted the petitioner. The compensation amount, if any deposited, was ordered to be refunded to the petitioner.
Law Points
- Compounding of offence under Section 138 of Negotiable Instruments Act is permissible even after conviction
- subject to settlement between parties
- Offence under Section 138 is compoundable under Section 147 of NI Act
- Criminal revision can be allowed on basis of compromise memo
