Cheque Bounce Case Under the Negotiable Instruments Act | Compounding Allowed After Conviction; Sentence Set Aside Following Settlement Between Parties: Madras High Court

The Madras High Court has permitted the settlement of a cheque dishonour case even after conviction and sentence, holding that an offence under Section 138 of the Negotiable Instruments Act, 1881 can be compounded at any stage when the parties have resolved their dispute. The Court exercised its revisional and inherent powers to set aside the conviction and sentence of the accused after the complainant received the entire cheque amount.…