Cheque bounce offence can be compounded on settlement: HC

Observing that since offence under Section 138 of the Negotiable Instruments Act (Cheque bounce cases) can be compounded at any stage of the proceedings, the Madras high court acquitted three persons in three different such cheque bounce cases after directing them to deposit 15 per cent of the cheque amount as per the Supreme Court guideline.

Recording the submission from counsels on either side seeking to compound the offence subsequent to the parties having arrived at a compromise after confirmation of conviction in appeal, Justice P Velmurugan allowed the criminal revision petition moved by the accused. “Since the matter has been amicably settled between the parties and also considering the fact that the petitioner/accused in all Revisions have also deposited 15 per cent of the cheque amount respectively before the Registry, the offence under Section 138 of the Negotiable Instruments Act shall stand compounded and the revision petitioners be acquitted of the charges convicted against them, ” judge held.

The court had directed the accused in all the Revisions, to deposit 15% of the cheque amount for compounding the offence, as per the Supreme Court guidelines, which held “If the application for compounding is made before the Sessions Court or a High Court in revision or appeal, such compounding may be allowed on the condition that the accused pays 15% of the cheque amount by way of costs.”

The court also directed the transfer of the 15% of the cheque amount deposited by the petitioner to the account of the Tamil Nadu Legal Services Authority.