Legal Learning | Shri Ganpati Jurists
Vinesh @ Vinesh Soni v. State of Punjab (Punjab & Haryana High Court)
Key Legal Principle:
A complaint under Section 138 of the Negotiable Instruments Act, 1881 cannot be compounded merely because the accused is willing to pay the cheque amount. The complainant’s consent is mandatory.
Key Takeaways
✅ Compounding Requires Mutual Consent
- Under Section 147 of the Negotiable Instruments Act, an offence under Section 138 may be compounded at any stage.
- However, compounding is possible only when both the accused and the complainant agree.
- The complainant’s consent is a sine qua non for compounding.
✅ Unilateral Offer is Not Enough
- The accused’s willingness to pay the cheque amount, even with additional compensation, does not automatically result in compounding.
- A court cannot compel the complainant to accept such an offer.
✅ Difference Between Quashing and Compounding
- Compounding is a consensual settlement between the parties.
- Quashing is an exercise of judicial discretion based on the facts and circumstances of the case.
- The two concepts are distinct and cannot be treated interchangeably.
✅ Inherent Powers of the Court
- The Court held that Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (inherent powers) cannot be used to bypass the statutory requirement of the complainant’s consent.
- Any order permitting compounding without such consent would be contrary to the Negotiable Instruments Act.
Takeaway:
In cheque dishonour cases, the accused cannot secure compounding merely by offering payment. Unless the complainant voluntarily agrees, the offence cannot be compounded under Section 147 of the Negotiable Instruments Act.
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