1. The submissions of the learned Counsel appearing for the parties were heard earlier. These Petitions are being disposed of by a common judgment as following issues are involved in all these Petitions.

(1) Whether a compromise or arrangement sanctioned under section 391 of the Companies Act, 1956 (hereinafter referred to as ‘the said Act of 1956’) relating to the accused company amounts to compounding of the offence under section 138 read with section 141 of the Negotiable Instruments Act, 1881 (hereinafter referred to as ’the said Act of 1881’)?

(2) What is the effect of an order of sanction of compromise or arrangement under section 391 of the said Act of 1956 in relation to the accused company on a pending complaint alleging commission of offences under section 138 read with section 141 of the said Act, 1881 against the company and its directors?

FACTS OF THE CASES

2. The learned Counsel appearing for the parties have made submissions on the aforesaid issues. Shri Desai, learned Counsel appearing for the Petitioner in Writ Petition No.2770/2006 has made elaborate submissions. The other learned Counsel appearing in the connected matters have also made elaborate submi