( 1 ) SHORT question involved for consideration in these proceedings is whether the complaint under Section 138 of the Negotiable Instruments Act relating to dishonouring of a cheque which in this case was of the amount of Rs. one crore can be allowed to continue alongwith other complaints under Section 138 of the Act arising out of the agreement or compromise arrived at between the parties in the original complaint wherein several cheques were issued and accepted by the complainant but on presentation were dishonoured. In other words, can the complainant be allowed to continue the original complaint alongwith as many complaints as many cheques are issued and accepted by way of compromise in the original complaint.

( 2 ) ADMITTEDLY in the instant case not only the proceedings of the original complaint relating to the cheque of Rs. One crore are continuing but as many as seven more complaints arising out of the cheques given by the petitioner in lieu of Rs. One crore by way of agreement between the parties have been filed wherein petitioner has been summoned as accused. Admittedly, a civil decree has also been obtained by the respondent/complainant for the amount due from the petitioner to the respondent in respect of which execution proceedings are in vogue.

( 3 ) MAIN gravamen of the contention of Mr. L. C. Goyal, learned counsel for petitioner is that once respondent by way of agreement between the parties had accepted seven cheques during the subsistence of the complaint against a cheque of Rs. One crore, this amounted to compounding the offence which has to result in acquittal on account of compounding of the offence as cheques issued subsequently in lieu of the liability of the cheque giving rise to the original complaint had provided fresh cause of action.

( 4 ) AS against this Mr. Ravi Gupta, learned Counsel for the respondent contends that any agreement made by the parties which is contrary to the provisions of Section 138 is of no relevance as in the instant case by virtue of clause 8 of the agreement executed between them during the pendency of the original complaint under Section 138 of the Act initiated on account of dishonouring of the cheque of Rs. One crore, respondent/complainant had reserved the right to continue the cases initiated in respect of every cheque. Clause 8 reads as under:-

"that in the event the cheques issued by the Borrower as per this Agreement are not honoured, MSS shall have the right to continue the above referred cases and to further initiate both civil and criminal actions including under Section 138 of the Negotiable Instrument Act with reference to the cheques issued under this Agreement. "

( 5 ) IT is contended that perusal of clause 8 shows that the complainant/ respondent was given the liberty to initiate action under Section 138 of the Act in case cheques issued under this agreement are not honoured without foregoing his right to continue with the original complaint.

( 6 ) IN order to appreciate the aforesaid rival contentions, reproduction of Section 138 is necessary. It reads as under:- "138. Dishonour of cheque for insufficiency, etc. , of funds in the account--Where any cheque drawn by a person on an account maintaine by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for [a term which may be exrtended to two years], or with fine which may extend to twice the amount of the cheque, or with both: provided that nothing contained in this section shall appl