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IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.NIRMAL KUMAR
G. Ponnusamy S/o.Mr.Ganapathy Gounder – Appellant
Versus
M. Shanmugavadivel S/o.Mr.Mariappa Mudaliar – Respondent
ORDER :
M. NIRMAL KUMAR, J.
1. The petitioner/Accused in C.C.No.379 of 2009 was convicted by the trial Court by the judgment dated 22.07.2016 for offence under Section 138 of the Negotiable Instruments Act ('N.I. Act') and sentenced to undergo six months simple imprisonment and to pay the cheque amount of Rs.8,00,000/- as compensation. Aggrieved against the same, the petitioner filed an appeal before the I Additional District and Sessions Judge, Tiruppur in Crl.A.No.91 of 2016. The learned Sessions Judge, by the judgment dated 16.04.2021 dismissed the appeal confirming the conviction of the trial Court, against which, the present revision is filed.
2.During the pendency of the revision, the matter was referred to the National Lok Adalat held by this Court on 13.09.2025. In the Lok Adalat, the parties arrived at a settlement and the respondent/complainant agreed to receive a further sum of Rs.5,00,000/- in full quit. The Terms of Settlement reads as follows:
3.Recording the submission of the parties, the Criminal Revision Case was disposed of by the Lok Adalat and for setting aside the conviction, the case was posted before this Court.
4.Today, the petitioner is present before this Court
Court can quash conviction under Section 138 NI Act on compromise in private disputes using inherent powers.
A compromise between parties in a case under Section 138 of the Negotiable Instruments Act can lead to the quashing of a conviction and acquittal of the accused.
Award passed in Lok Adalat concerning criminal case under Section 138 of Negotiable Instruments Act, 1881 is executable by Civil Court in case of default committed by judgment debtor.
Settlement of dues renders criminal convictions under section 138 of the Negotiable Instruments Act untenable.
Proper adherence to procedural requirements and principles of law in dismissing appeals and considering suspension of sentence under Section 138 of NI Act.
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