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2025 Supreme(Online)(Mad) 66317

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Shamim Ahmed, J
N. Easwaran – Appellant
Versus
L. Sivaramakrishnan – Respondent
CRL.R.C.(MD)No.1375 of 2025 | CRL.M.P.(MD)No.15340 of 2025



Advocates:
For the Appellants/Petitioners: Mr.K.Arunraj
For the Respondents: Mr.T.Kannan, Mr.A.Viswanathan

The inherent powers of the court allow for compounding of offences under the Negotiable Instruments Act at any stage, facilitating annulment of convictions when parties reach a mutual settlement.

Headnote:(A) Negotiable Instruments Act - Section 138 - Bharatiya Nyaya Sanhita, 2023 - Section 359 - Application for condonation of delay of 2608 days in appeal dismissed - Compromise between parties agreed upon post-conviction - Court allows compounding of offence, annuls conviction and sentence. (Paras 3, 24)

(B) Compounding of offences - Held, offences under the Negotiable Instruments Act are compoundable even at any stage, and the inherent powers of the Court can be exercised to secure the ends of justice where both parties have settled amicably. (Paras 10, 22)

(C) Judicial discretion - The Court can intervene post-appeal dismissal, especially when special circumstances are demonstrated, allowing for modification of prior judgments. (Paras 19, 23)

Facts of the case:
The Revision Petitioner sought to overturn a conviction under Section 138 for non-payment of a cheque, delayed appeal dismissed for lack of sufficient cause. The parties entered a Joint Compromise Memo, settling the matter.

Findings of Court:
The conviction and sentence under Section 138 were annulled based on the compromise.

Issues: Whether the Appellate Court's confirmation of the trial court's conviction can be nullified based on a compromise.

Ratio Decidendi: The Court found that offences under the Negotiable Instruments Act can be compounded at any stage, allowing for the annulment of conviction following an out-of-court settlement.

Result: Criminal Revision Case disposed of in terms of Joint Memorandum of Compromise.

Table of Content
1. petitioner's conviction and delay in appeal. (Para 2 , 3)
2. compromise and mutual settlement by parties. (Para 4 , 5 , 6)
3. guidelines for compounding n.i. act offences. (Para 7 , 8 , 9 , 10 , 11 , 12)
4. governnment's stance against compromise. (Para 13 , 14 , 16)
5. court's exercise of inherent power for justice. (Para 18 , 19 , 20 , 22)
6. result of compromise accepted by the court. (Para 21 , 23)
7. final order and acquittal based on compromise. (Para 24 , 25)

ORDER

Heard Mr.K.Arunraj, learned Counsel appearing for the Revision Petitioner and Mr.T.Kannan, learned Counsel for Mr.A.Viswanathan, learned Counsel appearing for the Respondent and also this Court has taken the assistance of Mr.A.S.Abul Kalam Azad, learned Government Advocate.

2. This Criminal Revision Petition has been filed by the Revision Petitioner to set aside the judgment passed by the learned District and Sessions Judge, Karur, in Crl.M.P.No.910 of 2025 vide order, dated 21.07.2025, whereby the petition seeking condonation of a delay of 2608 days in filing an appeal against the judgment passed by the learned Judicial Magistrate, Fast Track Court at Magistrate Level, Karur, in C.C.No.271 of 2016, dated 16.04.2018, was dismissed by the lower Appellate Court on the ground that the Revision Petitioner has not properly explained and has not shown sufficient cause and consequently, the Appeal filed by the Revision Petitioner was also dismissed. Thus, the present Revision Petition is being filed before this Court.

3. The facts of the case in a nutshell, led to filing of this Criminal Revision Petition and necessary for disposal of the same, are as follows:-

a) The Petitioner was convicted and sentenced for the offence under Section 138 of the Negotiable Instruments Act, by the learned Judicial Magistrate, Fast Track Court at Magisterial Level, Karur, in C.C.No.271 of 2016, by the judgment dated 16.04.2018, to undergo six months simple imprisonment for the offence alleged under Section 138 of Negotiable Instrument Act. Challenging the said conviction and sentence, the Revision Petitioner has preferred an appeal before the learned District and Sessions Judge, Karur along with a petition in Crl.M.P.No.910 of 2025 to condone the delay of 2608 days in filing the appeal.

b) The learned District and Sessions Judge, Karur, has dismissed the delay condonation application filed by the Revision Petitioner vide order, dated dated 21.07.2025. Aggrieved by the same, the present Criminal Revision Petition has been filed.

4. Today, when the matter was taken up, the learned Counsel for the Revision Petitioner and the learned Counsel for the Respondent submitted that the Revision Petitioner has paid Rs.3,00,000/- (Rupees Three Lakh only) in cash to the Respondent, and the parties have entered into a Memorandum of Compromise. He further submits that this Hon'ble Court while exercising power under Section 147 of Negotiable Instruments Act, may kindly compound the offence and set aside the judgment and order passed by the Appellate Court dated 21.07.2025 as well as the Trial Court dated 16.04.2018. In this regard, they produced the Joint Compromise Memo dated 30.10.2025, which is taken on record.

As per the terms of the Compromise, the following conditions were laid down between the parties which are quoted as under:

“1. The Petitioner and the Respondent submit that, the Respondent has filed complaint before the learned Judicial Magistrate, Fast Track Court At Magisterial Level, Karur in C.C.No. 271 of 2016 against the Revision Petitioner under section 138 Negotiable Instrument Act. After hearing the above case, the Revision Petitioner was convicted on 16.04.2018 for offence under section 138 Negotiable Instrument Act and sentence him to undergo simple imprisonment for 6 months.

2.The Petitioner and the Respondent submit that, against which the petitioner filed Criminal Appeal along with the petition for Condone the delay of 2608 days in filling the appeal before the Learned Dist

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