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2025 Supreme(Online)(Mad) 69300

IN THE HIGH COURT OF JUDICATURE AT MADRAS
SHAMIM AHMED, J
S.Vijayalakshmi – Appellant
Versus
P.Palanisamy – Respondent
CRL.R.C.(MD)No.1031 of 2023 | CA.No.111 of 2022 | STC.No.58 of 2021



Advocates:
For the Appellants/Petitioners: Mr.A.Arul Jenifer
For the Respondents: Mr.R.Gunasekaran

Compounding of an offense under the Negotiable Instruments Act is permissible even after conviction, reflecting the law's compensatory focus rather than punitive, allowing courts to secure justice through amicable resolutions.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Compounding of offences - Conviction and sentence under Section 138 confirmed by Appellate Court, which was subsequently annulled upon joint compromise by both parties - Court allows compounding and acquits petitioner. (Paras 28, 29)

(B) Criminal Procedure Code - Inherent powers - Court may intervene to prevent miscarriage of justice and uphold substantial justice, enabling parties to amicably settle and compound offences even post conviction. (Paras 23, 26)

Facts of the case:
The petitioner was convicted under Section 138 of the Negotiable Instruments Act, sentenced to 12 months imprisonment, and ordered to pay compensation. The appeal confirmed the conviction but reduced compensation. The parties later reached a compromise agreement to settle the matter.

Findings of Court:
The revision petition was disposed of in accordance with the Memorandum of Compromise, annulling the conviction and sentence. Petitioner treated as acquitted.

Issues: Can a confirmed conviction be nullified based on a compromise?

Ratio Decidendi: The court recognized inherent powers allowing compounding of the offence despite earlier convictions, reaffirming that the core function is to secure justice through amicable resolutions between parties.

Result: Criminal Revision Case disposed of; petitioner acquitted.

Table of Content
1. factual background of the case. (Para 1 , 2 , 3)
2. court's observations on powers to compound offences. (Para 4 , 10 , 14 , 20 , 22 , 24 , 26)
3. arguments regarding compromise and settlement. (Para 5 , 6 , 11 , 17)
4. ratio decidendi on compounding offences under n.i. act. (Para 12 , 15 , 18 , 28)
5. final conclusion and order disposing the case. (Para 29 , 30)

ORDER

Heard Mr.A.Arul Jenifer, learned Counsel for the Revision Petitioner and Mr.R.Gunasekaran, learned Counsel 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 Principal District Judge, Karur District in C.A.No.111 of 2022, dated 18.08.2023, confirming the conviction and sentence imposed in STC.No.58 of 2021, dated 13.09.2022 on the file of the learned District Munsif cum Judicial Magistrate, Krishnarayapuram.

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 in STC.No.58 of 2021, vide judgment dated 13.09.2022, on the file of the learned District Munsif cum Judicial Magistrate, Krishnarayapuram, to undergo 12 months imprisonment for the offence alleged under Section 138 of Negotiable Instrument Act and to pay a sum of Rs.7,60,000/- towards compensation, to the respondent, in default, to undergo three month imprisonment and to pay a sum of Rs.5,000/- towards fine, in default, to undergo three months imprisonment. Aggrieved by the order of the Trial Court, the Petitioner had filed a Criminal Appeal in C.A.No.111 of 2022 before the learned Principal District Judge, Karur District.

b) The learned Principal District Judge, Karur District, by confirming the conviction and sentence, however, by modifying the compensation amount from Rs.7,60,000/- to Rs.3,80,000/- of the judgment of the trial Court, dated 13.09.2022 in STC.No.58 of 2021, had partly allowed the appeal. Aggrieved by the same, the present Criminal Revision Petition has been filed.

4.This Court, vide order dated 05.11.2025, had passed the following order:

“The present Criminal Revision Case has been filed with the following prayer:

“to call for the records and to set aside the conviction and sentence imposed by judgment dated 18.08.2023 in CA.No. 111 of 2022 on the file of learned Principal District Judge, Karur District by partly allowed the Judgment rendered by the learned District Munsif cum Judicial Magistrate, Krishnarayapuram by its judgment, dated 13.09.2022 in S.T.C.No.58 of 2021 by allowing this Revision Petition.”

2.Heard Mr.M.Anbarasan, learned Counsel for the petitioner and Mr.R.Gunasekaran, learned Counsel for the respondent.

3.The Co-ordinate Bench of this Court, while admitting the Criminal Revision Case, vide order, dated 15.09.2023, had ordered suspension of sentence in Crl.M.P(MD)No.13282 of 2023 in Crl.R.C(MD)No.1031 of 2023, with the following directions:-

“6.Accordingly, this petition is allowed and the substantive sentence of imprisonment alone is suspended pending disposal of the revision with the following directions:-

(i) The petitioner shall deposit a sum of Rs.1,00,000/- of the compensation amount to the credit of S.T.C.No.58 of 2021, on the file of the learned District Munsif cum-Judicial Magistrate, Krishnarayapuram, within a period of four weeks from the date of receipt of a copy of this order, failing which the sentence suspended shall automatically dismissed and the respondent is at liberty to execute the sentence imposed by the trial Court against the petitioner in the manner known to law;

ii) On such deposit, the petitioner shall execute a bond for a sum of Rs.25,000/- (Rupees Twenty Five Thousand only) with two sureties, each for a like sum to the satisfaction of the District Co

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