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2025 Supreme(Online)(Mad) 69404

IN THE HIGH COURT OF JUDICATURE AT MADRAS
SHAMIM AHMED, J
G.Amirtharaj – Appellant
Versus
J.Selvaraj – Respondent
CRL.R.C.(MD)No.1467 of 2025|Crl.MP(MD)No.18035 of 2025



Advocates:
For the Appellants/Petitioners: Mr.KA.Ramakrishnan
For the Respondents: Mr.S.Muthumalairaja, Mr.J.Suresh Deva Justin

Compounding of offences under Section 138 is permissible, allowing for acquittal when the parties reach an amicable settlement and payment is made.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Compounding of offences - The petitioner was convicted for dishonour of cheque under Section 138, but later both parties reached a compromise and payment was made. The court upheld the inherent powers to compound the offence and acquit the petitioner. (Paras 25, 26)

(B) Criminal Procedure - Inherent powers of court - The High Court can exercise its powers to secure the ends of justice and prevent misuse of law, especially when parties settle their disputes amicably. (Para 21)

Facts of the case:
The Revision Petitioner was convicted under Section 138 for failing to pay a cheque amount which was later settled with the respondent, leading to this revision case.

Findings of Court:
The court accepted the compromise and annulled the conviction, declaring the petitioner acquitted and directing release from jail without conditions.

Issues: Whether an order confirming conviction can be nullified on the basis of a compromise.

Ratio Decidendi: The Court emphasized the compensatory nature of Section 138 and recognized its authority to intervene when justice demands alignment with amicable settlements.

Result: Revision Petition allowed, conviction annulled.

Table of Content
1. court's authority and provisions regarding compounding. (Para 1 , 2 , 19 , 21)
2. conviction and case details. (Para 3)
3. compromise terms and payments. (Para 4 , 6)
4. acceptance of compromise leads to annulment of conviction. (Para 25)
5. final verdict of acquittal. (Para 26)

ORDER

Heard Mr.KA.Ramakrishnan, learned Counsel appearing for the Revision Petitioner and Mr.S.Muthumalairaja, 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 to set aside the to set aside the orders passed in Crl.A.No.49 of 2019 dated 19.08.2025 on the file of the learned Additional District and Sessions Judge, Srivilliputhur, Virudhunagar District, confirming the judgment in C.C.No.231 of 2016 dated 27.03.2019 on the file of the learned Judicial Magistrate II, Sattur, Virudhunagar District.

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 Revision Petitioner was convicted and sentenced for the offence under Section 138 of the Negotiable Instruments Act, by the learned Judicial Magistrate II, Sattur, Virudhunagar District in C.C.No. 231 of 2016, by the judgment dated 27.03.2019, to undergo one year simple imprisonment for the offence alleged under Section 138 of Negotiable Instrument Act. Aggrieved by the order of the Trial Court, the Revision Petitioner filed a Criminal Appeal in Crl.A.No.49 of 2019 before the learned Additional District and Sessions Judge, Srivilliputhur, Virudhunagar District.

b) The learned Additional District and Sessions Judge, Srivilliputhur, Virudhunagar District, confirming the judgment passed by the learned Judicial Magistrate II, Sattur, Virudhunagar District in C.C.No.231 of 2016, dated 27.03.2019, dismissed the said Appeal vide order dated 19.08.2025. Aggrieved by the same, the present Criminal Revision Petition has been filed.

4. When the matter was taken up on 24.11.2025, this Court passed the following order:

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

“to set aside the orders passed in Crl.A.No.49 of 2019 dated 19.08.2025 on the file of the learned Additional District and Sessions Judge, Virudhunagar District confirming the order passed in C.C.No.231 of 2016 dated 27.03.2019 on the file of the learned Judicial Magistrate II, Sattur, Virudhunagar District.

2.Heard Mr.KA.Ramakrishnan, learned Counsel for the Revision Petitioner and Mr.J.Suresh Deva Justin, learned Counsel, accepts notice on behalf of the respondent. Thus, there is no need to issue notice on the respondent.

3.The learned Counsel for the Revision Petitioner submits that pursuant to the order passed by the learned Additional District and Sessions Judge, Virudhunagar District, in Crl.A.No.49 of 2019, dated 19.08.2025, the Revision Petitioner is in jail from 13.11.2025. It was further submitted that out of the total cheque amount of Rs.6,20,000/-, the Revision Petitioner has already paid a sum of Rs.1,00,000/- in cash to the respondent and as the Revision Petitioner is in jail, the Revision Petitioner's wife on behalf of the Revision Petitioner has paid a sum of Rs. 5,20,000/- to the respondent today before this Court by way of cash. Thus, the learned Counsel for the Revision Petitioner submits that the Revision Petitioner has paid the entire cheque amount of Rs.6,20,000/- to the respondent and no amount is due to the Respondent and the Revision Petitioner is ready to compromise the matter with the respondent, as there are fair chances of settlement between the parties and this Court by exercising power under Section 147 of the Negotiable Instruments Act, 1881, may compound the offence and prays for an adjournment to file a joint memo of compromise on or before the next date fixed.

4.Mr.J.Selvaraj, respondent, who is appearing before this Court in person along with his Counsel, Mr.J.S

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