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2026 Supreme(Online)(Mad) 17333

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M. Nirmal Kumar, J
R.M.Venugopal – Appellant
Versus
M/s.R.N.Textiles – Respondent
Crl.R.C.No.291 of 2021 | Crl.R.C.No.1137 of 2021



Advocates:
For the Appellants/Petitioners: Mr.K.Rajkumar for Mr.R.Bharath Kumar
For the Respondent(s): Mr.R.Srinivasan (in VC)

The court affirmed the legality of compounding offenses under Section 138 of the Negotiable Instruments Act following agreed resolutions between the parties.

Headnote:Section 138 of the Negotiable Instruments Act is critically analyzed. The petitioners were convicted for dishonoring cheques and were sentenced by the trial court. Appeals in higher courts affirmed this sentence. A joint compromise was reached between the parties, leading to the request for compounding. The court found the compromise legitimate, resulting in the acquittal of the petitioners from the offense. The Joint Memo of Compromise is accepted, and prior judgments are set aside.

Table of Content
1. conviction and sentences imposed on the petitioners. (Para 1 , 2)
2. payment agreements and joint memo of compromise. (Para 3 , 4 , 5)
3. court's approval of the compromise and acquittal of petitioners. (Para 6 , 7 , 8)

COMMON ORDER

Both the Criminal Revision Cases arises out of conviction of the petitioners / accused imposed by the trial Court in C.C.Nos.355 & 356 of 2017 for the offence under Section 138 of the Negotiable Instruments Act and sentence imposed on the petitioners / accused to undergo simple imprisonment for six months and to pay the cheque amount of Rs.3,00,000/- and Rs.2,27,000/ respectively as compensation with 6% interest from the date of cheque to the respondent / complainant, in default to undergo simple imprisonment for three months. Aggrieved against the same, appeals had been preferred before the Sessions Court in C.A.Nos.124 & 125 of 2019. Both the appeals dismissed on 15.03.2021, confirming the conviction of trial Court.

Hence, the present Criminal Revision Cases have been filed before this Court.

2.In the meanwhile, the petitioners preferred petitions in Crl.M.P.Nos.5744 & 14469 of 2021 seeking suspension of sentence imposed. This Court vide order dated 06.05.2021 in Crl.M.P.No.5744 of 2021 suspended the sentence, directed the petitioners to deposit a sum of Rs.1,00,000/- to the credit of C.C.No.356 of 2017 before the learned Judicial Magistrate (Fast Track Court II), Coimbatore. In Crl.M.P.No.14469 of 2021 on 07.01.2022, this Court suspended the sentence. Further in Crl.M.P.No.5744 of 2021 directed the petitioners to deposit a sum of Rs.1,13,500/- before the learned Judicial Magistrate (Fast Track Court II), Coimbatore.

3.The learned counsel for petitioners / accused submitted that the petitioners approached the respondent who agreed to receive the cheque amount and to compound the case. The petitioners paid a sum of Rs.2,00,000/- to the respondent vide Demand Draft Cheque No.919558 dated 11.11.2025, drawn on Bank of Baroda, Thudiyalur Branch. The petitioners paid a sum of Rs.50,000/- to the respondent vide Demand Draft Cheque No.919582 dated 12.01.2026, drawn on Bank of Baroda, Thudiyalur Branch. Further, the petitioners paid a sum of Rs.1,70,000/- to the respondent vide Demand Draft Cheque No.919588 dated 29.01.2026, drawn on Bank of Baroda, Thudiyalur Branch. Thereafter, the petitioners paid a sum of Rs.1,07,000/- to the respondent vide Demand Draft Cheque No.919596 dated 10.02.2026, drawn on Bank of Baroda, Thudiyalur Branch. Thus, the petitioners paid the entire amount of Rs.5,27,000/- to the respondent.

4.The respondent/complainant agreed and received the amount of Rs.5,27,000/-. In total, respondent / complainant is satisfied with the sum of Rs.5,27,000/-. In confirmation to the same, the petitioners and respondent filed a Joint Memo of Compromise dated 16.02.2026 and the same is scanned hereunder:-

5.Today, both the petitioners and the respondent appeared together through video conferencing from Advocate Chamber in Coimbatore and their identity is not disputed and confirmed the compromise arrived at between them. The learned counsel for petitioner and the respondent filed a Petition under Section 147 of the Negotiable Instruments Act, 1881 in Crl.M.P.No.3576 of 2026 for compounding the offence, which was signed by the petitioners and the respondent and by their respective counsels and the same is ordered.

6. In view of the compromise arrived at between the parties and considering the petition under Section 147 of the Negotiable Instruments Act, the offence under Section 138 of the Negotiable Instruments Act in C.C.

Nos.355 & 356 of 2017 is compounded.

7.In view of the same, the Joint Memo of Compromise dated 16.02.2026 is taken on file. The Criminal Revision Case is allowed in terms of the Joint Memo of Compromise dated 16.02.2026. The conviction and sentence imposed on the petitioners vide judgment dated 15.03.2021 made in Crl.A.Nos.124 & 125 of 2019 on the file of the learned IV A

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