Parties may compound offences under the Negotiable Instruments Act after reaching an amicable settlement, leading to acquittal and setting aside of conviction.

ORDER

The petitioner has preferred the present revision challenging the judgment dated 02.02.2026 passed in C.A.No.157 of 2021 on the file of the II Additional District and Sessions Judge, Erode, confirming the conviction and sentence originally imposed on the petitioner for the offence under Section 138 of the Negotiable Instruments Act by the judgment dated 07.10.2021 in S.T.C.No.695 of 2018 by the Fast Track Court No.II (Magisterial Level), Erode. The petitioner was sentenced to undergo six months simple imprisonment and directed to pay Rs.08,01,990/- to the complainant as compensation and in default to undergo further one month simple imprisonment.

2. Mr.C.S.Saravanan, learned counsel for the petitioner would submit that the parties have since arrived at an amicable settlement and have filed Memo of Compromise dated 18.03.2026 before this Court.

3. The respondent/complainant appeared through video conferencing mode and affirmed the same. The parties stated that the dispute has been fully settled and accordingly, prayed to set aside the judgment dated 02.02.2026 passed in C.A.No.157 of 2021, as well as the Trial Court judgment dated 07.10.2021 in S.T.C.No.695 of 2018. For ready reference, the scanned image of the Memo of Compromise is depicted below:

4. In view of the compromise reached between the parties, and considering the nature of the offence, this Court permits the parties to compound the offence. Accordingly, the judgment dated 02.02.2026 passed in C.A.No.157 of 2021 on the file of the II Additional District and Sessions Judge, Erode, confirming the judgment of conviction and sentence dated 07.10.2021 in S.T.C.No.695 of 2018 by the Fast Track Court No.II (Magisterial Level), Erode, are hereby set aside. Consequently, the Criminal Revision Case stands allowed in terms of the said compromise. The petitioner is acquitted of all charges in the present case. The fine amount, if any, paid by the petitioner shall be refunded and the bail bond, if any, executed by him shall stand discharged.