30 Mar 2026 11:34 AM

Dishonour of Cheque--Compunding of Offence--Post-Conviction Compounding Under Section 138 NI Act Permissible at Any Stage

Compounding of an offence under Section 138 of the Negotiable Instruments Act, 1881 is permissible at any stage of proceedings, including after finalisation of conviction by the High Court. Section 147 of the NI Act, carrying a non-obstante clause, overrides Section 320(9) of the CrPC by virtue of Section 5 of the CrPC/BNSS. The compensatory aspect of remedy holds priority over the punitive aspect. Inherent power under Section 482 CrPC/Section 528 BNSS is available to compound such offences with the explicit consent of the complainant.

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