Compromise order is a decree under sec 138
Querist :
Anonymous
(Querist) 22 November 2025
This query is : Resolved
Sir pls tell me about the compromise or settlement order by regular court under section 138 NI act is a decree or not and execution of the same lies or not. Pls provide section and judgements if any.
T. Kalaiselvan, Advocate
(Expert) 22 November 2025
There is no compromise decree, it will be simply dismissal on the basis of the withdrawal of the complaint on settlement.
T. Kalaiselvan, Advocate
(Expert) 23 November 2025
When a Lok Adalat makes an award (including in NI Act cases), Section 21 of the Legal Services Authorities Act deems the award to be a “decree” of a civil court.
K.N. Govindan Kutty Menon v. C.D. Shaji (2012), 2 SCC 51
In this case, a criminal complaint under Section 138 was referred to Lok Adalat. The parties settled, and an award was made.
Held: Under Section 21 of the Legal Services Authorities Act, that award is deemed to be a decree of a civil court and is thus executable.
The court held that once the award is made, the magistrate (criminal court) becomes functus officio (i.e., loses further jurisdiction to try/convict) because the settlement has been accepted and should be enforced as a decree, not tried further.
Querist :
Anonymous
(Querist) 23 November 2025
When the compromise was done in a regular court and the settlement conditions are not followed by accused. In that case what is the remedy to complaint as the complaint stands withdrawa on that settlement and accordingly court orders in view of that settlement the case stand withdraw being compromise
Dr. J C Vashista
(Expert) 26 November 2025
Complaint u/s 138 NI Act, 1881 is a quasi-criminal case and no decree is passed in a criminal case.
Its only civil suit(s) being decreed.
