Compounding by accused alone

Cheque Victim's Lawyer. LUDHIANA (PB)




_ Compounding means agreement of two parties of case on same direction, at same time, at same meaning, at same point. The word ‘compromise’ itself signifies an agreement between the two parties to compound the offence. If the parties do not agree to compound the offence, the Court has to proceed with the complaint. It is different thing that the Court on considering the offer of payment of cheque amount plus cost may not award a punishment of imprisonment and may only award penalty plus compensation. But the Court cannot force the complainant to enter into a compromise on deposit of cheque amount or the penalty amount by the accused.  ( IN THE HIGH COURT OF DELHI AT NEW DELHI, Date of Order: 8th October, 2010 M/s Hitek Industries(Bihar) Ltd. & Ors. ... Versus The State of Delhi & Anr. ... )


_ Compounding by both the parties is possible with charges is discretion power of competent court (10%, 15%, 20%) depends on so many circumstances of each case like stage of compromise, costing to judiciary etc.

_ If complainant gets perfect compensation to meat up his financial deficiency, he can definitely give his consent to accused  to enter in compounding.

_ If accused thinks that after wasting the statutory period period of 15 days notice u/s 138(b), at the stage of conviction, he will deposit the cheque amount with some penalties into the court to quit the matter, even without consent of complainant, that deposit will not be accepted by any court to acquit him.

_ If accused makes clear his innocence and defense on his first/second appearance in concerned court and ready/brings to deposit the cheque amount , than court can think if it seams to genuine, may accept the cheque amount to acquit the accused even without consent of complainant…( In the High Court of Punjab and Haryana, at Chandigarh. Date of Decision: 14.10.2010 M/s Sunil Kumar & Company and Another Versus Baltej Singh Sidhu)

_ No compromise or settlement is possible by one of party alone without the consent of other party/parties of case, after facing  proper trial.




The present status with respect to compounding under S.147 of NI Act.


1. any time at any stage if complainant compounds, matter ends. There are many orders of Hon Punjab & Haryana High Court and other High Courts where the accused was acquitted on the grounds that matter was compounded after conviction from the trial court. In such cases question of additional penalty 5%, 10%, 20% does not come for consideration.


2. Now the Hon Apex Court order talks of comppounding penalty of 5%, 10% & 20%, what does it mean, if complainant is voluntary party to compounding, and says matter is closed with accused, I do not think under such circumstances court  will impose any kind of compounding charges so called 5% to 20%.



So this observation of Supreme Court (which I have stated earlier also lacks full thought) can only mean that court can compound the case at any stage (5%,10%,20%) even if complainant is not willing.


This order has made the prosecution a dud piece, accused will never have the fear of jail, as he will keep fighting and finally after 10-12 years he can say to SC ok, now I can pay 200% + 20%, acquitt me.


Till the time SC does not review this order, I do not think any other meaning can be attached to this order. This is my personal opinion only.




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