S.147 NI Act | Post-Conviction Compounding Of Offences Is Permissible: Himachal Pradesh High Court

The Himachal Pradesh High Court recently observed that a Court, while exercising powers under Section 147 of the Negotiable Instruments Act, can proceed to compound the offences even after recording of conviction by the courts below.

The observation came from Justice Sandeep Sharma in a case where the revision Petitioner, who was convicted under Section 138 of the NI Act by the Magistrate Court and was aggrieved by subsequent dismissal of appeal by the Sessions Court, had agreed to pay the amount due and settle the matter.

The Petitioner had thus sought compounding of offences.

The High Court thus allowed the prayer and offence committed by the Petitioner under Section 138 NI Act was ordered to be compounded.

Reliance was placed on Damodar S. Prabhu V. Sayed Babalal H. (2010) 5 SCC 663, wherein the Apex Court has categorically held that court, while exercising power under Section 147 of the Act, can proceed to compound the offence even after recording of conviction by the courts below.

Case Title : SHRI KANTU RAM v SHRI BEER SINGH

Citation : 2022 LiveLaw (HP) 28