The Madurai Bench of the Madras High Court, in a significant ruling, has held that an offence under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) can be compounded at any stage, including during a revision proceeding, even after a conviction has been upheld by an appellate court. Justice Shamim Ahmed ruled that Section 147 of the NI Act, being a special provision, has an overriding effect on the general provisions for compounding offences contained in the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). The court consequently set aside the conviction and sentence of a petitioner after the parties entered into a compromise.

Background of the Case

The case originated from a judgment by the District Munsif cum Judicial Magistrate, Peraiyur, in S.T.C.No.643 of 2016, where th

See Full Page