The Supreme Court on Thursday (Sep.25) held that accused persons convicted under Section 138 of the Negotiable Instruments Act, 1881 (cheque dishonour cases) are entitled to the benefit of the Probation of Offenders Act, 1958.

“Consequently, this Court is of the view that not only a voluntary compromise can bring the proceedings under Section 138 NI Act to an end, but the accused under the said offence are entitled to benefit under the Probation of Offenders Act, 1958. ”, the court said.

A bench of Justices Manmohan and NV Anjaria observed that parties may arrive at a compromise regarding the cheque amount, making the offence compoundable under Section 147 of the Negotiable Instruments Act, 1881. However, where the complaint seeks more than the cheque amount, the accused may plead gui

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