The High Court of Himachal Pradesh has ruled that an offence punishable under Section 138 of the Negotiable Instruments Act (NI Act) cannot be compounded under Section 147 of the Act without the explicit consent of the complainant.

Justice Rakesh Kainthla dismissed an application for compounding an offence, holding that a court cannot compel a complainant to give consent for compromise, even if the accused has deposited the compensation amount awarded by the Trial Court.

The key legal issue before the Court was whether a criminal proceeding under Section 138 of the NI Act could be compounded under Section 147 solely on the basis that the accused had deposited the compensation amount, despite the complainant’s refusal to settle. The Court answered in the negative, reiterating that the “c

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