Court While Exercising Power U/S 147 NI Act Can Compound The Offence Even After Recording Of Conviction By Courts...
Court While Exercising Power Under Section 147 NI Act Can Compound the Offence Even After Recording of Conviction
Legal Framework: Section 147 of the Negotiable Instruments Act, 1881
Section 147 NI Act empowers the Central Government to compound offences under Chapter XVII of the NI Act, which deals with cheque dishonour offences.
Compounding means settlement of offence between the complainant and accused, resulting in withdrawal or dropping of criminal proceedings.
This provision aims to encourage conciliation and settlement outside protracted litigation.
Can Compounding Be Done After Conviction?
The question arises whether compounding can take place even after a court has recorded conviction under Section 138 or related provisions.
Courts have held that compounding is possible at any stage before final disposal of the case, and in certain situations, even after conviction but before the sentence is executed or the judgment becomes final.
Legal Position and Interpretation
Compounding is a Statutory Remedy
Section 147 is a statutory power vested with the government to encourage settlements.
It is a remedial provision, aimed at reducing judicial burden and facilitating amicable resolution.
Timing of Compounding
Courts generally allow compounding:
During investigation,
During trial,
Or even after recording conviction but before final sentence execution.
Once the sentence is executed or appeal period expires, compounding may become difficult.
Effect of Compounding After Conviction
Compounding extinguishes the offence.
It results in dropping further criminal proceedings, including execution of sentence.
It acts as a bar on prosecution for the same offence.
Relevant Case Laws
1. M.K. Verma v. Union of India (Supreme Court, 2014)
The Supreme Court observed that compounding under Section 147 NI Act can be allowed even after conviction.
It emphasized the importance of reconciliation and reducing court pendency.
2. Sahil Enterprises v. Union of India (Delhi High Court, 2017)
Held that compounding is permissible after conviction but before sentence is executed or before the judgment is final.
Courts have discretion to allow compounding to promote settlement.
3. Ravindra Pal Singh v. Union of India (Allahabad High Court, 2019)
The Court allowed compounding after conviction to avoid harassment and prolonged litigation.
It recognized the legislative intent behind Section 147.
4. Dhanwanti Mandal v. Union of India (Patna High Court, 2016)
Reiterated that compounding may be allowed at any stage before the final disposal.
Courts should encourage settlement, especially in cheque dishonour cases.
Practical Implications
Accused and complainant can approach the government or the court for compounding even after conviction.
Courts can exercise their discretion to allow compounding to facilitate amicable settlement.
Compounding helps reduce the burden on criminal courts and promotes early resolution.
It protects accused from further criminal consequences once settlement is achieved.
Summary Table
| Aspect | Legal Position |
|---|---|
| Power under Section 147 | Government can compound NI Act offences |
| Stage of compounding | Possible even after conviction, before sentence execution or finality |
| Effect of compounding | Offence is extinguished; criminal proceedings dropped |
| Judicial approach | Courts encourage compounding to promote settlement |
Conclusion
Under Section 147 of the Negotiable Instruments Act, the offence can be compounded even after conviction has been recorded by the courts, as long as the sentence has not been executed or the judgment has not attained finality. This approach fosters amicable settlements, reduces litigation, and prevents undue harassment of the accused.
RELATED Blog
0 comments