P&H: Dishonour of Cheque - Cannot Compel Compounding In NI Act Cases Without Complainant’s Consent

punjab-haryana
⚖️ Order Date: 18 May 2026
Headnotes

Negotiable Instruments Act, 1881, Ss.138, 147, Criminal Procedure Code, 1973, S.482, Constitution of India, Art.142 — Dishonour of cheque — Compounding — Consent of complainant — Complainant has specifically opposed prayer for compounding and has consistently asserted that petitioner has abused process of law and failed to...

Negotiable Instruments Act, 1881, Ss.138, 147 — Compounding plea at advanced stage — Willingnesss to pay, at highly belated stage after years of protracted litigation and repeated defaults, cannot be itself confer an indefasible right upon accused to seek compunding, partcularly when complainant is not...

Negotiable Instruments Act, 1881, Ss.138, 147 — Dishonour of Cheque - Precedents — Guidelines encouraging early settlement cannot be read to mean that irrespective of conduct of accused and irrespective of surrounding circumstances, compunding must necessarily be permitted in every case. (Para 10)

Constitution of India, Art.142, Criminal Procedure Code, 1972, S.482 -- Power excercised by Hon'ble Supreme Court u/Art.142 of Constitution cannot be equated with jurisdication exercised by High Court u/s.482 Cr.P.C. (Para 10)


Facts of the Case

P&H: Dishonour of Cheque - Cannot Compel Compounding In NI Act Cases Without Complainant’s Consent

The Punjab and Haryana High Court has refused to quash a Magistrate’s order that declined to compound a cheque dishonour case, holding that the complainant’s consent is ordinarily necessary for compounding under Section 147 of the Negotiable Instruments Act (NI Act). 

The case arose from a complaint under Section 138 NI Act filed in 2018. The accused sought compounding on the basis of an alleged 2019 settlement and expressed readiness to pay the balance with interest, attributing earlier defaults to financial difficulties during the pandemic. The complainant opposed, citing repeated delays, breach of the repayment schedule, and lack of bona...

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