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...