#Acquittal on Settlement

Himachal Pradesh High Court reaffirms that offences under Section 138 of the Negotiable Instruments Act can be compounded even after conviction if parties reach a settlement. The court acquitted the accused upon payment of Rs. 1,72,000 compensation and Rs. 10,000 litigation costs, emphasizing flexibility in dispute resolution for cheque bounce cases.

The Madhya Pradesh High Court acquitted an accused under Section 138 of the Negotiable Instruments Act after parties reached a compromise, even though the offence is non-compoundable. The ruling underscores judicial discretion to prioritize settlement in cheque bounce cases, setting a precedent for similar disputes where parties resolve disputes amicably.