Case Law Analysis
|Allahabad High Court
Section 138 NI Act | Compounding Permitted If Accused Appears Within 3 Weeks & Applies Under Damodar S. Prabhu Guidelines : Allahabad HC
The Allahabad High Court has ruled that while cheque dishonour proceedings under Section 138 NI Act cannot be quashed, compounding is permissible if the accused appears before the magistrate within three weeks and files a compounding application as per Damodar S. Prabhu. This creates a time-bound pathway for settlement, offering relief to accused parties while preserving judicial oversight and discouraging delay.