Authority: High Court of Judicature at Madras

Order Date: 05-11-2026

Case Overview

  • Parties: Petitioner – P. Vadivel S/o Periyasamy Pillai; Respondent – M. Arulmozhidevan S/o Mari.
  • Case Numbers: Criminal Revision Crl.RC.2526 of 2026 & Crl.M.P.No.21624 of 2026; original criminal case C.C.No.1332 of 2020 (Metropolitan Magistrate‑III, George Town, Chennai); appellate case Crl.A.No.278 of 2025 (XVII Additional City Civil Court, Chennai).
  • Background: The petitioner was convicted under Section 138 of the Negotiable Instruments Act for a cheque bounce, sentenced to two years simple imprisonment and ordered to pay compensation of Rs 5,00,000. The conviction was affirmed by the appellate court on 09‑Mar‑2026.
  • Revision Petition: Filed on 25‑Sep‑2026 under Section 438 of the BNSS r/w Section 442, seeking to set aside the appellate order.
  • Settlement: On 04‑Nov‑2026 the parties executed a Joint Memo of Compromise. The petitioner paid Rs 5,00,000 by Demand Draft No. 003984 dated 27‑Sep‑2026 in the name of Sri Sai Sakthi Steels (respondent’s company). The respondent acknowledged receipt and waived any further claim on two cheques (Nos. 972602 dated 21‑Sep‑2020 for Rs 3,00,000 and 647216 dated 21‑Sep‑2020 for Rs 2,00,000) drawn on UCO Bank.
  • Legal Provisions Cited: Section 147 of the Negotiable Instruments Act (offences are compoundable); Section 359 of the Bharatiya Nyaya Sanhita, 2023 (compounding of offences); relevant Supreme Court judgments (Damodar S. Prabhu vs Sayed Babalal H, Meters & Instruments Pvt Ltd vs Kanchan Mehta, Vinay Devanna Nayak vs Ryot Seva Sahkari Bank) and Gujarat High Court decision (Kripal Singh Pratap Singh Ori vs Salvinder Kaur Hardip Singh) supporting compounding at any stage.
  • Counsel Submissions: Petitioner's counsel argued inherent power of the High Court to compound the offence and cited the above precedents. The State’s counsel opposed, stating the conviction was already affirmed and compounding would misuse the process.

Final Outcome

  • The Court exercised its inherent power under Section 359 BNSS to compound the offence under Section 147 NI Act.
  • The conviction and two‑year imprisonment dated 06‑Nov‑2024 (Metropolitan Magistrate) and affirmed on 09‑Mar‑2026 (XVII Addl. City Civil Court) are annulled.
  • The petitioner, P. Vadivel, is acquitted and ordered to be released from jail forthwith without conditions.
  • All related miscellaneous petitions, if any, are closed.

Topics: Cheque Bounce, Compounding of Offence, Criminal Revision