Crl.RC.2189 of 2025 1 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 22-07-2026 CORAM THE HON'BLE MR.JUSTICE SHAMIM AHMED CRL RC No. 2189 of 2025 Murali .. Petitioners Vs J. Dillibabu ..Respondent Criminal Revision Case filed under sections 438 r/w.442 of BNSS, 2023 to allow the Criminal Revision Case by setting aside the judgment dated 11.07.2025 passed in Crl.A.No.643 of 2024 on the file of XX Addl. Sessions City Civil court, Chennai, confirming the judgment dated 01.08.2024 passed in STC.No.3105 of 2023 on the file of the XXVI Metropolitan Magistrate, Egmore, Chennai. For Petitioner(s): Mr.C.Vigneshwaran https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 2 For Respondent(s): Mr. K.A.Mariappan ORDER Heard Mr.C.Vigneshwaran, learned counsel appearing for the Petitioner and Mr.K.A.Mariappan, learned counsel for the Respondent and Mr.M.M.I.Khaleel learned Government Advocate (Criminal Side) appearing for the State. 2. This Criminal Revision Petition has been filed by the petitioner to set aside the judgment passed by the XX Addl. Sessions City Civil Court, Chennai in C.A.No.643 of 2024, dated 11.07.2025 confirming the order passed by the learned XXVI Metropolitan Magistrate, Egmore, Chennai in STC.No.3105 of 2023, dated 01.08.2024 3. The facts of the case in a nutshell, led to filing of this Criminal Revision Petition and necessary for disposal of the same, are as follows:- a) The Petitioner was convicted and sentenced for the offence under Section 138 of the Negotiable Instruments Act, by the XXVI Metropolitan Magistrate, Egmore, Chennai made in https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 3 STC.No.3105 of 2023 by the judgment dated 01.08.2024, to undergo SI for 3 months and to pay the cheque amount of Rs.4,85,000/- to the complainant, in default, to undergo SI for 15 days. Aggrieved by the order of the Trial Court, the Petitioner filed a Criminal Appeal in C.A.No.643 of 2024 before the learned XX Addl. Sessions City Civil Court, Chennai. b) The learned First Appellate Court has confirmed the judgment passed by the trial court by dismissing the said Appeal vide order dated 01.08.2024. Aggrieved by the same, the present Criminal Revision Petition has been filed. 4. Pending, Criminal Revision, the parties to the Revision have amicably settled the matter among themselves and have entered into a Settlement Agreement on 10.03.2026. On 29.01.2026, when the matter is taken up for hearing, at the request of both parties, matter was referred before the mediation, where, on the basis of the Settlement Agreement, dated 10.03.2026, the matter was reported to be settled and the mediation report dated 10.03.2026, to that effect has also been sent to the Court along with Settlement Agreement dated https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 4 10.03.2026. The Respondent viz., J. Dillibabu and the petitioner viz.,Murali have entered into a Settlement Agreement dated 10.03.2026 and the same is taken on record and the terms of the above said Settlement Agreement is extracted hereunder: ‘SETTLEMENT AGREEMENT ‘This SETTLEMENT AGREEMENT entered into on 10.03.2026 between, Murali, S/o.Mani, aged 49 years, residing at No.10/35, Annamalai Nagar, 2nd Street, Mettupalayam, West Mambalam, Chennai 600 033 1st party. And J. Dillibabu, S/o.Jayachandran, aged 47 years, residing at No.38/4, 5th Street, Kambar Nagar, Chennai 600 082 - 2nd Party. WHEREAS 1. Disputes and differences had arisen between the Parties hereto. A complaint under section 138 of the Negotiable Instruments Act was filed by the 2nd Party herein in STC No.3105 of 2023 before the XXVI Metropolitan Magistrate Court, Egmore,Chennai, in respect of the dishonour of Cheque No.585609 dated 24.02.2023. The said case ended in the conviction of the 1st Party herein by Judgment dated 01.08.2024. 2. Aggrieved by the said conviction, the 1st party herein preferred an appeal in Crl.A.No.643 of 2024 before the XX Addl. Sessions Court, City Civil Court, Chennai. By judgment dated 11.07.2025, the said appeal was dismissed. 3. Thereafter, the 1st Party herein preferred a criminal Revision before the Hon’ble Madras High Court challenging the dismissal of the above Criminal Appeal in Crl.R.C.No.2189 of 2025. The said Criminal Revision Petition was referred to Mediation/Conciliation by order dated 29.01.2026. https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 5 4. The Parties herein mutually agreed that Mr.Vijayakumar would act as the Mediator/Conciliator for resolving the disputes between them. 5. Several meetings were held during the process of Mediation/Conciliation on 09.02.2026 and 19.02.2026. With the assistance of the Mediator/Conciliator, the Parties voluntarily arrived at an amicable settlement resolving all disputes and differences between them in respect of the proceedings pending before the Courts. 6. The Parties hereto confirm and declare that they have voluntarily, of their own free will and consent, entered into this Settlement Agreement in the presence of the Mediator/Conciliator. 7. The following Settlement has been arrived at between the parties: A. The 1st Party herein agrees to pay a total sum of Rs.3,25,000/- (Rupees Three Lakhs Twenty Five Thousand only) to the 2nd Party herein. B. The 1st Party herein has taken a demand Draft for a sum of rs.1,75,000/- (Rupees one lakh seventy five thousand only) vide DD No.348261 dated 06.03.2026 drawn in favour of the 2nd party herein, and the same has been received by the 2nd party. The 1st party further agrees to pay the balance sum of Rs.1,50,000/- (Rupees one lakh fifty Thousand only) on or before 10.04.2026. C. Apart from the above amounts, the 1st Party herein has already deposited a sum of Rs.97,000/- on 24.10.2024 which is lying to the credit of STC No.3105 of 2023. The 2nd party herein is entitled to withdraw the said amount in accordance with law. Accordingly, the 2nd party herein shall receive a total sum of Rs.4,22,000/- (Rupees four lakhs twenty two thousand only) in full and final settlement of the disputes between the parties. D. The 2nd party hereby agrees and undertakes to withdraw the suit filed against the 1st party in O.S.No.5380 of 2025 pending on the file of the XX assistant City Civil court, Chennai, which arises out of the same subject matter that will be settled between the parties through Lok Adalat for the purpose of refund of court fee paid in the suit by the 2nd party herein. https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 6 E. By signing this Agreement, the Parties hereto declare that they have no further claims or demands against each other in respect of Crl.R.C.No.2189 of 2025 pending before the Hon’ble Madras High Court and O. S.No.5380 of 2025 pending before the XX assistant City Civil Court, Chennai, and that all disputes and differences in this regard have been amicably settled through the process of Mediation/Conciliation.’ 5. Learned counsel for the Revision Petitioner submits that pending Revision, the matter has been referred to mediation before Tamil Nadu Mediation and Conciliation Centre, High Court, Madras, wherein, the matter was settled between the parties, based on the settlement arrived among themselves and both the parties have entered into a Settlement Agreement, dated 10.03.2026 duly singed by the parties and their respective counsels who are present before this Court and to that effect, the Criminal Revision case shall be disposed of in accordance with the terms and conditions as contained therein. 6. Mr.K.A. Mariappan, learned counsel for the Respondent submits that the entire amount has been deposited by the Revision Petitioner and no amount is due against the Revision Petitioner. He further submits that the Respondent is not interested in continuing the case against the Revision Petitioner. https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 7 7. Learned counsel for the Revision Petitioner further submits that the present Revision has been filed on 26.08.2022 before this Court and on the basis of change in circumstances, as the parties have entered into a Settlement Agreement, it was prayed to this Court to compound the offence. It was further argued by the learned counsel for the Revision Petitioner that this Court has inherent powers to compound the offence, so that, ends of justice could be secured as the object of Negotiable Instruments Act is primarily compensatory and not punitive and moreover Section 147 of NI Act would have an overriding effect on Section 359 Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) Irrespective of which stage, the parties are compromising with the kind leave of this Hon'ble Court. 8. 8. In support of his arguments, learned counsel for the Revision Petitioner has submitted that in the case of Damodar S. Prabhu vs.Sayed Babalal H reported at 2010 (2) SCC (Cri) 1328, the Hon'ble Apex Court had formulated the guidelines for compounding the offenceunder section 138 N.I. Act wherein in para 21, it was pleased to observed as under : https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 8 "With regard to the progression of litigation in cheque bouncing cases, the learned Attorney General has urged this Court to frame guidelines for a graded scheme of imposing costs on parties who unduly delay compounding of the offence. It was submitted that the requirement of deposit of the costs will act as a deterrent for delayed composition, since at present, free and easy compounding of offences at any stage, however belated, gives an incentive to the drawer of the cheque to delay settling the cases for years. An application for compounding made after several years not only results in the system being burdened but the complainant is also deprived of effective justice. In view of this submission, we direct that the following guidelines be followed:- THE GUIDELINES (i) In the circumstances, it is proposed as follows: (a) That directions can be given that the Writ of Summons be suitably modified making it clear to the accused that he could make an application for compounding of the offences at the first or second hearing of the case and that if such an application is made, compounding may be allowed by the court without imposing any costs on the accused. (b) If the accused does not make an application for compounding as aforesaid, then if an application for compounding is made before the Magistrate at a subsequent stage,compounding can be allowed subject to the condition that the accused will be required to pay 10% of the cheque amount to be deposited as a condition for compounding with the Legal Services Authority, or such authority as the Court deems fit. (c) Similarly, if the application for compounding is made before the Sessions Court or a High Court in revision or appeal, such compounding may be allowed on the condition https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 9 that the accused pays 15% of the cheque amount by way of costs. (d) Finally, if the application for compounding is made before the Supreme Court, the figure would increase to 20% of the cheque amount." 9. Learned counsel for the Revision petitioner also submitted that in the case of M/s Meters and Instruments Private Limited and another vs. Kanchan Mehta reported at 2017 (7) Supreme 558, the Hon'ble the Apex Court in para 18, was pleased to observe as under : “i) Offence under Section 138 of the Act is primarily a civil wrong. Burden of proof is on accused in view presumption under Section 139 but the standard of such proof is "preponderance of probabilities". The same has to be normally tried summarily as per provisions of summary trial under the Cr.P.C. but with such variation as may be appropriate to proceedings under Chapter XVII of the Act. Thus read, principle of Section 258 Cr.P.C. will apply and the Court can close the proceedings and discharge the accused on satisfaction that the cheque amount with assessed costs and interest is paid and if there is no reason to proceed with the punitive aspect. (ii)The object of the provision being primarily compensatory, punitive element being mainly with the object of enforcing the compensatory element, compounding at the initial stage has to be encouraged but is not debarred at later stage subject to appropriate compensation as may be found acceptable to the parties or the Court. https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 10 (iii)Though compounding requires consent of both parties, even in absence of such consent, the Court, in the interests of justice, on being satisfied that the complainant has been duly compensated, can in its discretion close the proceedings and discharge the accused. (iv)Procedure for trial of cases under ChapterXVII of the Act has normally to be summary. The discretion of the Magistrate under second proviso to Section 143, to hold that it was undesirable to try the case summarily as sentence of more than one year may have to be passed, is to be exercised after considering the further fact that apart from the sentence ofimprisonment, the Court has jurisdiction under Section357(3) Cr.P.C. to award suitable compensation with default sentence under Section 64 IPC and with further powers of recovery under Section 431 Cr.P.C. With thisapproach, prison sentence of more than one year maynot be required in all cases. (v) Since evidence of the complaint can be given on affidavit, subject to the Court summoning the person giving affidavit and examining him and the bank's slip being prima facie evidence of the dishonor of cheque, it is unnecessary for the Magistrate to record any further preliminary evidence. Such affidavit evidence can be read as evidence at all stages of trial or other proceedings. The manner of examination of the person giving affidavit can be as per Section 264 Cr.P.C. The scheme is to follow summary procedure except where exercise of power under second proviso to Section 143becomes necessary, where sentence of one year may have to be awarded and compensation under Section357(3) is considered inadequate, having regard to the amount of the cheque, the financial capacity and the conduct of the accused or any other circumstances'. https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 11 10. Learned counsel for the Revision Petitioner further relied upon the judgment of Gujarat High Court in the case of Kripal Singh Pratap Singh Ori vs. Salvinder Kaur Hardip Singh reported in 2004 Crl. L. J.3786 wherein, the Gujarat High Court was pleased to observe as under:- “31. In the circumstances, it is hereby declared that the compromise arrived between the parties to this litigation out of court is accepted as genuine and the order of conviction and sentence passed by the learned JMFC, Vadodara and confirmed in appeal by the learned Sessions Judge, Fast Track Court, Vadodara, therefore, on the given set of facts are hereby quashed and set aside as this court intends, otherwise to secure the ends of justice as provided under section 482Cr.P.C. Obviously the order disposing Revision Application would not have any enforceable effect." 11. Learned counsel for the Revision Petitioner has also relied upon the judgment of Hon'ble the Apex Court in the case of VinayDevanna Nayak vs. Ryot Seva Sahkari Bank Limited reported in AIR2008 SC 716, wherein the Hon'ble Apex Court was pleased to observe as under : “18. Taking into consideration even the said provision(Section 147) and the primary object underlying Section 138, in our judgment, there is no reason to refuse compromise between the parties. We, therefore,dispose of the appeal on the basis of the settlement arrived at between the appellant and the respondent. https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 12 19. For the foregoing reasons the appeal deserves to be allowed and is accordingly allowed by holding that since the matter has been compromised between the parties and the amount of Rs.45,000/- has been paid bythe appellant towards full and final settlement to the respondent-bank towards its dues, the appellant is entitled to acquittal. The order of conviction and sentence recorded by all courts is set aside and he is acquitted of the charge levelled against him." 12. Learned counsel for the Revision Petitioner has argued that the law regarding compounding of offences under the N.I. Act is very clear and is no more res integra and the offences under the N.I. Act can be compounded even at any stage of the proceedings. He submits that in terms of the aforesaid law laid down by the Hon'ble Supreme Court, the parties may be permitted to compound the offence and the conviction of the petitioner be set aside. 13. Per contra, Mr.M.M.I. Khaleel, the learned Government Advocate (Criminal Side) appearing for the State, has vehemently opposed the submissions made by the learned counsel for the Revision Petitioner and submits that the Revision Petitioner has already been convicted by the learned trial court and the conviction order had already been upheld by the Appellate Court in the appeal. https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 13 14. The learned Government Advocate (Criminal Side) appearing for the State further submitted that the appeal has been rejected on merit and the Revision Petitioner was convicted, then where the parties or any one of them can be permitted to place compromise and to get the order of acquittal from the Court is the question. He further submitted that the present case is nothing, but a gross misuse of the process of law and thus sentence cannot be compounded on the basis of compromise as filed by the parties. 15. Learned Counsel for the Revision Petitioner submits that this Court has already decided a similar issue vide judgment and order dated19.09.2025 in Crl.R.C.(MD)No.875 of 2025 [K.Balachenniappan VsJeyakrishnan]. The counsel argues that the present revision petitioner's case is fully covered by the aforesaid judgment and prays that the present Revision Petition may be disposed of in the same terms. A copy of the judgment has been placed before the Court for perusal. 16. I have heard the learned counsel for the Revision Petitioner, learned counsel for the Respondent and learned Government Advocate (Criminal Side) appearing for the State and perused the materials placed on record. https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 14 17. Considering the facts as narrated above, the following question arose for consideration. 'Whether the order passed by the Appellate Court confirming the conviction of the trial court under section 138 of Negotiable Instruments Act can be nullified by the High Court on the basis of compromise entered between the parties'. 18. Before answering the aforesaid question as framed, I shall examine the relevant provision of the B.N.S.S, as well as the Negotiable Instrument Act. I may extract Section 359 of B.N.S.S., and Section 147 of Negotiable Instruments Act. Section 359 B.N.S.S. - Compounding of Offences - 1) The offences punishable under the sections of the Bharatiya Nyaya Sanhita, 2023 specified in the first two columns of the Table next following may be compounded by the persons mentioned in the third column of that Table: - 2)The offences punishable under the sections of the Bharatiya Nyaya Sanhita, 2023 specified in the first two columns of the Table next following may, with the permission of the Court before which any prosecution for such offence is pending, be compounded by the persons mentioned in the third column of that Table:-- https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 15 3) When an offence is compoundable under this section, the abetment of such offence or an attempt to commit such offence (when such attempt is itself an offence) or where the accused is liable under subsection(5) of section 3 or section 190 of the BharatiyaNyaya Sanhita, 2023 (45 of 2023), may be compounded in like manner. (4)(a) When the person who would otherwise be competent to compound an offence under this section is a child or of unsound mind, any person competent to contract on his behalf may, with the permission of the Court, compound such offence; (b) When the person who would otherwise be competent to compound an offence under this section is dead, the legal representative, as defined in the Code of Civil Procedure, 1908 (5 of 1908) of such person may, with the consent of the Court, compound such offence. (5) When the accused has been committed for trial or when he has been convicted and an appeal is pending,no composition for the offence shall be allowed without the leave of the Court to which he is committed, or, as the case may be, before which the appeal is to be heard. (6) A High Court or Court of Session acting in the exercise of its powers of revision under section 442 may allow any person to compound any offence which such person is competent to compound under this section (7) No offence shall be compounded if the accused is, by reason of a previous conviction, liable either to enhanced punishment or to a punishment of a different kind for such offence. https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 16 (8) The composition of an offence under this section shall have the effect of an acquittal of the accused with whom the offence has been compounded. (9) No offence shall be compounded except as provided by this section. Section 147 of the Negotiable Instrument Act:- Offences to be compoundable.—Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), every offence punishable under thisAct shall be compoundable. 19. It is well settled that inherent power of the Court can be exercised only when no other remedy is available to the litigants and nor a specific remedy as provided by the statute. It is also well settled that if an effective, alternative remedy is available, the High Court will not exercise its inherent power, especially when the Revision Petitioner may not have availed of that remedy. The power can be exercised by the High Court to secure the ends of justice, prevent abuse of the process of any court and to make such orders as may be necessary to give effect to any order under this Sanhita or Act, depending upon the facts of the given case. This Court can always take note of any miscarriage of justice and prevent the same by exercising its power. These powers are neither limited, nor https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 17 curtailed by any other provision of the Sanhita or Act. However, such inherent powers are to be exercised sparingly and with caution. 20. In the instant case, it is true that the appeal was dismissed and the conviction and sentence was upheld by the appellate court, but it cannot be lost sight of the fact that this Court has power to intervene in exercise of its power only with a view to do the substantial justice or to avoid a miscarriage and the spirit of compromise arrived at between the parties. This is perfectly justified and legal too. 21. I have considered the judgments cited by the learned counsel for the Revision Petitioner as well as by the learned Counsel for the State and other decisions of the Hon'ble Apex Court and I do not think it necessary to enlist those decisions which are taken into consideration for the purpose of the present proceedings. 22. In the instant case, the Revision Petitioner is invoking the inherent power of this court after dismissal of the appeal confirming his conviction and sentence. In these circumstances, I have to examine as to whether for entertaining the aforesaid case, any special circumstances are made out or not, so it can be https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 18 legitimately argued and inferred and held that in all cases where the Revision Petitioner is able to satisfy this Court that there are special circumstances which can be clearly spelt out subsequent proceeding invoking inherent power of this court can be modified and cannot be thrown away on that technical argument as to its sustainability once the contesting parties entered into subsequent compromise. 23. In view of the decisions rendered in the judgment dated 19.09.2025 in Crl.R.C.(MD)No.875 of 2025 [K.Balachenniappan VsJeyakrishnan] and taking into account the fact that the parties have settled the dispute amicably by way of compromise, this Court is of the view that the compounding of the offence as required to be permitted. 24. Accordingly, the present Criminal Revision Case is disposed of in terms of Settlement Agreement, dated 10.03.2026, arrived at between the parties to this litigation out of Court. The impugned judgment passed in C.A.No.643 of 2024, dated 11.07.2025 by the learned XX Addl. Sessions City Civil Court, Chennai confirming the conviction and sentence made in STC.No.3105 of 2023, dated 01.08.2024 on the file of XXVI Metropolitan Magistrate, Egmore, Chennai and sentence under Section 138 of the Negotiable Instruments Act in https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 19 STC.No.3105 of 2023, dated 01.08.2024 stands anulled as this Court intends, otherwise to secure the ends of justice. The Revision Petitioner shall be treated as acquitted on account of compounding of the offence with the complainant/person affected. 25. In the result, ● The Criminal Revision Case is disposed of in terms of Settlement Agreement, dated 10.03.2026. The Settlement Agreement is made as part of the order. ● The impugned conviction and sentence passed in C.A.No.643 of 2024, dated 11.07.2025 by the learned XX Addl. Sessions City Civil Court, Chennai confirming the conviction and sentence made in STC.No.3105 of 2023, dated 01.08.2024 on the file of XXVI Metropolitan Magistrate, Egmore, Chennai, are hereby modified. ● The conviction and sentence imposed on the Revision Petitioner by both the courts below stands anulled. https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 20 ● The Revision Petitioner shall be treated as acquitted on account of compounding of the offence with the complainant/respondent. Consequently, connected miscellaneous petition, if any, is closed. 22.07.2026 Index :Yes / No Internet :Yes / No msr To: 1. The XX Addl. Sessions Judge, City Civil Court, Chennai 2. The XXVI Metropolitan Magistrate, Egmore, Chennai. https://www.mhc.tn.gov.in/judis Crl.RC.2189 of 2025 21 SHAMIM AHMED J. MSR CRL RC No. 2189 of 2015 22.07.2026 https://www.mhc.tn.gov.in/judis