A.Perumal v. R.Selvam
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 12-06-2026
CORAM
THE HONOURABLE MR JUSTICE M. NIRMAL KUMAR A.Perumal Petitioner(s) Vs R.Selvam Respondent(s) PRAYER This criminal original petition is preferred under section 528 of the BNSS, 2023, seeking to permit the petitioner and the respondent to compound the offence under section 138 NI Act, based on the Memorandum of Compromises dated 07.03.2026 entered by both the parties, relating to the order of Conviction passed in judgement dated 01.03.2024 passed by the Learned Judicial Magistrate No.1, Mettur in CC.No.94 of 2023, and the same was confirmed by judgement dated 14.02.2025 passed by the Hon'ble Additional District Judge (Fast Track Court), Mettur in Crl.A.No.74 of 2024 and the same was confirmed by this Hon'ble Court by Judgement dated 09.02.2026 in Crl.R.C.No.2268 of 2025 and thus render justice.
For Petitioner(s):
Mr.L.Mouli
ORDER
This criminal original petition has been filed by the petitioner seeking to 1/10
compound the offence under section 138 of the Negotiable Instruments Act on the basis of the memorandum of compromise entered into between the petitioner and the respondent on 07.03.2026.
2.The learned counsel appearing for the petitioner is before this court. It is the submission of the learned counsel that on the complaint of the respondent, a case in C.C.No.94 of 2023 came to be registered under Section 138 of the Negotiable Instruments Act, 1881 before the learned Judicial Magistrate No.I, Mettur. It was the complaint that the petitioner had borrowed Rs,15 lakhs from the respondent and as the petitioner could not repay the same within the agreed period, the respondent demanded the petitioner to repay the same. The petitioner had issued a cheque of Rs.15 lakhs to the respondent and when the same was presented before the bank for encashment, the cheque was returned as 'Funds insufficient'. Therefore, the respondent initiated proceedings under the NI Act and filed the above case in C.C.No.94 of 2023. 3.
It was contended that after the completion of the trial, the trial court, namely the learned Judicial Magistrate-I, Mettur had convicted the petitioner under section 138 of the NI Act and sentenced him to undergo one year simple imprisonment and also directed the petitioner herein to pay Rs.15 lakhs as compensation to the complainant and in default to undergo a simple imprisonment for three months.
in Criminal Appeal No.74 of 2024 and on contest, the same was dismissed confirming the conviction and sentence imposed by the trial court, against which the petitioner herein preferred a criminal revision case before the High Court in Crl.R.C.No.2268 of 2025. This court vide order dated 09.02.2026 dismissed the revision.
4.Now, it is the contention of the learned counsel for the petitioner that after the aforesaid order of the High Court, both the petitioner and the respondent settled the matter. The petitioner had paid the full cheque amount of Rs.15 lakhs by way of demand draft and the respondent complainant had also received the same. They have entered into a memorandum of compromise dated 07.03.2026. As per the memorandum of compromise, the respondent had also agreed to compound the offence against the petitioner and therefore, the learned counsel requested this court to make an order compounding the offence. 5.In the light of the above, it is seen that the petitioner has filed the present original petition seeking for compounding the offence post conviction.
It is also seen that the petitioner has settled the entire due payable to the respondent by way of demand draft and the same was also received by the respondent. Now a memorandum of compromise dated 07.03.
action against the petitioner.
6.The scanned reproduction of the memorandum of compromise dated 07.03.2026 is as follows:
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7.A photocopy of the demand draft taken by the petitioner for a sum of Rs.15,00,000/- in favour of the respondent towards settlement of dues is as follows:
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8.The Hon'ble Apex Court, in the case of Parsharvanath Weld Wires Pvt. Ltd. & Anr. v. State of Chhattisgarh & Anr., reported in 2026 LiveLaw SC 585 following the decision in Gian Chand Garg v. Harpal Singh and Another reported in 2025 SCC OnLine SC 2317, allowed the compounding of the offence under Section 147 of the Negotiable Instruments Act even after the conviction had been confirmed by the Appellate Court and subsequently affirmed by the High Court in revision.
9.On a perusal of the memorandum of compromise, it is clear that the complainant had agreed to compound the offence voluntarily and without any coercion. Further, in view of the settlement arrived at between the parties and the consent expressed by the complainant for compounding the offence, this court is satisfied that the dispute between the parties is amicably resolved/settled. Considering the decision of the Hon'ble Supreme Court in Parsharvanath Weld Wires Pvt. Ltd. supra , and having regard to section 147 of the Negotiable Instrments Act, 1881, the offence under section 138 of the Negotiable Instruments Act can be permitted to be compounded post conviction. 10.In the light of the above, the affidavits filed by the petitioner and the respondent are taken note of and the memorandum of compromise entered into between the parties dated 07.03.2026 is also taken on record. It is seen that both 8/10
parties are willing to compound the offence. Therefore, the conviction and sentence passed in C.C.No.94 of 2023 by the Judicial Magistrate-I, Mettur dated 01.03.2024 which was confirmed in Criminal Appeal No.74 of 2024 by the learned Additional District Judge Mettur by judgment dated 14.02.2025 and also confirmed by this Court in Crl.R.C.No.2268 of 2025 dated 09.02.2026 is set aside on the basis of the compromise entered into between the petitioner and the respondent. Accordingly, this Criminal Original Petition is allowed. No costs. 12-06-2026 Index:Yes/No Speaking/Non-speaking order Internet:Yes vvk To 1.Additional District Judge, Fast Track Court, Mettur 2.The Judicial Magistrate-I Mettur.
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M.NIRMAL KUMAR J.
vvk CRL OP No. 9628 of 12-06-2026 10/10