S.138 NI Act | Conviction For Cheque Dishonour Can Be Quashed Based On Settlement Between Parties : Supreme Court

Gursimran Kaur Bakshi

2 Jun 2026 2:38 PM IST

  • S.138 NI Act | Conviction For Cheque Dishonour Can Be Quashed Based On Settlement Between Parties : Supreme Court

    The Supreme Court recently allowed the compounding of offences under Section 147(offences to be compoundable) of the Negotiable Instruments Act after a settlement took place between the parties. Consequently, it set aside the conviction and sentence imposed under Section 138 of the NI Act for the offence of dishonour of a cheque for the insufficiency of funds.A bench comprising Justice...

    Gursimran Kaur Bakshi

    Gursimran Kaur Bakshi

    Gursimran is the Principal Correspondent with LiveLaw for the Supreme Court. She can be reached out at: simrankaurbakshi@livelaw.in

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