Case:- GIAN CHAND GARG vs. HARPAL SINGH & ANR
Citation:- SLP(Criminal) 8050/2025
Date:- 11.08.2025
Supreme Court Bench:- Justice Aravind Kumar and Justice Sandeep Mehta
The Supreme Court has held that once a complainant signs a compromise deed acknowledging receipt of the full settlement amount, the conviction under Section 138 of the Negotiable Instruments Act cannot be sustained.
Important Points:
- The Hon’ble Supreme Court held that once a complainant signs a compromise deed acknowledging full settlement, conviction under Section 138 Negotiable Instruments Act (NI Act) cannot stand.
- The Hon’ble Punjab & Haryana High Court earlier refused to modify its order that upheld the conviction, saying the application based on the settlement was not maintainable.
- The Hon’ble Supreme Court ruled that once the complainant voluntarily accepts full and final payment, the continuation of conviction has no legal value
- Accordingly, the appeal was allowed, the High Court’s order was set aside, and the accused was acquitted.
If the complainant has taken the full settlement, a cheque bounce conviction under Section 138 NI Act cannot continue.
