Question

Compounding of an offence under Section 138 is permitted under which section introduced by the 2002 amendment?

Q: Answer-Compounding of an offence under Section 138 is permitted under which section introduced by the 2002...

Section 147 of the Negotiable Instruments Act, inserted by the amendment of 2002, provides that every offence punishable under the Act shall be compoundable. This allows the parties to a cheque dishonour case to settle the matter, with the complainant agreeing to compound the offence, often upon payment of the cheque amount and costs. Compounding helps reduce the burden on courts and encourages settlement, since the primary aim is recovery of the amount due.