Yes, the offence under Section 138 of the Negotiable Instruments Act is a compoundable offence
This means the complainant (payee) and the accused (drawer) can settle the matter out of court, and the case can be withdrawn with court permission.
Supported by Section 147 of the NI Act (as amended), which makes offences under the Act compoundable.

An offence under Section 138 of the Negotiable Instruments Act (NI Act) is a compoundable offence. This means that the complainant and the accused can settle the matter amicably and withdraw the case with court permission. Section 147 of the NI Act explicitly allows for the compounding of offences under Section 138.