If an accused person has fully compensated the complainant in a cheque bounce case (Section 138 of the Negotiable Instruments Act), but the complainant refuses to settle, the accused has the following legal remedies:
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✅ 1. File a Petition Under Section 482 CrPC (Quashing of Proceedings)
The accused can approach the High Court under Section 482 of the Criminal Procedure Code to:
• Quash the criminal proceedings, showing that the liability has been discharged,
• Argue that continuation of the case is an abuse of the legal process and against the spirit of justice.
Courts have held that if the complainant has been fully compensated, continuing the trial serves no purpose and may be unjust.
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✅ 2. Seek Compounding of Offence (Section 147 of NI Act)
• Section 138 cases are compoundable under Section 147 of the NI Act.
• If the complainant refuses to cooperate, the court may still consider recorded settlement evidence (like payment proof, affidavits, etc.) to permit compounding in the interest of justice.
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✅ 3. Use Settlement as a Defence During Trial
If quashing is not granted, the accused can:
• Present evidence of full payment and lack of remaining liability,
• Argue for acquittal or minimal penalty during the trial or at sentencing.
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⚖️ Relevant Case Laws:
• M/s. Meters and Instruments v. Kanchan Mehta (2017) – SC held that courts can close proceedings in cheque cases even if the complainant opposes, if compensation is paid.
• R. Vijayan v. Baby (2012) – Compensation and intention of the parties are relevant factors.
Accused can seek legal remedies through the court . As Supreme Court has ruled that even if the complainant does not consent, the court may quash the criminal proceedings if the accused has been duly compensated, as continuing the case would serve no purpose . This is particularly relevant in cases under Section 138 of the Negotiable Instruments Act, where the primary objective is to compensate the complainant. Therefore, the accused can file a petition in the appropriate court, requesting the quashing of the proceedings based on full compensation.
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