Cheque Dishonour, S.138 of Negotiable Instruments Act, 1881 and the Parameters of Law

Cheque Dishonour, Section 138 of Negotiable Instruments Act, 1881 and the Parameters of Law 

In a recent finding in Gian Chand Garg v. Harpal Singh [2025] GCtR 1465 (SC), it was held that "although dishonour of cheque entails criminal consequence, the legislature by virtue of section 147 of the NI Act, 1881 has made it compoundable notwithstanding the provisions of the Code of Criminal Procedure, 1973 and the same can be compounded at any stage of the proceedings especially when the parties have themselves arrived at a voluntary compromise." (pg.4)