M/S S & S Industries & Enterprs.Ld.& Ors vs M/S Fortress Financial Services Ltd

The Supreme Court held that the offence under Section 138 of the Negotiable Instruments Act is compoundable, allowing the parties to compound the offence in this case. The Court set aside the High Court's order that had remanded the matter for disposal on merits, and dropped the prosecution against the appellants. The Court directed the respondent to withdraw the deposited amount along with interest, and the appellants were required to pay an additional sum to the complainant, totaling Rupees fourteen lakhs.