K.Chandran vs A. Karuppasamy

The Supreme Court, in Criminal Appeal No. 157 of 2009, held that a compromise settlement between the parties, wherein the respondent acknowledged receipt of full payment for a cheque issued, justifies quashing of proceedings under Section 138 of the Negotiable Instruments Act. The Court emphasized that once the parties have settled their dispute and agreed to compound the offence, it is appropriate to set aside the impugned order. Consequently, the appeal was disposed of in accordance with the terms of the compromise settlement.