M/S New Win Export vs A.Subramaniam

The Supreme Court addressed a complaint under Section 138 of the Negotiable Instruments Act, where the appellants were convicted for issuing a dishonored cheque. The High Court restored the Trial Court's conviction after the Appellate Court acquitted the appellants. However, the parties reached a settlement agreement, with the respondent agreeing to withdraw objections to the conviction. The Court held that the settlement constituted compounding of the offence under Section 147 of the NI Act, allowing the conviction to be set aside under Section 320(5) of the CrPC.