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2014 (1) TMI 788 - HC - Companies LawDishonour of Cheque - Failure for repayment of friendly loan - Metropolitan Magistrate acquitted the respondent - Compounding of interest - Settlement outside the Court - Held that:- in view of the non obstante clause contained in the Section, the restrictions and limitations prescribed under the Code of Criminal Procedure with respect to compounding of offences would not be applicable as far as compounding of an offence punishable under the provisions of the aforesaid Act is concerned. Consequently, such an offence can be compounded at any stage before the sentence, if any awarded to an accused under the provisions of the aforesaid Act is fully executed. Hence, there is no legal bar to the compounding of such an offence, either during or even after disposal of an appeal filed either by the accused or by the complainant. Since Section 147 of the N.I. Act does not require permission of the Court for compounding such an offence , no such permission is necessary and the parties therefore can enter into a compromise outside the Court and then get the same recorded in the Court at any point of time before the sentence is fully executed - considering the settlement between the parties, the respondent before this court is acquitted of the charge under Section 138 of the N.I. Act, subject to her depositing 15% of the cheque amount by way of costs with Delhi Legal Services Authority within one month - Appeal disposed of.
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