Compoundable Offence

CrPC Section 320 / BNSS Section 359

An offence that can be settled between the accused and the victim/complainant, with court permission. NI Act Section 138 (cheque bounce) is a compoundable offence — the drawer and payee can settle the matter out of court even during appeal, and the court will acquit the accused. Most serious banking fraud offences under IPC S.409 and S.420 are non-compoundable.

In practice, compoundability decides whether parties can buy their way out of a criminal case by settlement. For a Section 138 NI Act cheque-bounce matter — a compoundable offence — the drawer and payee can settle even at the appellate stage, and on payment the court records the compromise and acquits the accused; this makes cheque cases overwhelmingly settlement-driven rather than trial-driven. For a defaulting drawer, compounding is the cleanest exit; for a payee, it converts a criminal complaint into leverage to recover the money. The contrast is sharp with serious banking-fraud offences, which are typically non-compoundable, so no private settlement can end the prosecution — recovery and criminal liability run on separate tracks. The procedural anchor is Section 320 CrPC, now Section 359 BNSS, which lists what may be compounded and when court permission is needed. The error to avoid is assuming any criminal case can be settled away; misjudging compoundability wastes a defence strategy. Well-advised parties confirm the offence's status before negotiating.