Rekha v. Golf Links Finance and Resorts Pvt. Ltd. - S.138 NI Act - Compounding After Convicion

Case Information

Case name: Rekha v. Golf Links Finance and Resorts Pvt. Ltd. & Ors.Neutral citation: Not mentioned in the order (only “CRIMINAL APPEAL NOS. /2026 [@ SLP (Crl.) Nos.11754–11755/2025]”).

Coram:Hon’ble Mr. Justice Manoj MisraHon’ble Mr. Justice Manmohan

Judgment date: 30 January 2026 (order signed and pronounced on this date).

Caselaws and citations referred

The Court relies on the following Supreme Court decisions to hold that an offence under Section 138 NI Act is compoundable even after conviction:

1. Damodar S. Prabhu v. Sayed Babalal H., (2010) 5 SCC 663
2. Raj Reddy Kallem v. State of Haryana, (2024) 8 SCC 588
3. B. V. Seshaiah v. State of Telangana and another, (2023) 18 SCC 512
4. Gian Chand Garg v. Harpal Singh and another, 2025 SCC OnLine SC 2317

Statutes / laws referred

The order refers to and/or applies:

• Section 138, Negotiable Instruments Act, 1881 (dishonour of cheque).
• Section 147, Negotiable Instruments Act, 1881 (offence under NI Act compoundable).
• Article 142, Constitution of India (power of Supreme Court to do complete justice).

Brief summary:

The appellant Rekha had been convicted under Section 138 of the Negotiable Instruments Act for dishonour of a cheque of Rs. 4,10,000, with her conviction upheld by the appellate court and by the High Court of Himachal Pradesh in revision. During the pendency of her SLP/appeal before the Supreme Court, the parties entered into a written compromise dated 16.01.2026 by which the complainant acknowledged full payment, issued an NOC, and agreed to compounding of the complaint and acquittal of the appellant. Relying on Section 147 NI Act and precedents holding that Section 138 offences are compoundable even after conviction, the Supreme Court set aside the conviction and allowed the appeals on the basis of the settlement, subject to the appellant depositing Rs. 50,000 as costs with the Supreme Court Legal Services Committee.