FACTS:This case arose from a complaint filed by A.S. Pharma Pvt. Ltd. under Section 138 of the Negotiable Instruments Act (NI Act) regarding the dishonour of a cheque due to insufficient funds. The respondents filed an application to compound the offense, which the Trial Court dismissed. However, the High Court allowed the compounding despite the appellants’ lack of consent, invoking its inherent power under Section 482 of the Cr.P.C.

Issue: Is the High Court empowered to quash a cheque dishonour complaint under Section 482 Cr.P.C. when the complainant has not consented to the compounding?

OBSERVATION:The Supreme Court clarified that cases of cheque dishonour can only be compounded under Section 147 of the NI Act with the complainant's consent. The Court found that the High Court erred in compounding the offense without the appellants' agreement. Nonetheless, considering the unique circumstances, including the respondents' substantial deposit, the Court chose to quash the proceedings, stating it would be pointless to restore them for continuation in the Trial Court.