SETTLEMENT & APPEALS

Settlement and Compounding of Cheque Bounce Cases

Section 147 makes offences under the NI Act compoundable. A settlement should be recorded clearly, with payment terms, dates, consequences of default and appropriate court steps.

Content review date: 17 October 2026

Settlement and compounding
Illustrative visual for general legal education. Check the applicable statute and current judgments for case-specific decisions.
Important: This page is general legal information. Check the current statute, binding judgments and facts of the individual case before taking action.

Written settlement terms

Record the total settlement amount, payment dates, payment mode, treatment of pending proceedings and what happens if a payment is missed.

Court record

Do not assume that a private conversation or unsigned draft automatically ends the criminal complaint. Follow the applicable court process for compounding or recording settlement.

Installments

If payment is in installments, specify each due date and whether any concession depends on full and timely compliance.

Default provisions

Draft clear, lawful terms about default and the parties’ remedies. Avoid clauses that purport to override the court or applicable law.

Costs and timing

The procedural stage may affect the court’s approach and any costs. Seek case-specific advice before signing.

Practical takeaway

A settlement should be voluntary, unambiguous and consistent with the law and the court’s directions.

PROFESSIONAL INFORMATION

Need guidance on your matter?

Explore the profile of Advocate Javed Ahmad or use the contact options if you need to discuss a specific cheque bounce issue.

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PROFESSIONAL LOCATION

Advocate Javed Ahmad

Chamber No. D-522(B), Karkardooma Court, Shahdara, Delhi – 110032

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