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[Landmark Judgement] Ajay Kumar Radheyshyam Goenka V. Tourism Finance Corpn. of India Ltd., (2023)

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Landmark Judgment Law Insider (1)

Published on: 14 September 2023 at 09:45 IST

Court: Supreme Court of India

Citation: Ajay Kumar Radheyshyam Goenka V. Tourism Finance Corpn. of India Ltd., (2023)

Honourable Supreme Court of India has explained the key difference between Compromise, Compounding and Quashing.

  1. Compromise is settlement of dispute any dispute between the parties if the terms are not illegal. However, it may not have legal sanctity.
  2. Compounding is a decision of the victim not to continue with prosecution in accordance with the statutory provision contained under Section 320 of the Code of Criminal Procedure, 1973.
  3. Quashing is challenging the basis of the prosecution by invoking inherent powers of the Hon’ble Constitutional Court under Article 32 / Article 226 of the Constitution of India or Section 482 of the Code of Criminal Procedure, 1973.

92. ‘Compounding’ and ‘quashing’ are not synonymous terms. In law, they have different meanings and consequences. They arise from different situations and operate in different fields and stages. There is no apparent legal interdependence or interlink to the extent that one could exist only if the conditions of the other were satisfied or vice-versa. Quashing is one of the facets of inherent powers, while compounding of an offence being a statutory expression contained under Section 320 the CrPC is entirely a different concept.

93. The expressions ‘compromise’ and ‘compounding’ are not synonyms in criminal jurisprudence even though these expressions are usually used without any distinction. Any dispute can be compromised between the parties if the terms are not illegal. But only a compoundable offence allowed by law can be compounded. A dispute relating to a crime can be compromised even before the case is registered, and in that case, victim of the crime may refuse to file a complaint. But if in spite of compromise, if he files a complaint and court finds that what is compromised is a compoundable offence, depending upon the facts and circumstances of each case Magistrate can refuse to take cognizance, or acquit the accused as offence was compounded or the complaint can be quashed in proceedings under Section 482 of the CrPC.

Drafted By Abhijit Mishra