Negotiable Instruments Act, 1881–Sec. 138–Parties entered into the agreement and compounded the offence to save themselves from the process of litigation–Respondent no. 2 was duly bound to file a compromise petition before the High Court–By not doing same, he withdrew key information from the High Court which led to an unwarranted confirmation of conviction–Order of conviction is liable to be set aside–Parties can settle the dispute as per the terms of the memorandum of understanding.
