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Compoundable offences

August 4, 2022

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This article is written by Shraddha Jain of the Institute of Law, Nirma University. This article provides a detailed analysis of compoundable offences. It focuses on the difference between compoundable and non-compoundable offences, the nature and effect of compoundable offences, legal provisions dealing with compoundable offences, and some case laws dealing with this issue.

This article has been published by Sneha Mahawar.

Table of Contents

Introduction

We have all heard the maxim “interest reipublicae ut sit finis litium”. This Latin maxim indicates that it would be in the best interests of the state to keep litigation to a minimum. There have been several cases pending before the high court and other subordinate courts for a long time. The legislation provides the criminal justice system with an effective tool that, when used, may drastically decrease the time it takes to resolve a case. This tool is a compounding of offence.

What are compoundable offences

Compoundable offences are the offences which are discussed in Section 320 of the Code of Criminal Procedure (CrPC), 1973. These are such offences in which the aggrieved person (the person who filed the complaint, i.e., the complainant) decides to dismiss the allegations against the accused. These settlements, however, ought to be ‘in utmost good faith’ and should not be made for any compensation for which the plaintiff is not eligible. Compromise of a compoundable crime can be undertaken with the consent of the court or without consent. The plaintiff can request permission to compound the offence in the court in which the petition was originally filed.

Compounding an offence indicates that the individual with whom the crime has been perpetrated has acquired some compensation from the accused, not exclusively of monetary nature, to avoid the litigation process.

There are some crimes in which the parties concerned might reach a settlement when the proceedings of the court are going on and further proceedings in the court will be suspended. This is known as ‘compounding’. Compoundable offences are situations where a settlement would be acceptable. Hurt, wrongful restraint, assault, molestation, fraud, adultery, and other similar crimes are compoundable offences.

Difference between compoundable and non-compoundable offences

Point of difference	Compoundable offences	Non-compoundable offences
Provisions	Compoundable offences are mentioned in the CrPC under Section 320.	All the offences except those mentioned under Section 320 of the CrPC are non-compoundable.
Nature of offence	Compoundable offences are less serious.	Non-compoundable offences are more serious.
Parties affected by the offence	In most cases, the compoundable offences affect an individual.	When a non-compoundable offence is committed, the private party, as well as society, gets affected.
Who can file a case	Generally, cases are filed by an individual or affected party.	Non-compoundable cases can be filed by the State.
Compoundability of offences	Compoundable offences as the name suggests can be compounded. They are of two types: Compoundable without the court’s consent (offences mentioned in Section 320(1) of the CrPC). Compoundable with the consent of the court (offences that are mentioned in Section 320(2) of the CrPC).	Non-compoundable offences cannot be compounded. Even the courts do not have any power to allow for the settlement of such offences.
Withdrawal of charges	If the aggrieved party allows, charges imposed on the accused can be withdrawn.	Charges imposed on the accused cannot be withdrawn.
Process of acquittal	Accused who have committed compoundable offences can be acquitted on reaching a settlement and there is no need for further trial.	In the case of non-compoundable offences, a full trial is needed, which will acquit or convict the accused based on the evidence.
Reason for the classification	The reasoning behind compoundable offences is that these offences are not very severe, therefore, leniency can be provided to the accused.	The rationale for this is that the gravity of the act is so heinous and unlawful that the accused cannot be let off without any punishment.

Nature of crimes that can be termed compoundable

To come under the purview of compoundable offences, the nature of the offences should be:

The nature of the crime must not be too severe in a compoundable offence.
The offences should generally be private. Private offences are those that have a negative impact on an individual’s competence or identity. Such offences should not cause any harm to the general public and should not be against the well-being of the state.

Offences such as rape, murder, and dacoity are heinous in nature and thus cannot be compounded.

List of Compoundable offences

Section 320 of the CrPC mentions two types of offences that can be compromised at the discretion of the victim. For the first type of offence, the consent of the court is not necessary before compounding the offence. Whereas in the second type of offence, the consent of the court is essential before compounding any offence.

Offences that do not need permission from the court

Section 320(1) contains a table that mentions the first type of offences that do not request consent or permission from the court. Such offences are as follows:

Section of IPC	Name of the offence	Who can compound the offence
Section 298 IPC	Uttering any word or making any gesture with the intention of wounding his religious feelings.	People whose religious sentiments have been wounded.
Section 323, 334 IPC	Voluntarily causing hurt.	The one to whom hurt has been caused.
Section 341, 342 IPC	Wrongfully restraining or confining any person.	The person who has been restrained or confined.
Section 352, 355, 358 IPC	Assault or use of criminal force.	The one who has been assaulted.
Section 426, 427 IPC	Mischief is when the only loss or damage caused is loss or damage to a private person.	Private person to whom damage has been made.
Section 447 IPC	Criminal trespass.	Possessor of the trespassed property.
Section 448 IPC	House-trespass.	Possessor of the trespassed property.
Section 497 IPC	Adultery.	Husband the woman.

Offences that require permission from the court

Section 320(2) also contains a table that refers to the second category of offences that necessitate the court’s consent before the parties can compromise. They are as follows:

Section of IPC	Name of the offence	Who can compound the offence
Section 325, 335, 337, 338 IPC)	Voluntarily causing grievous hurt.	To whom hurt has been caused.
Section 312 IPC	Causing miscarriage.	The woman to whom miscarriage has been caused.
Section 406, 408 IPC	Criminal breach of trust.	The owner of the property on which a breach of trust has occurred.
Section 494 IPC	Marrying again during the lifetime of a husband or wife.	The husband or the wife who is marrying.
Section 418 IPC	Cheating with knowledge that wrongful loss may ensue to a person whose interest offender is bound to protect.	The person who has been cheated.
Section 420 IPC	Cheating and dishonestly inducing delivery of property.	The person who has been cheated.

Effect of compounding of offences

According to Section 320(8) of the CrPC, the compounding of an offence under Section 320 of the CrPC has the effect of acquitting the accused with whom the offence was compounded.

The result of compounding an offence is essentially the dismissal of the accusations made against the accused. It makes no difference whether the FIR was lodged or whether the trial had begun; as long as the offence was compounded with the court’s authorization, the offender is acquitted of all accusations.

Legal provisions that deal with compoundable offences

Compoundable offences under Criminal Law

Section 320 of the CrPC talks about compoundable offences. This Section defines a series of Indian Penal Code (IPC),1860 crimes that can be compromised by the survivors of such crimes. A settlement reached by both parties in a matter is referred to as the ‘compounding of an offence’. As a result, certain IPC offences explicitly listed in Section 320 of the CrPC can be compounded by both parties.

The High Court under Section 401 of the CrPC or a court of session under Section 399 of the CrPC acting in the performance of its revising power may permit any individual to settle any crime which he or she is eligible to compromise under Section 320 of the CrPC.

Whenever an act is compoundable under Section 320 of the CrPC, then the abetment of this kind of activity or even an attempt to commit such an act (if such an attempt in itself constitutes a crime), or when the charged person is liable under Sections 34 or 149 of the Indian Penal Code, then it will also be compounded in the same way.

Compoundable offences under various laws

Legal Services Authorities Act, 1987

Section 19 (5) of the Legal Services Authorities Act, 1987 states that the Lok Adalat has the authority to consider and reach a compromise or settlement between both the parties to the conflict over any subject related to a crime compoundable under any legislation.

Foreign Exchange Management Act (FEMA), 1999

A breach of the Foreign Exchange Management Act, 1999 is defined as a breach of the Act’s rules, laws, orders, notices, or directives. Compounding such violations involves voluntarily admitting to the violation, pleading guilty to it, and requesting restitution. The Reserve Bank of India (RBI) has the authority to compound any violation listed in Section 13 of the FEMA Act.

Companies Act, 2013

When a crime was committed under the Companies Act, 2013, or a rule is infringed, or a failure or delay occurs, the directors may request to have the offence compounded rather than allowing the beginning of procedures if the crime is compoundable. Section 441 of the Companies Act, 2013 addresses the compounding of offences. Section 441(1) states that an offence punished merely by a fine shall be compoundable.

Decriminalization of compoundable offences

Decriminalization, according to the Cambridge dictionary, is the process of modifying legislation such that the act will no longer be considered illegal.

Compounding offences also work on the principle of decriminalization as it dissolves the charges against the accused. The complainant may have obtained compensation from the wrongdoer, or the parties’ opinions toward one another may have completely altered. The complainant is willing to forgive the offender’s objectionable conduct after he has been dismayed and repented. Criminal law must be amended to recognize such instances and to provide a mechanism for the termination of criminal proceedings for specific types of crimes. That is the reasoning behind the compounding of offences. The sufferer may have obtained reimbursement from the perpetrator, or the attitudes between the parties regarding one another may have permanently altered.

Which crimes should or should not be considered compoundable is always a question for legislators. The subject has been examined from several angles, the advantages and disadvantages have been assessed, and a sensible decision has been made. In general, offences affecting the security of the state or having a major effect on the community are not authorized to be compromised. Furthermore, serious offences are not the subject of compounding.

Once the offence is compounded, the offender gets acquitted, and the court no longer has jurisdiction over the matter.

Decriminalization of compoundable offences under Companies Act, 2013

During the COVID-19 pandemic, companies were facing several challenges in meeting regulatory, administrative, and technological obligations mandated by the Companies Act, 2013. Therefore, the government of India has declared that some offences that are compoundable in nature will be decriminalised in order to lessen the load of compliance on corporations under different articles of the Act during the emergence of the COVID-19 Pandemic.

The Review Committee

The Ministry of Corporate Affairs has formed a review committee, chaired by Mr. Injeti Srinivas, to evaluate the offences specified in the Act and to evaluate, study, and consider the necessity to decriminalise some of the offences.The Committee’s key recommendations with regard to compoundable offences are as follows:

Reclassified 16 out of 81 compoundable offences to an in-house adjudication structure.
Creating a fair and technology-driven in-house adjudication process.
Limiting physical interaction by executing online hearings and publishing orders on the Internet.
A concurrent order for making good the failure at the moment of imposing the new penalty is required to achieve the goal of improved compliance.
Decongesting the National Company Law Tribunal (NCLT) by broadening the authority of Regional Directors (RD) by increasing the monetary limitations under Section 441 of the Act within which they can compound offences.

In light of the Committee’s suggestions to examine offences, 16 offences were reclassified as civil mistakes in the Companies (Amendment) Act, 2019. The In-House Adjudication Mechanism (IAM) under Section 454 of the Act was one of the primary revisions made by the Companies (Amendment) Act, 2019, to reform the process by which compoundable offences are treated.

IAM assists with the Ministry of Corporate Affairs online website, which serves as a substitute for appeal and adjudication before the NCLT. The establishment of the IAM framework intends to unclog judicial bodies such as the NCLT by decreasing the cost of arbitration for trivial and technological compliances.

Case laws dealing with compoundable offences

Mahalovya Gauba v. the State of Punjab and Another (2021)

In the case of Mahalovya Gauba v. State of Punjab and Another, the Court held that criminal proceedings containing compoundable offences are classified into two parts:

Settlement of criminal crimes without the court’s consent under Section 320(1) of the CrPC, and,
Settlement of criminal proceedings with the court’s approval under Section 320(2) of the CrPC: The Lok Adalat will have the authority to hear compoundable criminal proceedings of both subgroups, compoundable without the court’s consent under Section 320(1) of the CrPC and compoundable with the court’s consent under Section 320(2) of the CrPC.

Section 320(1) of the CrPC doesn’t expressly state that compounding can be accomplished only after submitting a case file under Section 173 (2) of the CrPC and not before the submission of a case file. However, the phrase “with the consent of the court before which any trial for this kind of offence is currently undergoing” in Section 320(2) of the CrPC appears to indicate the very same. The concern would be whether, in compoundable criminal matters, the crimes implicated can be compounded before the submission of a case file under Section 173 (2) of the CrPC during the investigative stage.

Surendra Nath Mohanty v. the State of Orissa (1999)

In the case of Surendra Nath Mohanty v. the State of Orissa, a three-judge bench of the Supreme Court said that “a full mechanism is available under Section 320 of the CrPC, 1973 for the compounding of the charges mentioned under the IPC.” Section 320(1) states that the crimes listed in the table given in Section 320 can be settled by the people listed in the third column of the list. Furthermore, Section 320(2) states that the crimes specified in the list may be settled by the complainant with the court’s consent. In contrast, Section 320(9) expressly states that “no action shall be settled unless as permitted by Section 320 of the CrPC.” According to the aforementioned statutory mandate, only the acts listed in tables 1 and 2 as specified above can be compounded, whereas any other offences punishable under the IPC cannot be settled.

Biswabahan Das v. Gopen Chandra Hazarika & Ors (1967)

In Biswabahan Das v. Gopen Chandra Hazarika & Ors., the three-judge bench led by G. K. Mitter held that if the crime is of such a kind that it affects the complainant in their personal capacity, then the appropriate redressal for such a crime may be compounded.

Conclusion

The concept of compounding offences has gone a long way. Nowadays, it is regarded as an acceptable method of concluding a legal proceeding. In all crimes that the law considers compoundable, the litigants can peacefully resolve their differences between themselves.

Offences committed against any person which are not so severe can generally be classified as compoundable offences, which means that they can be settled amicably without requiring authorization. Compounding of offences must be permitted for crimes that are not overly terrible and do not risk the public sphere or community.

Frequently Asked Questions (FAQs)

In which Court a victim can file a request for the compounding of an offence?

Parties who are willing to compound must make the request for settlement in the same court where the matter was tried in the first instance. Compounding may also be granted during an appeal or review proceeding in the High Court or Supreme Court.

Can the court overturn the decision of compounding?

If the courts permit any settlement between the parties and subsequently discover that it was founded on faulty grounds, then the courts have the authority to reverse the judgment.

When is permission from the court needed for the compounding of offences?

Some acts, like trespassing, adultery, slander, etc., need not seek the approval of the court to be compounded. Whereas, offences of a much more grave character, such as robbery, assault, and criminal breach of trust, must be handled with the court’s authorization.

What would be the result of compounding?

In compounding, the accused is deemed acquitted similarly as if he had been acquitted of charges in the proceeding by the court.

Who, according to CrPC, has the authority to compound the offence?

Compounding can be done by the victim of an offence, according to Section 320. Compounding is also permitted with the consent of the court by the parents and legal representative of the accused child, deceased complaint, or disabled person.

What would happen if there was more than one accused?

When there are several offenders, compounding with any one of them will result in the acquittal of only that particular offender.

References

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