The petitioner, Debesh Goswami, had been convicted under Section 138 of the Negotiable Instruments Act, 1881 for cheque dishonour and sentenced to two months' simple imprisonment along with a compensation of Rs. 5,00,000/-, a conviction affirmed by the Additional Sessions Judge and a subsequent Criminal Revision Petition dismissed by the High Court. During the pendency of this fresh criminal petition under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, the petitioner and the complainant (Respondent No. 2) filed a joint affidavit confirming a settlement agreement dated 16.06.2026, under which a total of Rs. 4,50,000/- (in addition to Rs. 1,50,000/- already paid) was paid in full and final settlement. The Gauhati High Court, relying on Section 147 of the Negotiable Instruments Act, 1881 and Supreme Court precedents including 'Gian Chand Garg v. Harpal Singh' (2025 SCC OnLine SC 2317) and 'K.M. Ibrahim v. K.P. Mohammed' (2010 (1) SCC 798), held that an offence under Section 138 of the NI Act can be compounded at any stage, even after all proceedings have concluded. The Court allowed the compounding, set aside the conviction and sentence, and quashed the non-bailable warrant against the petitioner.