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Once Parties reach a Lawful Compromise, the Investigating Officer may prepare a Cancellation Report rather than proceeding with a Formal Trial --- Lahore High Court, Lahore

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Once Parties reach a Lawful Compromise, the Investigating Officer may prepare a Cancellation Report rather than proceeding with a Formal Trial --- Lahore High Court, Lahore

Islamabad 24-03-2025: The Lahore High Court, Multan Bench, has ruled on the compounding of offenses under Section 345 of the Code of Criminal Procedure (Cr.P.C) in a case concerning a dishonored cheque under Section 489-F of the Pakistan Penal Code (PPC). The judgment, delivered by Hon’ble Mr. Justice Anwaarul Haq Pannun in [Crl.Misc.No.8745-B of 2022], establishes procedural clarity regarding the cancellation of FIRs upon a lawful compromise between the complainant and the accused.

The Petitioner sought pre-arrest bail in a case registered under FIR No. 848 dated November 15, 2022, at Police Station Saddar, District Vehari. The allegations stated that he issued a cheque worth Rs. 245,000 from his account at FINCA Micro Finance Bank Ltd., which was dishonored upon presentation. The complainant, however, informed the Court that the financial obligation had been settled, and he had no objection to the acceptance of the bail petition or the cancellation of the case.

Mr. Justice Anwaarul Haq Pannun extensively analyzed Section 345 Cr.P.C, which governs the compounding of offenses. He noted that the law categorizes offenses into two groups: those compoundable without Court permission and those requiring judicial approval. Section 489-F PPC, concerning dishonored cheques, falls within the former category, permitting settlement without Court intervention.

The ruling emphasized that once parties reach a lawful compromise, the investigating officer may prepare a cancellation report rather than proceeding with a formal trial. The Magistrate, before whom such a report is placed, is authorized to verify the authenticity of the compromise before ordering the FIR’s cancellation. The Court referenced Tariq Mehmood Vs. Naseer Ahmed (PLD 2016 SC 347) and Salman Khalid Vs. The State (PLD 2020 Lahore 97) to reaffirm that a compromise in such cases necessitates termination of proceedings against the accused.

In light of the compromise, the Court granted the Petitioner’s bail, confirming the ad-interim bail already issued. The Court also directed that copies of this judgment be circulated to all Sessions Judges, the Inspector General of Police Punjab, and the Prosecutor General Punjab for guidance and implementation.