Cheque dishonour cases in Bangladesh are frequently resolved through compromise — the drawer pays the cheque amount (plus interest and costs) and the complainant withdraws the case. A well-structured compromise protects both parties' interests and avoids the time and expense of a full trial. TRW — Tahmidur Rahman Remura Wahid Law Associates advises both complainants and accused persons on compromise negotiations and drafts comprehensive compromise agreements.
Why Compromise Is Common in Cheque Dishonour Cases
Cheque dishonour cases are particularly amenable to compromise because: the underlying dispute is financial in nature; the complainant's primary goal is to recover the money; the accused faces criminal liability (imprisonment and/or fine) if convicted; and the court encourages settlement at every stage of the proceedings. A compromise that results in full payment of the cheque amount, interest, and costs is generally in both parties' interests.
TRW advises complainants on the appropriate amount to accept in settlement (cheque amount plus interest at the bank rate plus legal costs) and advises accused persons on the consequences of not settling (criminal conviction, imprisonment, and a fine of up to three times the cheque amount).
The Compromise Process
The compromise process in a cheque dishonour case involves the following steps. TRW negotiates the settlement terms between the parties. The parties reach agreement on the amount to be paid and the timeline for payment. TRW drafts a compromise agreement setting out the terms of settlement. The complainant files a compromise petition before the Magistrate, informing the court of the settlement and requesting withdrawal of the complaint. The Magistrate accepts the compromise and discharges the accused. The accused pays the agreed amount to the complainant.
TRW ensures that the compromise agreement is comprehensive and legally binding, and that the payment is received before the complaint is withdrawn. TRW also advises on the tax implications of any settlement amount.
How Barrister Tahmidur Rahman Can Help
Barrister Tahmidur Rahman and TRW's cheque dishonour team handle compromise negotiations and draft compromise agreements. Contact TRW at https://tahmidurrahman.com/contact/.
Frequently Asked Questions
Q: Can a cheque dishonour case be settled after conviction?
A: Yes. A compromise can be reached at any stage, including after conviction, pending appeal.
Q: Does the court have to approve the compromise?
A: Yes. The Magistrate must approve the compromise and discharge the accused.
Q: What if the accused pays part of the amount but not all?
A: TRW advises on whether a partial settlement is acceptable and ensures that the compromise agreement is conditional on full payment.
