Yes — and this is one of the most straightforward closures in criminal law, entirely standard in Nashik's Magistrate and CJM courts. Once the cheque amount has been paid and the complainant accepts it in full satisfaction, the parties jointly move a compounding application under Section 147 of the NI Act, and the court records the settlement, passes a compounding order resulting in the accused's acquittal, and formally closes the case.

This can happen at any stage — before the Nashik Magistrate or CJM during trial, at the Nashik Sessions Court in appeal, or before the Bombay HC at Mumbai in revision. There is no stage at which a genuine settlement cannot be recorded and acted upon. The Supreme Court has confirmed that the primary purpose of Section 138 proceedings is to compensate the complainant and maintain the credibility of cheque transactions — once the complainant is paid, continuing the prosecution serves no purpose.

The practical point I stress to every Nashik client: do not treat an informal payment as a closed matter. Until the court passes the compounding order, the prosecution technically continues. The correct sequence is: agree the settlement terms and document them in writing; attend the Nashik court jointly through counsel; file the compounding application; obtain the court's compounding order before leaving. That order is your formal closure. A cheque bounce advocate at the Nashik panel of Aapka Legal Advice can prepare the application and ensure the closure is complete in a single well-organised court appearance.