Yes — and this is one of the most straightforward and well-understood closures in criminal law, and the process is entirely standard in Vadodara's Magistrate and CJM courts. Once payment has been made and the complainant accepts it in full satisfaction, the parties jointly move a compounding application under Section 147 of the Negotiable Instruments Act, and the court records the settlement and passes a compounding order resulting in the accused's acquittal and the closure of the case.

This can happen at any stage of the proceedings — before the Vadodara Magistrate or CJM during trial, at the Vadodara Sessions Court in appeal, or even before the Gujarat High Court in revision. There is no stage at which a genuine settlement cannot be formally recorded. The Supreme Court has made clear that the primary purpose of Section 138 is to compensate the complainant and maintain the credibility of cheque transactions, not punishment for its own sake. Once the complainant has received what they are owed, allowing the prosecution to continue serves no purpose, and courts at all levels in Gujarat approve compounding applications readily.

The practical point I stress to every client in Vadodara: do not treat an informal payment as a closed matter. Until the court passes the compounding order, the prosecution is technically alive — a complainant who has been paid but has not filed the compounding application can, at least in theory, allow the case to continue. The correct sequence is: agree the settlement and document it in writing; attend the Vadodara court together through counsel; file the joint compounding application; obtain the court's compounding order before leaving. That order is your formal closure. A cheque bounce advocate at the Vadodara panel of Aapka Legal Advice can prepare the application and ensure the closure is complete in a single well-organised court appearance.