It is undoubtedly true that Section 147 of the Negotiable Instrument Act renders an offense under Section 138 of the same Act compoundable. However, to make an offense compoundable, the mode and manner of compounding such offenses must be followed. Statutory provisions for compounding offenses are outlined in Section 320 of the Code of Criminal Procedure (CrPC).

For offenses falling within a specific category, court permission is not required for compounding. In all cases, compounding can occur at the instance of the aggrieved person, injured party, or victims mentioned in the third column of the table in Section 320 CrPC. Sections 320(a) and 320(4)(a) also emphasize the principle that the person competent to compound must be represented in a manner recognized by the law.

The fundamental mode and manner of effecting the compounding of an offense under Section 320 CrPC cannot be considered irrelevant in the case of an offense under the Negotiable Instrument Act, given Section 147 of the same Act.

Regarding appeals or revisions:
The presentation of an appeal against an order of acquittal under Section 320 by the State Government lacks precedent. If the Magistrate's act in accepting a compromise is not illegal and falls within their sole discretion, such an appeal should not be entertained unless there is proof of gross misuse of discretion by the Magistrate ( Gourishankat AIR 1942, Pal 58, 59 ).

However, the right of appeal against an order granting sanctions for compounding an offense is conferred by subsection (8) of Section 320. The force of the words "shall have the effect of an acquittal" means that Section 378 and all other sections related to appeals automatically come into operation (Bipin AIR 1945, Bag 104). If an acquittal is based on the compounding of an offense, and the compounding is invalid under the law, the High Court can set aside the acquittal in exercise of its revisional jurisdiction (Ramesh Chandra AIR 1973 SC 84).