Section 77A IT Act: Compounding of offences

Section 77A IT Act allows a court of competent jurisdiction (a court legally empowered to try the case) to compound offences under the IT Act, meaning allow a pending criminal case to be settled with the court's permission. Because Section 77A IT Act uses the word "may", compounding is at the court's discretion and is not automatic. Offences punishable with imprisonment for life or imprisonment for a term exceeding 3 years cannot be compounded under Section 77A IT Act.

Two provisos set strict limits where the court cannot compound even an otherwise eligible offence. Under the first proviso, the court cannot compound an offence if a previous conviction makes the accused liable to an enhanced (increased) punishment or to a punishment of a different kind. Under the second proviso, the court cannot compound any offence that affects the socio economic conditions of the country, or an offence committed against a child below 18 years of age or against a woman.

Under Section 77A(2) IT Act, the accused person may file an application for compounding in the court where the offence is pending for trial. Sections 265B and 265C of the Code of Criminal Procedure, 1973 apply to that application. The Act still refers to the Code of Criminal Procedure, 1973, which the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) replaced from 1 July 2024. Sections 265B and 265C of the Code of Criminal Procedure, on the application for plea bargaining and a mutually satisfactory disposition, are now Sections 290 and 291 BNSS. Sections 265B and 265C of the Code of Criminal Procedure, on the application for plea bargaining and a mutually satisfactory disposition, are now Sections 290 and 291 BNSS. Sections 265B and 265C of the Code of Criminal Procedure, on the application for plea bargaining and a mutually satisfactory disposition, are now Sections 290 and 291 BNSS. Sections 265B and 265C of the Code of Criminal Procedure, on the application for plea bargaining and a mutually satisfactory disposition, are now Sections 290 and 291 BNSS.

While Section 77 IT Act deals with compensation, penalties, or confiscation alongside other punishment, Section 77B IT Act makes offences punishable with imprisonment of 3 years and above cognizable and offences punishable with imprisonment of 3 years bailable. Section 38 of Act 10 of 2009 substituted the present Sections 77, 77A and 77B IT Act for the original Section 77 IT Act with effect from 27 October 2009.