Explanation:

Here’s how it shakes out:

- Compoundable (Option 1)

If an offence is compoundable, both parties can settle the matter between themselves—even after the case has started. Courts allow it.

This is true for offences under the Negotiable Instruments Act (like cheque bouncing).

- Non-compoundable (Option 2)

If the offence were non-compoundable, parties *couldn’t* settle privately—even if they wanted to. That’s not the case here.

- Non-compoundable and non-bailable (Option 3)

Here’s a double negative: You can’t settle, plus you don’t automatically get bail. This does *not* apply to NI Act offences.

- Bailable (Option 4)

Bailable means you have the right to bail. While most NI Act offences are bailable, that’s not what the question is asking about; it’s about settlement.