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(2026) Law Today Live Doc. Id. 21390
Decided on: 18.05.2026
For Petitioner(s):
Dr. G. Sivabalamurugan, AOR, Mr. Selvaraj Mahendran, Adv. Mr. Kavin Ananth C, Adv., Mr. C. Aadhikesavan, Adv. Mr. Harikrishnan Pv, Adv. Ms. Vibha Srivastava, Adv. Mrs. A. Asoka Devi, Adv.
For Respondent(s):
Mr. P. S. Sudheer, AOR, Mr. Rishi Maheshwari, Adv. Ms. Anne Mathew, Adv., Mr. Bharat Sood, Adv., Mr. Jashan Vir Singh, Adv. Ms. Nivedita Sudheer, Adv.
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Dishonour of cheque -- Settlement -- Entire settlement amount received by complainant -- Conviction and sentence set aside and appellant acquitted.
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Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- Dishonour of cheque -- Compounding after conviction -- Settlement -- Parties having compromised and compounded the offence during pendency of Special Leave Petition -- Respondent-complainant having received entire settlement amount and agreed to cooperate for setting aside conviction -- In view of settlement, impugned order, conviction and sentence set aside -- Appellant acquitted of charge under Section 138 -- Appeal allowed.
(Paras 2 to 7)
ORDER
1. Leave granted.
2. The parties have compromised and compounded the offence during the pendency of the Special Leave Petition.
3. The respondent-complainant has received the entire amount in terms of the settlement agreement recorded before the Mediation and Conciliation Centre of High Court of Judicature at Madras on 24.04.2026, in the following terms :-
“1. The Parties of the First Part agree to pay a total sum of Rs.70,00,000/- (Rupees Seventy Lakhs only) to the Party of the Second Part towards full and final settlement of all claims arising out of the subject transactions.
2. The above said amount has been paid by the Parties of the First Part to the Party of the Second Part by way of two RTGS and one Demand Draft as follows:
1. RTGS Transaction No. UTR: CIU BH26111405540 dated 21.04.2026 for a sum of Rs. 35,00,000 (Rupees Thirty Five Lakhs Only)
2. RTGS Transaction No. UTR: CIU BH26111405358 dated 21.04.2026 for a sum of Rs. 20,00,000 (Rupees Twenty Lakhs Only)
3. Demand Draft No. 070456 dated 24.04.2026 drawn on City Union Bank, Koilambakkam Branch for a sum of Rs. 15,00,000 (Rupees Fifteen Lakhs Only)
The Party of the Second Part hereby acknowledges receipt of the entire settlement amount, subject to realization of the Demand Draft.
This settlement is subject to the realisation of the demand draft and in case the amount is not credited to the account of the party of the second part for any reason whatsoever, the entire settlement is void ab initio and he is entitled to all remedies available in law.
3. The Party of the Second Part agrees:
To appear before the Hon’ble Supreme Court of India in the pending SLPs;
To give consent / no objection for compounding of the offence under Section 138 of the Negotiable Instruments Act;
To cooperate for setting aside the conviction recorded by the Courts below.
4. The Party of the Second Part agrees:
Not to initiate any further execution proceedings or any fresh proceedings based on the decrees passed in O.S. Nos.113/2016 and 114/2016;
That the decrees shall be treated as satisfied in view of this settlement.
5. That the Party of the Second Part shall apply for refund of the full court fees paid in the two suits viz. O.S. Nos.113/2016 and 114/2016 and the party of the FIRST PART has got no objection to the same.
6. No Further Claims Both parties hereby agree that:
This settlement is in full and final satisfaction of all claims;”
4. Learned counsel for the respondent submits that the respondent-complainant has received the entire amount as mentioned in the agreement.
5. In view of the above, the impugned order dated 10.06.2025 and conviction and sentence imposed upon the appellant is set aside and the appellant is acquitted of the charge under Section 138 of the Negotiable Instruments Act, 1881.
6. At this stage, learned counsel for the parties submit that Special Leave Petition (Criminal) No. 020575 of 2025 between the parties, is pending consideration and as per the terms of settlement, the subject matter involved in this Special Leave Petition, has also been settled.
7. Recording the above submission, the present appeal is allowed in the above terms.
8. Pending application(s), if any, shall stand disposed of.
Appeal allowed.
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