IMPORTANT POINT
Dishonour of cheques – After settlement between parties continuation of proceedings under N.I. Act would be abuse of process of Court.

JUDGMENT

The present petitions are filed under Section 482 of the Code of Criminal Procedure, 1973 (CrPC) seeking setting aside of common order dated 21.02.2019 (hereafter ‘impugned order’), passed by the learned Trial Court in Complaint Case Nos. 617263/2016 and 617264/2016 respectively.

Brief Facts

2. The learned Trial Court, by the impugned order, had directed the trial to proceed on merits. The petitioner is essentially aggrieved by the continuation of proceedings under the Negotiable Instruments Act, 1881 (‘NI Act’), since, according to the petitioner, the parties had settled their disputes before the Mediation Centre and the petitioner, pursuant to the settlement, had also paid the agreed amount to the Respondent No.2/complainant.

3. Respondent No.2 filed the Complaint Case Nos.617263/2016 and 617264/2016 on 08.05.2015 against the petitioner and certain other accused persons, under Sections 138/141/142 of NI Act.

4. The Complaint Case No. 617263/2016 was filed with respect to cheque bearing No. 381857 dated 05.02.2015 for an amount of Rs.20,00,000/- and cheque bearing No. 335813 dated 05.01.2015 for an amount of Rs.30,00,000. The cheques got dishonoured 07.03.2015.

5. The Complaint Case No. 617264/2016 was filed with respect to cheque bearing No. 215590 dated 11.03.2015 for an amount of Rs.30,00,000/- and cheque bearing No. 915887 dated 11.03.2015 for an amount of Rs.45,000. The cheques got dishonoured on 11.03.2015.

6. The complaints were filed by Respondent No. 2 alleging that the company namely M/s Kassa Finvest Pvt. Ltd. (hereafter ‘the company’) in which the petitioner holds 5% shares, had represented a rosy picture by portraying that they were in the business of trading in security market and persuaded Respondent No. 2 to invest certain amounts. The transactions were done between the parties and the cheques for a sum of Rs.50,00,000/- and Rs.30,45,000/- were paid by the company in discharge of the liability. On the dishonour of the cheques, the above referred complaints were filed by Respondent No.2.

7. On 05.03.2016, the matter was referred to Meditation Centre, Saket Courts, on a joint request of the parties, that is, the petitioner and Respondent No. 2. From 05.03.2016 till 27.08.2018, the matters were listed before the learned Trial Court on more than ten occasions, but the matters were kept pending since the settlement proceedings were ongoing between the parties.

8. In the meanwhile, the parties entered into a settlement agreement which included a condition wherein the petitioner was under obligation to “not do any act which may affect the rights..” of the Respondent No. 2 in obtaining certain sums from the Investor Protection Fund (IPF) and the due amounts with respect to the settlement agreement were fully paid on 16.05.2016 by the petitioner. Thereafter, the matter was kept pending for certain compliances before the learned Trial Court, which concluded on 17.05.2018.

9. On 01.04.2016, Respondent No. 2 and certain other parties including M/s Kassa Finvest Pvt. Ltd. signed the settlement agreement and M/s Kassa Finvest Pvt. Ltd. made an advance payment for a sum of Rs. 30,00,000/- to Respondent No. 2 against the entire outstanding of Rs.1,00,00,000/-. The said payment was made way of four cheques bearing nos. 201693, 201694, 922810 and 922811 dated 04.04.2016. 04.04.2016, 16.05.2016 and 16.05.2016 respectively for a cumulative sum of Rs.20,00,000/- along with Rs.10,00,000/- in cash.

10. In terms of the settlement agreement dated 01.04.2016, on the receipt of Rs.30,00,000/- by Respondent No. 2, the Respondent No. 2 was to withdraw all the complaints under the NI Act against the petitioner and all related parties /entities.

11. Respondent No. 2 appeared before the Mediator at Delhi Mediation Centre, Saket Court, Delhi on 16.05.2016 in view of the settlement agreement and stated that the matter is amicably settled and does not want to pursue the same any more. He further stated that he has agreed to withdraw bo