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IN THE HIGH COURT OF DELHI AT NEW DELHI
NEENA BANSAL KRISHNA
Manohar Lal S/o Sh. Tillu Ram – Appellant
Versus
State (Govt. Of NCT of Delhi) – Respondent
JUDGMENT :
NEENA BANSAL KRISHNA, J.
1. Petition under Section 482 of the Code of Criminal Procedure, 1973 (hereinafter referred to as ‘Cr.P.C’) has been filed on behalf of the Petitioner, Manohar Lal, for quashing of the Order dated 17.03.2018 passed by the learned ASJ, who has declined to initiate the contempt proceedings against the Respondents, for breach of a Settlement dated 04.12.2015, in Complaint Case under Section 138 of the Negotiable Instrument Act, 1881 (for short ‘N.I. Act’).
2. It is submitted in the Petition that the Petitioner had filed the Complaint under Section 138 of the N.I. Act, in respect of 07 cheques for a total sum of Rs.41,00,000/- vide CC No. 142/2015. During the pendency of the case, with the intervention of common friends, the parties entered into a Memorandum of Understanding (MOU) dated 04.12.2015. As per the terms of the Settlement, the cheques amount were of total Rs.41,00,000/- but under the Settlement, the parties had agreed for payment of Rs.27,00,000/-. It was further agreed that in case of default, a penalty of Rs.20,00,000/- shall be paid. The parties i.e. the Petitioner and the Respondent gave statements in the Court on 07.12.2015, confirming t
Contempt proceedings may not be appropriate for breach of settlement; recovery can be sought under Sections 421 and 431 of Cr.P.C.
Dishonour of cheques – After settlement between parties continuation of proceedings under N.I. Act would be abuse of process of Court.
The main legal point established in the judgment is that the offence under Section 138 of the N.I. Act is primarily a civil wrong, and the principles related to compounding of the offence, consent of....
(1) Dishonour of cheque – Once a settlement agreement has been entered into by parties, proceedings in original complaint cannot be sustained and a fresh cause of action accrues to complainant under ....
The proceedings under the IBC and the proceedings under Section 138 of the NI Act are of different nature and purpose, and the criminal prosecution under Section 138 of the NI Act would not stand ter....
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