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IN THE HIGH COURT OF DELHI AT NEW DELHI
SANJEEV NARULA
Professional Technical Services – Appellant
Versus
Pavitra Milk Products Pvt. Ltd. – Respondent
| Table of Content |
|---|
| 1. jurisdiction invoked for section 138 complaint. (Para 3 , 4 , 5 , 6 , 7 , 8) |
| 2. arguments on validity of settlement agreement. (Para 9 , 10 , 11 , 12 , 13) |
| 3. court's analysis on enforceability of mediated settlement. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26) |
| 4. final order and proceedings direction. (Para 27 , 28) |
JUDGMENT :
SANJEEV NARULA, J.
CRL. M.A. 34565/2024 (on behalf of Petitioner seeking permission to file amended petition)
1. For the grounds and reasons stated in the application, the same is allowed and the amended petition is taken on record.
2. Disposed of.
CRL. M.C. 1105/2019
3. The Petitioner, who is the Complainant in CIS Case No.4991781/2016, under Section 138 of the Negotiable Instruments Act, 1881 [“the NI Act”] has invoked the jurisdiction of this Court under Section 482 of the Code of Criminal Procedure, 1973 [“Cr.P.C”] (now Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023) and Article 227 of the Constitution of India, 1950 assailing order dated 3rd November, 2017 [“the impugned order”] passed by the Metropolitan Magistrate [“the Magistrate”] NI Act-02, South West, Dwarka. The impugned order observed that the Sett
Mediated settlements in criminal cases must receive judicial endorsement to be enforceable; otherwise, they remain private agreements with no legal effect. Breaches do not invalidate the original agr....
The main legal point established in the judgment is that a mediation settlement can be enforced by the court, and the court has the power to attach properties to recover the amount agreed to be paid.
Dishonour of cheques – After settlement between parties continuation of proceedings under N.I. Act would be abuse of process of Court.
Point of Law : Offences by companies - Cheque dishonoured - Mediation settlement - It is settled law and even otherwise settlement of Mediation Cell is deemed to be a decree and cannot be challenged.
A civil settlement does not discharge criminal liability under Section 138 unless the settlement terms are fulfilled; prosecution may continue if conditions remain unmet.
Court affirmed the settlement between parties post-conviction under Section 138 and set aside earlier judgments, following mediation.
(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 ....
Contempt proceedings may not be appropriate for breach of settlement; recovery can be sought under Sections 421 and 431 of Cr.P.C.
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