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Section 138 of the NI Act - Settlement via Mediation Several sources highlight that disputes under Section 138 of the Negotiable Instruments Act can be settled through mediation or conciliation processes. For instance, Source Ashok Kumar VS State - Crimes
Ashok Kumar VS State - Crimes
"], ["2025 0 Supreme(Del) 653"], ["2023 0 Supreme(All) 663"]Evidence and Marking of Mediation Agreements in Court The admissibility of mediation agreements executed before or during proceedings depends on the context. Source Ashok Kumar VS State - Crimes
Ashok Kumar VS State - Crimes
"], ["2025 0 Supreme(Del) 466"], ["2023 0 Supreme(Cal) 942"]Legal Procedure and Court Directions Courts often direct that cases under Section 138 be referred for mediation to expedite resolution, as seen in Source 2023 0 Supreme(Cal) 942 and Source 2023 0 Supreme(All) 663. These sources emphasize that courts can record settlement agreements and, upon proof of settlement, may dismiss or quash criminal proceedings. The courts also encourage parties to settle through mediation before proceeding with trial, and agreements reached can be marked as evidence.Reference: ["2023 0 Supreme(Cal) 942"], ["2023 0 Supreme(All) 663"]
Analysis and Conclusion:A mediation agreement executed in cases under Section 138 of the Negotiable Instruments Act is generally admissible in court and can be marked as evidence to support the resolution or to facilitate quashing of proceedings. Courts actively encourage settlement through mediation, and recorded agreements can be used as evidence to conclude or withdraw criminal proceedings. Therefore, such agreements, if properly documented and marked, are valid and can be relied upon in evidence to demonstrate dispute resolution under the NI Act.
In the fast-paced world of business transactions, under (NI Act) are commonplace. When disputes arise, parties often turn to mediation for a quicker, amicable resolution. But a pressing question remains: Whether Mediation Agreement can be Marked in Evidence during court proceedings? This blog delves into the admissibility of such agreements, drawing from judicial precedents and legal principles to provide clarity.
Section 138 NI Act addresses the dishonour of cheques due to insufficient funds, treating it as a criminal offence that's uniquely . Courts encourage (ADR) mechanisms like mediation to reduce backlog and promote settlements. A mediation agreement, if properly executed, can lead to and of the accused. However, its role as evidence is crucial when disputes persist or compliance is questioned. 2019 0 Supreme(Del) 1649 2018 0 Supreme(HP) 1591
Mediation in these cases is legally recognized, aligning with the legislative intent to favor out-of-court resolutions. The evidence from mediation, including the agreement, can typically be marked and considered by the court to uphold the settlement. 2007 0 Supreme(Del) 1469
The offence under Section 138 is under read with . Courts, including , can permit compounding at any stage, even in revision. The offence under Section 138 of the Negotiable Instruments Act is and the composition of an offence shall have the effect of of the accused with whom the offence has been compounded. 2023 Supreme(Online)(P&H) 8688
In one case, a settlement deed executed before the was marked as '' on record, leading to the petitioner's . This demonstrates that mediation agreements are routinely admitted as evidence. 2023 Supreme(Online)(P&H) 8688
precedents affirm that settlements via mediation are binding if documented and agreed upon by parties. Courts enforce them, emphasizing mediation's role in criminal cases like Section 138. 2019 0 Supreme(Del) 1649 2018 0 Supreme(HP) 1591
The can be done during the trial of the case as well as by the High Court or while acting in the exercise of its power of revision under . 2023 Supreme(Online)(P&H) 8688
When parties reach a settlement through mediation, the agreement is presented to the court. It can be marked as an exhibit, and upon verification, the court may compound the offence, resulting in . This process applies whether mediation occurs via court referral, , or other centers.
Even in breaches, the agreement serves as evidence for recovery under , akin to a fine. Proceedings for may also follow. 2017 0 Supreme(Del) 3508
Dayawati VS Yogesh Kumar Gosain
High Court Rulings on Post-Settlement: In a case, the was allowed after parties voluntarily settled, setting aside conviction and acquitting the accused based on the marked settlement deed. The court relied on and , citing judgments like . 2023 Supreme(Online)(P&H) 8688
and Mediation Efficacy: Settlements via or mediation have the same status as decrees. Mediated settlement and settlement before 'another Judge', would have the same efficacy and binding status as an award of the which is deemed to be a decree. 2017 0 Supreme(Del) 3508
No Bar on ADR in Criminal Cases: There's no prohibition on referring Section 138 cases to mediation. CrPC permits settlements without restricting the method, including mediation under principles.
Dayawati VS Yogesh Kumar Gosain
2017 0 Supreme(Del) 3508Breach Consequences: If breached, courts treat the settlement as enforceable. Upon breach of such order and non-payment of the agreed amounts, the same may be recoverable in terms of Section 431 read with Section 421 Cr.P.C.
Dayawati VS Yogesh Kumar Gosain
Other cases reinforce that courts uphold mediation outcomes, marking agreements as evidence without needing or quashing proceedings prematurely. 2024 0 Supreme(Guj) 1652 2020 0 Supreme(Raj) 572
To ensure a mediation agreement is admissible:
Ensure that any mediation agreement is comprehensive and clearly outlines the terms agreed upon by both parties. 2007 0 Supreme(Del) 1469
While generally admissible, challenges may arise if the agreement lacks voluntariness or is disputed. Courts exercise discretion, as seen in cases refusing quashing without evidence. 2023 0 Supreme(All) 2282 Also, jurisdiction matters—complaints are maintainable where the cheque is dishonoured.
Note that for is directory, allowing judicial discretion. 2021 0 Supreme(Del) 1247
A mediation agreement in Section 138 NI Act proceedings can indeed be marked as evidence, facilitating compounding and . Courts prioritize such settlements to achieve the Act's compensatory goals. Always document meticulously and seek court endorsement for robustness.
Key Takeaways:- Mediation is legal and encouraged for S.138 cases.- Agreements are binding and admissible as exhibits. 2019 0 Supreme(Del) 1649 2018 0 Supreme(HP) 1591- Leads to upon compounding. 2023 Supreme(Online)(P&H) 8688- Breaches allow recovery like fines.
This post provides general information based on precedents and is not legal advice. Consult a qualified lawyer for case-specific guidance.
References: 2019 0 Supreme(Del) 1649 2018 0 Supreme(HP) 1591 2007 0 Supreme(Del) 1469
2023 Supreme(Online)(P&H) 8688 2017 0 Supreme(Del) 3508
Dayawati VS Yogesh Kumar Gosain
#NIACT138, #MediationAgreement, #ChequeBounce
Section 138 of the NI Act, a settlement is reached in mediation? xxx … xxx … xxx Sections 138 and 147 of the NI Act i.e. to ensure an expeditious time bound remedy for recovery of the cheque amounts.
A settlement/agreement deed executed before the between the parties Mediation and Conciliation Centre of this Court is on record as Mark ‘B’. 7. ... The petitioner is acquitted of the charge under Section 138 of the Negotiable Instruments Act. ... The evidence was led and ultimately, he was held guilty and accordingly, convicted for the offence punishable under Section 1....
Section 138 of the Act. 4. ... Brief facts of the case are that the opposite party no.2 filed a complaint under section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the Act') against the applicant stating therein that the opposite party no.2 had agreed to sell certain property to the applicant and to the ... Before proceedings further, it is apposite to give reference of some ....
He has submitted that only acts of the Defendants which imminently endanger the Plaintiff’s right are required to be taken into consideration and are relevant in considering whether the pre institution mediation under Section 12A of the 2015 Act requires to be giving go by to. ... ACT , 2015 (“the 2015 Act”). ... He has submitted that the Plaintiff’s case is based on plain averments not supported by any ....
Keeping with the view of the Hon’ble Supreme Court in re-expeditious trial of the cases under Section 138 N.I. Act the present revision is disposed of by directing the learned Magistrate to refer this case for mediation to the Secretary of the respective District Legal Services Authority. ... period of time and as such the opposite party had to file the complaint under Section 138 of the NI Act. ... The p....
Section 138 of the Negotiable Instruments Act by the petitioner. This Crl.M.C is filed aggrieved by Annexure 2 order of the trial court, dismissing the application filed by the petitioner under Section 311 of Cr.P.C. ... It is contended that, denial of opportunity to confront the complainant and mark the court charge, militates against the fundamental rule of fair trial guaranteed to the accused.
The Mediation Report dated 16.05.2016 categorically indicates that Respondent No. 2 has amicably settled the two matters, that is, the complaints which were filed by Respondent No. 2 under Section 138 of the NI Act. ... 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. .....
Therefore, the ultimate relief, whether specific performance of the agreement or an alternative remedy in the form of damages, shall necessarily be determined based on the evidence adduced and the equitable considerations prevailing at the time of adjudication ... Act. ... The law provides adequate remedies in the form of compensatory damages, the grant of which will depend upon the nature and sufficiency of evidence led b....
The criminal complaint against the present respondents No.2 and 3 was under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to in short as ‘the N.I. Act’). ... The learned Sessions Judge noted that under Section 148 of the N.I. Act, the matter has to be proceeded as summary trial for the case filed under Section 138 of the N.I. Act and order could be passed afte....
Naresh), under Section 138 of N.I. Act, Police Station-Civil Line, District-Meerut pending in the Court of Additional Chief Judicial Magistrate 5th District-Meerut. 3. ... Applicant's counsel urged that this case may be referred for mediation so that the parties may have a chance to settle their dispute on their own terms through mediation. 4. ... It is further directed that in case mediation process betw....
Is the matter to be disposed of taking the very mediated settlement agreement to be evidence of compounding of the case and dispose of the case, or the same is to be kept pending, awaiting compliance thereof (for example, when the payments are spread over a long period of time, as is usually the case in such settlement agreements)? In the context of reference of the parties, in a case arising under Section 138 of the NI Act, to mediation is concerned, the following procedure is requi....
4. The trial court, after recording the evidence of the complainant under Section 200 Cr.P.C, took cognizance against the petitioner for the offence punishable under Section 138 of NI Act and after hearing the counsel for the petitioner, framed charge against the petitioner for the offence punishable under Section 138 of NI Act.
Impact of settlement of disputes in a complaint under Section 138 Negotiable Instruments Act by virtue of Lok Adalat under the Legal Services Authorities Act, 1987 (paras 78 to 80) XIII. Impact of settlement of disputes in a complaint under Section 138 Negotiable Instruments Act by virtue of Lok Adalat under the Legal Services Authorities Act, 1987 What is the procedure to be followed if in a complaint case under Section 138 of the NI Act, a settlement is reached in mediation?#HL_END....
Impact of settlement of disputes in a complaint under Section 138 Negotiable Instruments Act by virtue of Lok Adalat under the Legal Services Authorities Act, 1987 (paras 78 to 80) XIII. Breach of such settlement accepted by the court – consequences? What is the procedure to be followed if in a complaint case under Section 138 of the NI Act, a settlement is reached in mediation?
Auto mark Industries (India) Ltd. under Section 138 of Negotiable Instruments Act, 1881. 2. This criminal application is filed by the applicant/accused challenging jurisdiction of the learned Chief Judicial Magistrate, Yavatmal in entertaining complaint filed by the respondent/complainant Miss.
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