Authority: Supreme Court (Special Lok Adalat)
Order Date: 21‑08‑2026
Case Overview
- Petition No. 14527‑14528/2024 filed by Messers Divyanshu Electronics against Messers Asia Tradelink, arising from Himachal Pradesh High Court judgment dated 18‑07‑2024 that reversed an acquittal and convicted the petitioner under Section 138 of the Negotiable Instruments Act.
- Parties reached a settlement wherein the petitioner paid a total of Rs 5 lakh to the respondent; Rs 1 lakh earlier and Rs 4 lakh via Demand Draft No. 001406 dated 09‑Oct‑2024 drawn on HDFC Bank, Baijnath, digitally signed by Chetan Arora.
- The petitioner sought to have the petition allowed based on the settlement, with the respondent agreeing to compound the offence and no further payment required.
Final Outcome
- The Court, invoking Section 147 of the NI Act and precedents (Damodar S. Prabhu v. Sayed Babalal H, Raj Reddy Kallem v. State of Haryana, B. V. Seshaiah v. State of Telangana, Gian Chand Garg v. Harpal Singh), ordered that the offence under Section 138 be compounded with the parties’ consent.
- The conviction was set aside, and the settlement of Rs 5 lakh was incorporated as part of the award.
Topics: Legal Settlement, Cheque Bounce Compounding