Authority: Supreme Court Special Lok Adalat
Order Date: 23-08-2026
Case Overview
- Parties: M/s. Gupta Engineers and Contractors (through partner Rakesh Agrawal) as petitioner; M/s. Panchsheel Infratech Pvt. Ltd. as respondent.
- Origin: Appeal against final judgment and order dated 23-02-2026 of the High Court at Allahabad (MUA227 No. 13910/2025) concerning alleged dishonour of cheque under Section 138 of the Negotiable Instruments Act, 1881.
- The Trial Court had directed interim compensation of Rs 1,27,85,159, which was deposited with the Registry of the Supreme Court Special Lok Adalat.
- Settlement terms: Petitioner to pay a total sum of Rs 1,90,00,000 to the respondent as full and final settlement of the claims.
- Payment structure:
- The amount of Rs 1,27,85,159 (interim compensation) is to be released by the Registry to the respondent, together with accrued interest, within two weeks of the award. The respondent must furnish bank account details within three days for the transfer.
- The remaining balance of Rs 62,14,841 is to be paid by the petitioner through two post‑dated cheques already issued in favour of the respondent, which the respondent acknowledges and will present for encashment in due course.
- Upon release of the interim amount and receipt of the cheques, the pending Section 138 Negotiable Instruments Act proceedings before the Trial Court shall be closed. The Registry will communicate the closure to the Trial Court for formal orders.
Final Outcome
- The Special Lok Adalat award directs the release of Rs 1,27,85,159 plus interest to M/s. Panchsheel Infratech Pvt. Ltd., the payment of the balance Rs 62,14,841 via the two post‑dated cheques, and the closure of all pending Section 138 proceedings. The Special Leave Petition stands disposed of.
Topics: Settlement, Negotiable Instruments Act, Court Order