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CDJ 2026 SC 1595
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| Court : Supreme Court of India |
| Case No : Special Leave Petition (Crl.) No. 21281 of 2025 |
| Judges: THE HONOURABLE MR. JUSTICE J.B. PARDIWALA & THE HONOURABLE MR. JUSTICE K. VINOD CHANDRAN |
| Parties : Joginder Singh Chauhan Versus Ramesh Chauhan |
| Appearing Advocates : For the Petitioner: ----- For the Respondent: ----- |
| Date of Judgment : 07-10-2026 |
| Head Note :- |
Negotiable Instruments Act, 1881 - Section 138 -
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| Summary :- |
1. Statutes / Acts / Rules Mentioned:
- Section 138 of the Negotiable Instruments Act, 1881
2. Catch Words:
- Section 138, cheque bounce, settlement, quash, conviction, set aside
3. Summary:
The petitioner was convicted under Section 138 of the Negotiable Instruments Act for a dishonoured cheque of Rs. 12,60,000/‑ and was ordered to deposit Rs. 15,60,000/‑. The parties later reached a settlement whereby the deposited amount would be released to the respondent, and the respondent would not object to the quashing of the conviction by the Supreme Court. The Court, upon reviewing the settlement, directed the Registry to disburse the amount with interest to the respondent. Consequently, the Court set aside the impugned order, the orders of the First Appellate Court and the Trial Court, and the conviction of the petitioner. The petition was disposed of, and any pending applications were rejected.
4. Conclusion:
Petition Allowed |
| Judgment :- |
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The proceedings taken under Section 138 of the Negotiable Instruments Act, 1881 with respect to dishonor of cheque amounting to Rs.12,60,000/- ended in a conviction of the accused, who is the petitioner herein. This Court by order dated 05.12.2025 directed deposit of Rs.15,60,000/-.
2. We referred the parties to mediation and when the matter was posted today, we are told that the matter has been settled and parties have agreed to settle the issue on payment of Rs.15,60,000/- by the petitioner to the respondent. The settlement agreement is produced before this Court and the operative portion is extracted hereunder:
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7. Whereas it has mutually been decided between both the parties that the amount already deposited by the First Party an amount of Rs. 15,60,000/- in the SLP (CRL) No. 21281/2025, before the Hon'ble Supreme Court of India vide demand draft no. 082252 dated 09.12.2025, in the name of Registrar General, Supreme Court of India, the said amount alongwith the interest incurred till date shall be released in favour of Second party and in that eventuality First party shall have no objection. Further it has also been decided between both the parties that Second party shall have no objection if the judgment of conviction dated 11.09.2024 passed by Ld. CJM Shimla, in complaint CIS Registration No. 1193/2022 titled as Ramesh Chauhan v/s Joginder Singh Chauhan and affirmed by the Ld. Additional Sessions Judge (CBI Court) Shimla, in Criminal Appeal No. 96-S/10 of 2024 vide judgment dated 15.03.2025, and further affirmed by the Hon'ble High Court of HP in Criminal Revision Petition No. 209/2025 vide judgment dated 14.05.2025, will be quash and set aside by the Hon'ble Supreme Court of India.
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3. The said amount has been deposited in the Registry of this Court. We direct the Registry to disburse the amount together with any interest accrued to the respondent/complainant on proper verification.
4. In terms of the settlement, we set aside the impugned order and the orders of the First Appellate Court and the Trial Court. The conviction of the petitioner is set aside.
5. The petition shall stand disposed of on the above observations.
6. Pending application(s), if any, shall stand rejected.
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