{"id":326006,"date":"2024-07-08T11:00:49","date_gmt":"2024-07-08T05:30:49","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=326006"},"modified":"2024-07-10T16:58:43","modified_gmt":"2024-07-10T11:28:43","slug":"delhi-hc-imposes-50000-cost-complainant-pursuing-case-after-acceptance-settlement-money","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/07\/08\/delhi-hc-imposes-50000-cost-complainant-pursuing-case-after-acceptance-settlement-money\/","title":{"rendered":"\u2018Order u\/S 482 CrPC can be passed to prevent abuse of process\u2019: Delhi HC imposes Rs. 50,000 cost on complainant pursuing case even after acceptance of settlement money"},"content":{"rendered":"
\n

Delhi High Court:<\/span> In a petition under Section 482<\/a> of the Code of Criminal Procedure, 1973<\/a> (‘CrPC’) filed by the petitioner for assailing the order of the Trial Court that directed trial to commence despite parties having settled in mediation, Amit Mahajan, J.<\/span>, allowed the petition, while observing that in view of the settlement between parties allowing proceedings to continue would be an abuse of the process of law, and held that the Court under Section 482<\/a> of the CrPC<\/a> could exercise its right to curtail such abuse of the Court.<\/p>\n

Background<\/p>\n

Respondent 2 had filed a case under Sections 138<\/a>, 141<\/a> and 142<\/a> of the Negotiable Instruments Act, 1881<\/a> (‘NI Act’) against the petitioner and certain other petitioner persons, for the dishonour of cheques.<\/p>\n

The respondent filed a complaint alleging that a company in which the petitioner held 5% shares, had portrayed to the respondent that they were in the business of trading in security market and persuaded respondent 2 to invest certain amounts. Upon completion of transaction between the parties, cheques for a sum of Rs. 50,00,000\/- and Rs. 30,45,000\/-, were paid by the company in discharge of the liability. On the dishonour of the cheques, the above referred complaints were filed by respondent 2.<\/p>\n

It was alleged that on a joint request of parties, the matter was referred to the Mediation Centre, Saket Courts, from 05-03-2016 till 27-08-2018. Further, the matter was listed before the Trial Court on more than ten occasions but were kept pending since mediation between the parties were underway.<\/p>\n

The parties entered into a settlement agreement, which included a condition that said that the petitioner would be obligated to not engage in any act which would affect the rights of respondent in obtaining sums from the Investor Protection Fund (IPF) and the due amounts with respect to the settlement agreement, were fully paid on 16-05-2016 by the petitioner. The matter was kept pending before the Trial Court, which concluded on 17-05-2018.<\/p>\n

The settlement agreement was further signed by the other related parties and payment for a total sum of Rs. 20,00,000\/- along with Rs. 10,00,000\/- in cash, was paid to respondent 2, against the dishonoured cheques. In terms of the settlement agreement, respondent 2 was to withdraw all complaints under the NI Act, which were pending against the petitioner and related parties. Following the settlement, the respondent appeared before the Mediation Centre on 16-05-2016 and stated that the matter had been amicably settled and he did not wish to pursue the matter anymore, to which he would make a statement before the Trial Court.<\/p>\n

When the matter came up before the Trial Court, a joint request was made by parties seeking time to place on record the settlement deed. Thereafter, on when the matter came up for hearing, the Trial Court was informed by the respondent that settlement was still underway and that only a part of the settlement amount had been paid by the petitioner, and remaining amount was yet to be paid. The matter was put up for consideration of the settlement agreement, whereby both parties were heard, and the Trial Court passed the impugned order.<\/p>\n

In the impugned order, the Trial Court held that the matter was at the initial stages of framing of notice under Section 251<\/a> of the CrPC<\/a>, and directed that the trial should be proceeded with, to test the veracity of the settlement agreement.<\/p>\n

The contention of the petitioner was that the Trial Court had erred in proceeding with the trial of cases in view of the settlement agreement, the settlement amount paid by the petitioner and also the statement made by the respondent before the Mediation Centre that the case would be withdrawn.<\/p>\n

The respondent on the other hand contended that the impugned order did not warrant any interference as the Trial Court had only ordered the framing of notice as per Section 251<\/a> of the CrPC<\/a>. Respondent 2 further submitted that even though it is not disputed than a settlement amount to the tune of Rs. 30,00,000\/- had been received by him, the settlement agreement was only a draft, therefore, not binding before the Court.<\/p>\n

Decision and Analysis<\/p>\n

Upon hearing the parties, the Court noted that the Mediation Report categorically stated that respondent 2 had amicably settled the matters, agreed to withdraw the complaints and to make necessary statement before the Trial Court. Further, the proceedings showed that the statement was made on its own free will and without any force, pressure or coercion.<\/p>\n

The Court further noted that the argument by the respondent that the settlement agreement was a draft and thereby not binding, was an afterthought. The Court observed held that the contention that statement was not recorded before the Court was meritless as the recording before the Mediator that parties had settled the disputes was duly signed not only by the partis themselves, but also their respective counsels.<\/p>\n

The Court noted that once it is an admitted position that an agreement was signed by parties and the payment in terms of the settlement had already been paid by the petitioner, respondent 2 could not be allowed to wriggle away.<\/p>\n

The Court observed that it was apparent from the Trial Court and mediation records that the parties had settled their disputes back in 2016 and the respondent had also accepted money from petitioner, therefore, continuation of proceedings under the NI Act would be an abuse of the process of the Court.<\/p>\n

The Court said that the respondent after having accepted the money, was trying to reagitate the proceedings and had managed to keep the proceedings alive since 2016, contributing to the already heavy docket of the Courts to the detriment of other litigants.<\/p>\n

The Court observed that it was empowered to exercise is right under Section 482<\/a> of the CrPC<\/a> to look into the record and pass such order as necessary to prevent abuse of the process of the Court.<\/p>\n

In the given circumstances, the Court allowed the petition, quashed the criminal complaints and directed the respondent to pay Rs. 50,000\/- as cost to the petitioner within a period of four week.<\/p>\n

[Ashok Kumar v. State (NCT of Delhi), 2024 SCC OnLine Del 4477<\/a>, decided on 01-07-2024<\/span>]<\/p>\n\n

Advocates who appeared in this case :<\/p>\n

Advocates for the Petitioner: Adit S. Pujari, Shaurya Mittal, Pallavi Chatterjee, Advocates<\/p>\n

Advocates for the Respondents: Utkarsh, APP; Tanuj Khurana, Abhishek Rawat, Advocates<\/p>\n

Buy Code of Criminal Procedure, 1973  HERE<\/a><\/h3>\n

\"Code<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“The conduct of the litigants to keep the dispute alive for mala fide reasons has the tendency of keeping the docket of the Courts heavy to the detriment of other litigants whose cases have been pending for years together.”<\/p>\n","protected":false},"author":67011,"featured_media":314886,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[33115,2543,3740,30606,13021,3587,4571],"class_list":["post-326006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-abuse-of-process-of-court","tag-Delhi_High_Court","tag-mediation","tag-ni-act","tag-section-482-crpc","tag-settlement","tag-trial"],"yoast_head":"\n\u2018Order u\/S 482 CrPC can be passed prevent abuse of process\u2019: Delhi HC imposes Rs. 50,000 cost complainant pursuing case after acceptance settlement money| 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Gauba, J. allowed a petition for quashing of criminal proceedings pending against in light of the settlement between the parties. Disputes arose between the petitioner and his wife which led to FIRs being lodged against each other. 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Gauba, J. laid down guidelines for the criminal courts and mediation centers\u00a0to be followed while dealing with the criminal cases that are to be or which have been referred for mediation. The High Court was considering petitions under Section 482 CrPC concerning cases of serious nature, sought\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":205465,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/11\/19\/power-of-hc-under-section-482-crpc-to-prevent-abuse-of-process-not-restricted-only-to-stage-of-filing-of-fir-sc\/","url_meta":{"origin":326006,"position":2},"title":"Power of HC under Section 482 CrPC to prevent abuse of process not restricted only to stage of filing of FIR: SC","author":"Bhumika Indulia","date":"November 19, 2018","format":false,"excerpt":"Supreme Court:\u00a0A Bench comprising of S.A. Bobde and L. Nageswara Rao, JJ. allowed an appeal filed against the judgment of the Delhi High Court whereby it had dismissed appellant's\u00a0writ petition seeking to quash the FIR filed against them. The case arose out of a property matter between the appellants and\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":241875,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/01\/06\/hp-hc-inherent-powers-under-s-482-crpc-is-not-inhibited-by-s-320-crpc-and-fir-as-well-as-criminal-proceedings-can-be-quashed-by-exercising-the-same-hc-reiterates\/","url_meta":{"origin":326006,"position":3},"title":"HP HC | Inherent powers under S. 482 CrPC is not inhibited by S. 320 CrPC and FIR as well as criminal proceedings can be quashed by exercising the same; HC reiterates","author":"Editor","date":"January 6, 2021","format":false,"excerpt":"Himachal Pradesh High Court: \u00a0Vivek Singh Thakur, J., while exercising powers under Section 482 CrPC, allows the present petition,\u00a0 stating, \u201c\u2026 power of High Court under Section 482 CrPC is not inhibited by the provisions of Section 320 CrPC and FIR as well as criminal proceedings can be quashed by\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":260230,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/17\/settlement-terms-decided-by-mediation-and-conciliation-centre-can-be-the-reason-for-quashing-of-a-first-information-report-under-s-482-crpc\/","url_meta":{"origin":326006,"position":4},"title":"Settlement terms decided by Mediation and Conciliation Centre, can be the reason for quashing of an FIR under S. 482 CrPC: All HC","author":"Bhumika Indulia","date":"January 17, 2022","format":false,"excerpt":"Allahabad High Court: Rajeev Singh, J., reiterated that under Section 482 of the Criminal Procedure Code, an FIR i.e. First Information Report can be quashed in view of the settlement terms. Application under Section 482 CrPC was filed with a request that the matter may be referred to the Mediation\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":208941,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/01\/29\/del-hc-plea-of-debt-being-time-barred-becomes-inconsequential-where-issuance-of-cheque-gives-rise-to-presumption-of-amount-being-due\/","url_meta":{"origin":326006,"position":5},"title":"Del HC | Plea of debt being time barred becomes inconsequential where issuance of cheque gives rise to presumption of amount being due","author":"Bhumika Indulia","date":"January 29, 2019","format":false,"excerpt":"Delhi High Court:\u00a0The Bench of R.K. Gauba, J. dismissed a petition filed under Section 482 CrPC holding it to be an abuse of process of law. Petitioner was accused for committing an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (dishonour of cheque). It was alleged that\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/326006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=326006"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/326006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/314886"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=326006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=326006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=326006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}