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Vinod Boob v. Dodballaur Spinning Mills Pvt. Ltd.

Special Leave Petition (Civil) · 2025 INSC 522Decided 21 Apr 2025
Special Leave Petition (Crl.) No. 4017 of 2022
Justice Dipankar Datta · Justice Manmohan

Background

The petitioner-complainant had obtained a conviction of the respondents for a cheque-bounce offence under Section 138 of the Negotiable Instruments Act, which was upheld through two levels of trial courts. The Karnataka High Court, however, set aside the conviction and sentence. The complainant challenged that reversal before the Supreme Court.

Decision Breakdown

Rather than deciding the merits, the Supreme Court recorded a consensual settlement reached by both sides during the hearing: 20% of the amount already deposited with the trial court (with any accrued interest) would be released to the complainant immediately, and a further Rs. 9.5 lakh would be paid by the respondents in six installments every two months. The Court found these terms fair and reasonable, disposed of the petition on that basis, and clarified that the arrangement would not affect a separate, pending arbitration between the parties over the same underlying dispute.

Lesson Learnt

Cheque-bounce and other criminal appeals before the Supreme Court can be resolved through a negotiated payment settlement rather than a full judgment on guilt, and such a settlement can be structured to leave other pending legal proceedings, like arbitration, completely unaffected.

Official source (sci.gov.in)View Judgment (PDF)

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