Supreme Court Disposes of NI Act Petition with Consensual Payment Terms.
21 April 2025
Negotiable Instruments Act >> Criminal Law
In Vinod Boob Vs Dodballaur Spinning Mills Pvt. Ltd. & Anr., the Petitioner-complainant filed a Special Leave Petition challenging a Karnataka High Court judgment that had overturned the conviction and sentence of the Respondents-accused under Section 138 of the Negotiable Instruments Act, 1881, thereby setting aside the orders of both the Additional Sessions Court and the Metropolitan Magistrate.
During the hearing before the Supreme Court, the learned counsel for both parties jointly requested a consensual order. The agreed terms were as follows:
i. 20% of the amount deposited by the Respondents with the Additional Sessions Court, along with any accrued interest, would be immediately released to the Petitioner.
ii. The Respondents would pay the Petitioner an additional sum of Rs. 9.50 lakhs in six equal bimonthly installments via demand draft or RTGS.
iii. This payment would be made without prejudice to the rights and arguments of both parties in ongoing arbitration proceedings between them.
The Supreme Court found the proposed consensual terms to be fair and reasonable. Consequently, the Special Leave Petition was disposed of in accordance with these terms. The Court explicitly clarified that this order would not impact or affect the pending arbitration proceedings between the parties.
Section 138, Negotiable Instruments Act - 1881
Negotiable Instruments Act, 1881