The Karnataka High Court has issued a significant directive stating that in Negotiable Instruments Act cases under the Negotiable Instruments Act, where a convict offers settlement in appeal, deviation from compromise terms will lead to automatic restoration of the conviction order.
Justice M Nagaprasanna emphasized that such deviations allow convicts to exploit legal procedures, urging courts to uphold compromise terms rigorously. The directive came during the hearing of a petition filed by Hemachandra M Kuppalli seeking expedited hearing and restoration of a conviction order against Rakshit representing M/s R.B.Green Field Agro Infra Pvt Ltd.
The petitioner initiated proceedings under Section 138 of the Negotiable Instruments Act, leading to the trial court’s conviction of the accused. During the appeal process, a joint memo for settlement was filed, resulting in the conviction order’s annulment at the Lok Adalat. However, the accused failed to comply with the settlement terms, prompting the petitioner’s execution petition in 2017. Subsequently, a writ petition was filed in 2023 due to the lack of progress in the execution case.
The High Court referenced Damodar S. Prabhu v. Sayed Babalal H (2010), highlighting guidelines for settlement under Section 138. It underscored the need for accused individuals to demonstrate bona fides by paying a portion of the cheque amount as costs. The Court asserted that non-compliance with such guidelines renders the Lok Adalat’s reference erroneous.
To rectify the situation, the Court empowered itself to issue warrants to secure the accused’s presence and quashed the Lok Adalat‘s award. The proceedings before the Sessions Court were reinstated to ensure justice.
Appearance: Senior Advocate P.P.Hedge represented by Advocate Sharadi S Shetty for the Petitioner. HCGP K.P Yashodha appeared for R 3 to 5
Case Title: Hemachandra M Kuppalli AND M/s R.B.Green Field & Others
Case No: WRIT PETITION No.12169 OF 2023
