A bench comprising of Justices Ajay Rastogi and CT Ravikumar (Supreme Court) ordered a convict under the Negotiable Instrument Act to pay a cost of ₹ 5 Lakhs as a condition to accept settlement between the parties observing that "Looking to the quantification of default amount in reference to which the petitioner was convicted under Section 138 of the NI Act, let an additional sum of Rs. 5 lakhs be deposited by the petitioner with the Supreme Court Advocate-on-Record Advocates Welfare Fund within a period of two months and the receipt of money deposited be placed with the Registry of this Court."

The Supreme Court noted that the Appellant had approached the Supreme Court challenging the order of his conviction passed by three courts including the Karnataka High Court under section 138 of NI Act.

The Top Court observed that "It is tyranny of justice caused to the complainant after spending 10 years in litigation left with no other option but to compromise for the reason that if the matter is processed any further in this Court, he will be deprived of his legitimate claim which has at least now become due to him after his complaint being tried by three different Courts in hierarchy upholding conviction of the petitioner with the concurrent finding of guilt for offence under Section 138 of the Negotiable Instruments Act."

The Supreme Court took cognizance of the fact that a settlement between the parties have taken place and observed that "It is informed that a sum of Rs.69 lakhs has been made over by the petitioner to the complainant and counsel for the complainant has informed that he does not want to proceed against the petitioner any further as he has settled the dispute amicably, but this Court cannot be oblivious of the situation that precious judicial time of almost 10 years of the Courts has been consumed in this litigation and mere compromise entered into by the parties may not be sufficient to close the proceedings."

Taking a lenient view, the Supreme Court has directed the matter to be listed before the court on 17.01.2023 after deposition of cost of Rs. 5,00,000/-

Case Details:-

Special Leave to Appeal (Crl.) No(s). 119/2022
SANTHOSH J.   ...Petitioner

versus

V. NARASIMHA MURTHY   ...Respondent

Read the completer order on the following link:-

https://main.sci.gov.in/supremecourt/2021/26768/26768_2021_6_6_39071_Order_18-Oct-2022.pdf