Settlement scheme compliance depends on tender date, not credit date, when an accepted demand draft is duly realised.

Under the Kar Vivad Samadhan Scheme, rejection of a final certificate solely because the deposited demand draft was credited to the Government account after the stipulated period was held unsustainable. Where the demand draft or cheque was accepted and duly realised, compliance was to be assessed by reference to the date of tender or deposit, not mechanically by the later credit date. The benefit of the Scheme could not be denied merely because banking processing caused delayed realisation, provided the instrument was not dishonoured. The matter was remitted for fresh consideration in accordance with this settled position.

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Issues: Whether rejection of the request for a final certificate under the Kar Vivad Samadhan Scheme on the ground that the deposited amount was credited to the Government account after the expiry of the stipulated period was justified.

Analysis: The declarant had applied for settlement under the Scheme, the designated authority had determined the payable amount, and the appellant had deposited a demand draft within time. The amount was later credited to the Government account after the bank processing date. The order proceeded only on the basis of the credit date and did not consider the legal position that, where a cheque or demand draft is accepted and realised, the date of tender/deposit may be treated as the relevant date for compliance. The reasoning was supported by the settled view that benefit under the Scheme cannot be denied merely because realisation occurred after the due date when the instrument was duly accepted and was not dishonoured.

Conclusion: The rejection of the final certificate was not sustained; the matter was required to be reconsidered in accordance with the settled legal position, and the case was remitted for appropriate fresh decision.

Ratio Decidendi: Where payment under a settlement scheme is made by an accepted demand draft or cheque that is duly realised, compliance is to be judged with reference to the tender/deposit of the instrument and not mechanically by the date on which the amount is credited to the Government account.

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