Mediated settlement and accepted payment can justify quashing cheque dishonour complaints as an abuse of process.

A mediated settlement recorded in writing and acted upon, with the agreed consideration accepted by the complainant, can justify quashing of cheque dishonour complaints in exercise of inherent powers to prevent abuse of process. Where the settlement deed and mediation record show that the disputes were amicably resolved and the complainant agreed to withdraw the proceedings, a later objection that the settlement was not placed before the court may be untenable if the record and admitted payment confirm compliance. Continued prosecution after acceptance of the settlement amount was treated as an abuse of the process of court, supporting intervention in the interests of justice.

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Issues: Whether the complaints under the Negotiable Instruments Act, 1881 deserved to be quashed in exercise of inherent powers under Section 482 of the Code of Criminal Procedure, 1973 on account of a mediated settlement and payment made in terms thereof.

Analysis: The mediated proceedings and the settlement deed recorded that the disputes between the parties had been amicably resolved and that the complainant had agreed to withdraw the complaints. The settlement was signed by the parties and their counsel, and the complainant had received the agreed sum of money. The subsequent attempt to resist the settlement on the ground that it was not placed before the court was found untenable in view of the record of mediation and the admitted receipt of consideration. Continuation of the cheque dishonour proceedings after acceptance of the settlement amount was held to amount to abuse of the process of court, warranting intervention to secure the ends of justice.

Conclusion: The complaints were liable to be quashed and the petition was allowed in favour of the petitioner.

Ratio Decidendi: Where a mediated settlement is duly recorded, acted upon, and the agreed consideration is accepted, criminal proceedings arising from the settled dispute may be quashed under inherent powers to prevent abuse of process.

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