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<h1>Mediation Settlement Leads to Quashing of Section 138 Negotiable Instruments Act Cheque Dishonour Case on Appeal</h1> In an appeal concerning prosecution under Section 138 of the Negotiable Instruments Act, the SC recorded a mediation settlement between the parties and ... Dishonour of Cheque - matter settled between the parties through the process of mediation - HELD THAT:- The said settlement agreement is taken on record. The parties shall abide by the terms of the said settlement agreement. The impugned order dated 02.11.2023 stands set aside and criminal proceedings arising out of S.T.C.No.62/2021 pending on the file of the learned Judicial Magistrate Court-II, Ponneri, for the offence punishable under Section 138 of the Negotiable Instrument Act, 1881 are hereby quashed. Appeal disposed off. Leave to appeal was granted against a High Court order refusing to quash criminal proceedings in S.T.C. No. 62/2021 pending before the Judicial Magistrate Court-II, Ponneri, for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881. The appellant, arraigned as an accused in the cheque dishonour case, sought quashing of the proceedings. During pendency of the appeal, the parties resolved their dispute through mediation and executed a settlement agreement dated 18.08.2025. The Supreme Court took the settlement on record and directed that 'the parties shall abide by the terms of the said settlement agreement.' In view of the settlement, the Court set aside the impugned High Court order dated 02.11.2023 and ordered that the criminal proceedings in S.T.C. No. 62/2021 'are hereby quashed.' All pending applications were also disposed of.
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