https://www.taxtmi.com/caselaws?id=390799 A cheque issued pursuant to a Lok Adalat settlement in acknowledgment of an existing liability can attract Section 138 of the Negotiable Instruments Act if dishonoured. The Court noted that the settlement was entered into after an earlier conviction, so the cheque was not a mere settlement instrument divorced from liability. Because a Lok Adalat award is deemed to be a decree, it creates a legally enforceable obligation. The earlier authority cited was distinguishable on its facts, as the cheque there was not issued in discharge of an existing debt. Accordingly, the complaint was maintainable and quashing of the proceedings was unsustainable. en-us Fri, 18 Oct 2019 00:00:00 +0530 Thu, 07 Nov 2024 12:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=390799 A cheque issued pursuant to a Lok Adalat settlement in acknowledgment of an existing liability can attract Section 138 of the Negotiable Instruments Act if dishonoured. The Court noted that the settlement was entered into after an earlier conviction, so the cheque was not a mere settlement instrument divorced from liability. Because a Lok Adalat award is deemed to be a decree, it creates a legally enforceable obligation. The earlier authority cited was distinguishable on its facts, as the cheque there was not issued in discharge of an existing debt. Accordingly, the complaint was maintainable and quashing of the proceedings was unsustainable. Case-Laws Indian Laws Fri, 18 Oct 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=390799