Raiz draws a cheque of ₹ 50,000 on his own account payable to Faiz but has only ₹ 49,000 in his account. Faiz presents the same to the bank but the cheque bounces due to insufficient funds in Raiz's account. Whether the

CS Executive · Jurisprudence, Interpretation and General Laws · PYQS · December 2023
Raiz draws a cheque of ₹ 50,000 on his own account payable to Faiz but has only ₹ 49,000 in his account. Faiz presents the same to the bank but the cheque bounces due to insufficient funds in Raiz's account. Whether the above matter can be referred for amicable settlement through mediation. Explain.

Answer & Explanation:

In the matter of Dayawati vs. Yogesh Kumar Gosain (17.10.2017-Del H.C): 2017 SCC Online Del 11032, the question before Delhi High Court was whether an offence under section 138 of Negotiable Instruments Act can be referred for amicable settlement through mediation. Court stated that "even though an express statutory provision enabling the criminal court to refer the complainant and accused persons to alternate dispute redressal mechanisms (ADR) has not been specifically provided by the legislature, however, the Code of Criminal Procedure, 1973 (Cr.P.C.) does permit and recognize settlement without stipulating or restricting the process by which it may be reached. There is thus no bar to utilizing the ADR including arbitration, mediation, conciliation (recognized under Section 89 of CPC) for the purposes of settling disputes which are the subject matter of offence covered under Section 320 of Cr.P.C." In view of the above case, it can be said that the above matter can be referred for amicable settlement through mediation.

Topics: Alternative Dispute Resolution

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