Supreme Court Encourages Mediation in Rajpal Yadav's Cheque Dispute: What’s Next for the Actor?
Supreme Court's Mediation Directive
In a recent ruling, the Supreme Court of India has directed that the ongoing cheque dishonor case involving actor Rajpal Yadav be sent to mediation. This decision follows the actor's deposit of ₹2 crore with the court's registry.
The court also instructed the lower court to return Yadav's passport, allowing him to fulfill his professional obligations abroad, while adhering to any conditions set forth.
A bench led by Chief Justice Surya Kant and Justice Joymalya Bagchi expressed optimism about the potential for an amicable resolution, given the substantial amount deposited and the concerns raised by both parties.
The Chief Justice indicated that a mediator would be appointed to facilitate the resolution process.
The bench instructed the involved parties to coordinate with the mediator to schedule a meeting, which could be conducted either in person or virtually. Yadav is permitted to travel for work, provided he complies with the court's stipulations and informs the trial court upon his return.
Yadav's attorney, Vikrant, emphasized the necessity for the actor to travel to Canada for a professional engagement, which could yield financial benefits.
During the proceedings, it was noted that Yadav had complied with previous court orders by depositing the full ₹2 crore and requested that his appeal against his conviction and three-month sentence in seven cheque dishonor cases be considered on its merits.
Initially, the Chief Justice indicated that the court would review the case but later suggested mediation as a viable option for resolution.
The Chief Justice urged the parties to consider settling the matter, highlighting the ₹2 crore currently held by the court as a basis for negotiation.
Yadav's counsel revealed that the actor had sold family property to gather the necessary funds.
The Chief Justice remarked that the court's ability to intervene at this stage was limited.
Previously, on October 7, the Chief Justice encouraged Yadav to focus on creating quality films to restore his public image, acknowledging a prior payment of ₹1.15 crore made by Yadav in relation to the cheque cases.
The legal conflict traces back to a 2010 agreement in which Yadav received ₹5 crore from Murli Projects Pvt Ltd to fund his directorial debut, 'Ata Pata Laapata.'
The complainant alleged that Yadav issued seven cheques of ₹1.05 crore each in 2013 to settle the financial assistance, which were subsequently dishonored.
According to the complainant, a 2012 agreement stipulated that Yadav, along with his wife and their company, would repay approximately ₹11 crore, including interest.
On September 15, the Supreme Court extended Yadav's exemption from surrendering until October 5.
On September 8, the court issued a notice regarding Yadav's plea, stating that an exemption from surrendering would be granted upon depositing ₹5 crore with the registry.
On July 10, the Delhi High Court upheld Yadav's conviction in multiple cheque-bounce cases, sentencing him to three months in prison.
The High Court dismissed the request to overlook the significant delay of 1,894 days in filing appeals against the conviction and mandated Yadav to pay over ₹1 crore to the complainant for each of the seven cases.
However, it clarified that the ₹2 crore already paid by Yadav would be deducted from this amount and suspended the sentence for two months to allow Yadav time to appeal the decision.
Additionally, the High Court ordered Yadav's wife, Radha Rajpal Yadav, to pay approximately ₹5.5 lakh as a fine for each case, with a three-month imprisonment penalty for non-payment.
This ruling followed revision petitions filed by Yadav and his wife challenging a 2019 sessions court decision that upheld their convictions from a magisterial court in April 2018.
The magisterial court had initially sentenced Yadav to six months, which was later reduced to three months.