2019 (6) TMI 1589 - HC - Indian Laws

Dishonor of Cheque - It is submitted by learned counsel for the applicant that the present matter relates to dishonour of cheque and the said matter can be well considered by Mediation Centre of this Court - HELD THAT - It is directed that applicant shall deposit a sum of Rs. 15, 000/- within two weeks from today with the Mediation Centre of which 50% shall be paid to the opposite party no. 2 for appearance before the Mediation Centre - The matter is remitted to the Mediation Centre with the direction that same may be decided after giving notices to both the parties. It is directed that Mediation Centre shall decide the matter expeditiously preferably within a period of three months. Thereafter the case shall be listed before appropriate Bench in the second week of September 2019.

Summary

Issues:
1. Dishonour of cheque
2. Mediation Centre jurisdiction
3. Deposit of amount for Mediation
4. Timely resolution by Mediation Centre
5. Stay on arrest pending Mediation
6. Consequences of non-depositing amount

Analysis:
1. The judgment pertains to a matter involving the dishonour of a cheque. The applicant's counsel suggested that the case could be appropriately handled by the Mediation Centre of the Court, indicating a potential alternative dispute resolution mechanism.

2. The Court directed the applicant to deposit a sum of Rs. 15,000 with the Mediation Centre, with half of the amount to be paid to the opposing party for their appearance before the Centre. This decision highlights the jurisdiction and authority of the Mediation Centre in resolving disputes related to cheque dishonour cases.

3. The matter was then referred to the Mediation Centre for resolution, with instructions for both parties to be notified and given an opportunity to present their case. The directive emphasizes the importance of utilizing the Mediation Centre's services for an efficient and fair resolution process.

4. The Court further instructed the Mediation Centre to expedite the resolution process, aiming for a decision within three months. This timeline ensures a timely resolution of the dispute, promoting swift justice and avoiding prolonged legal proceedings.

5. Pending the Mediation process, the Court ordered a stay on the arrest of the applicant in the related complaint case. This stay on arrest demonstrates the Court's consideration for the applicant's situation and the potential for resolution through alternative means like Mediation.

6. The judgment also outlined the consequences of failing to deposit the required amount within the stipulated period. Non-compliance would result in the automatic vacation of the interim protection granted to the applicant, emphasizing the importance of adhering to the Court's directives for a fair and effective resolution process.