TMI Blog2020 (1) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... f action under Section 138 of the Negotiable Instruments Act. Every award of the Lok Adalat is, as held in K.N. Govindan Kutty Menon's case [ 2011 (11) TMI 783 - SUPREME COURT ], deemed to be decree of a civil court and executable as a legally enforceable debt. The dishonour of the cheque gave rise to a cause of action under Section 138 of the Negotiable Instruments Act. The impugned judgment and order is misconceived. Appeal allowed - decided in favor of appellant. - Criminal Appeal No. 1580 of 2019 (arising out of Special Leave Petition(Cr)No.8827/2016) - - - Dated:- 18-10-2019 - Indira Banerjee And M. R. Shah, JJ. N.K. Mody, Sr. Adv., Siddhant Gupta, Prabudahu Singh Gour, Advs. and M.P. Shorawala, for the Peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In terms of the compromise, the accused respondent was required to make a payment of ₹ 3,51,750/- which was paid on the same day through a post dated cheque drawn in favour of the appellant complainant. The said cheque drawn by the accused respondent in favour of the appellant complainant as per the compromise arrived at between the appellant complainant and the accused respondent before the Lok Adalat, also got dishonoured, whereupon the appellant complainant filed criminal complaint No.547/2009 u/s 138 of the Negotiable Instruments Act, referred to above, against the accused respondent. The accused respondent filed an application before the Judicial Magistrate, First Class Narsinghgarh for dismissal of the com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orceable debt; and iii) the cheque so issued had been returned due to insufficiency of funds. Lalit Kumar Sharma's case is distinguishable on facts, in that the cheque had not been issued in discharge of any debt or liability of the Company of which the accused were said to be the Directors. The cheque was found to have been issued for the purpose of arriving at a settlement. In the instant case, the respondent clearly had a liability. As observed above, there was an earlier adjudication which led to the conviction of the respondent accused. Thus there was adjudication of liability of the respondent accused. While the appeal was pending, the matter was settled in the Lok Adalat in acknowledgment of liability of the acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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