Settlement in a cheque dishonor case u/s 138 NI Act recorded by the court after satisfying its...

Settlement in a cheque dishonor case u/s 138 NI Act recorded by the court after satisfying its voluntariness is legally binding. Upon breach, the court must initiate recovery proceedings u/s 421 read with Section 431 CrPC, treating the settlement amount as a fine. Referring the matter to mediation is not mandatory for court-recorded settlement. The impugned order setting aside the settlement was incorrect as the settlement was voluntary and received court's approval. The High Court directed the trial court to proceed with recovery of the settlement amount upon the accused's default. .....

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