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Indian Laws - Highlights / Catch Notes

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Dishonor of Cheque - on the basis of compromise deed relief ...


Compromise Deed Void in Cheque Dishonor Case Allows Reinstatement of Original Complaint; Trial Can Proceed.

October 9, 2021

Case Laws     Indian Laws     SC

Dishonor of Cheque - on the basis of compromise deed relief granted to accused - violation of terms of settlement agreement - In the event that the compromise deed is found to be void ab initio on account of coercion, the very basis for quashing of the first complaint is removed since the settlement agreement is deemed to have never existed and hence it had no effect on the liability subsisting under the first complaint. The appellants may then approach the competent court for reinstatement of the original complaint and the trial can proceed on that basis. - SC

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