In Brief
Arun Kumar sought criminal prosecution for dishonour of a cheque given by Anita Mishra as settlement of a prior adjudicated dispute. The High Court had quashed the proceedings, finding the cheque was issued as part of settlement rather than in discharge of existing debt. The Supreme Court allowed the appeal, holding that where a settlement acknowledges pre-existing adjudicated liability and the settlement cheque is dishonoured, this creates a fresh and independent cause of action capable of sustaining prosecution under the Negotiable Instruments Act."
The lawyer headnote and full judgment text are available to registered users.