38.6c New Delhi, India, Wednesday, April 17, 2024

Accused Who Fails To Pay The Entire Amount Of Settlement Cannot Ask For Refund: Delhi HC [Read Order]

By LawStreet News Network      15 October, 2019 10:20 AM      0 Comments
Accused Who Fails To Pay The Entire Amount Of Settlement Cannot Ask For Refund: Delhi HC [Read Order]

The Delhi High Court on September 23, 2019, in the case of Sainik Welfare Organization (India) v. State & Ors., has held that even if settlement fails and bail is cancelled, the accused is not entitled to receive the part payment of the settlement amount.

A single judge bench of Justice Vibhu Bakhru passed the ruling while hearing a petition filed by the petitioner impugning an order dated 05.11.2018 passed by the learned ASJ to the extent that it directed the petitioner to refund the money received from the accused in terms of the settlement arrived between the parties.

In this case, the petitioner had filed a complaint on the basis of which an FIR was registered under Sections 420/468/471/34 of the Indian Penal Code, 1860.

Following the FIR, the accused (respondent nos. 2 to 4) had filed applications seeking anticipatory bail in the said matter. During the course of the proceedings, the accused had expressed the desire to settle the disputes with the petitioner. Consequently, the parties were referred to the Mediation Centre, Tis Hazari Courts, Delhi. Before the Mediation Centre, the concerned parties arrived at a settlement and entered into a settlement agreement. In terms of the settlement, respondent nos. 2, 3 & 4 agreed to pay a sum of ₹4,50,00,000/- to the petitioner in settlement of its claims.

Although, part payments were made by respondent nos. 3 and 4, the respondents failed to pay the entire amount as agreed. This led the petitioner to file an application for cancellation of the anticipatory bail granted to the accused solely on the basis of the settlement arrived at between the petitioner and them.

The said application was allowed by the learned ASJ. Anticipatory bail granted to the respondent nos. 2 to 4 was cancelled. However, the Court directed the petitioner to refund the amount received from the accused within a period of fifteen days.

After considering the facts of the case, the High Court observed that “The only reason indicated for the same is that the money was given in terms of the settlement arrived at before the Mediation Centre which has not been fulfilled. Plainly, this cannot be the ground for directing return of the consideration paid by respondent nos. 3 and 4. They had secured an order of anticipatory bail on the basis of the settlement, which they had failed to perform. Clearly, they were not entitled to any order for refund of the amount paid to the petitioner.”

The High Court was also of the view that the learned ASJ had no jurisdiction to direct refund of any amount paid by respondent nos.3 and 4. “The question whether the petitioner is entitled to refund of the amount paid by it and/or damages and/or any other relief in respect of the transaction entered into by it, is not the subject matter of adjudication before the learned ASJ,” the court observed.

Accordingly, the impugned order, to the extent, it directed the petitioner to refund the amount paid by respondent nos. 3 and 4, was set aside by the court.

[Read Order]

Share this article:

User Avatar

Leave a feedback about this

Trending Judiciary
Baba Ramdev, Acharya Balkrishna offer to make public apology in SC for misleading advertisements

Baba Ramdev and Acharya Balkrishna offer public apology in SC for misleading ads, court deliberates acceptance.

16 April, 2024 01:57 PM
Trending Judiciary
Non-tear of the hymen is of no consequence in cases of penetrative sexual assault: Guwahati HC in POCSO case [Read Judgment]

Hymen tear or genital injuries are not a sine qua non to prove penetrative sexual assault, the Guwahati High Court has held in a case under the POCSO Act, 2012.

16 April, 2024 05:06 PM


Trending Business
SC sets aside judgment upholding arbitral award against DMRC [Read Judgment]

Supreme Court overturns arbitral award favoring Reliance Infrastructure subsidiary against DMRC, citing grave miscarriage of justice.

11 April, 2024 11:43 AM
Trending Political NEWS
Delhi HC rejects third plea for Arvind Kejriwal's removal as Delhi CM, blasts petitioner for abuse of judicial process [Read Judgment]

Delhi High Court dismisses the third PIL plea before it seeking Aam Aadmi Party leader Arvind Kejriwal’s removal as Chief Minister of Delhi, imposes Rs. 50,000 cost on petitioner.

11 April, 2024 03:29 PM
Trending Judiciary
Use of social media to interfere with administration of justice needs serious consideration: SC [Read Judgment]

Supreme Court warns against social media misuse in legal matters, cautions against prejudicial posts interfering with justice.

11 April, 2024 05:44 PM
Trending Legal Insiders
Two-day conference on April 13-14 on Technology and Dialogue between SC and Singapore

Explore AI's role in law at the India-Singapore Supreme Court conference on technology, enhancing judicial processes and access to justice, April 13-14, 2024.

12 April, 2024 06:16 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email