Cheque Dishonour: Rajasthan High Court Sets Aside Conviction After Compromise, But Imposes 15% Cost On Drawer Citing Failed Appeal

The Rajasthan High Court dealt with a case of cheque dishonor under Section 138 of the Negotiable Instruments Act, where the parties reached a settlement. The Court noted that while settlement between the parties could lead to the quashing of proceedings, it must be done in accordance with the law. The judgment emphasized that parties can settle matters related to cheque dishonor, but such settlements should not be seen as an excuse for evading legal responsibilities under the Negotiable Instruments Act.