Complainant Cannot Be Permitted To Back Out Of Mutual Compromise, Would Act As “Premium” For Dishonest Litigation: Punjab & Haryana HC
1 month ago

Complainant Cannot Be Permitted To Back Out Of Mutual Compromise, Would Act As “Premium” For Dishonest Litigation: Punjab & Haryana HC

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The Punjab & Haryana High Court has made it clear that once parties have entered into mutual settlement, backing out from the same cannot be allowed under the law.In a cheque bounce case the complainant backed out from the compromise, however the court rejected the claim and quashed the complaint in view of earlier stand that compromise had taken place.Justice N.S. The Punjab & Haryana High Court has made it clear that once parties have entered into mutual settlement, backing out from the same cannot be allowed under the law. In a cheque bounce case the complainant backed out from the compromise, however the court rejected the claim and quashed the complaint in view of earlier stand that compromise had taken place. These observations were made while hearing the plea to quash the complaint, filed in cheque bounce case under Sections 138, 142 of the Negotiable Instruments Act 1881 and all subsequent proceedings arising therefrom.

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