Suspension granted following partial payment and pending revision petitions, subject to strict compliance with court-imposed conditions.
In a significant development, the Delhi High Court has temporarily suspended the sentence of Rajpal Naurang Yadav, a petitioner convicted for cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881. The suspension was granted by Justice Dr. Swarana Kanta Sharma amidst ongoing revision petitions, taking into account a substantial payment made to the respondent, M/s. Murli Projects Pvt. Ltd.
Rajpal Yadav, who had been sentenced to three months of simple imprisonment and a hefty fine of Rs. 1.35 crore for each case, had his sentence suspended following a payment of Rs. 1.5 crore to the respondent. This payment, along with a previously deposited amount of Rs. 75 lakhs, prompted the court to reconsider the immediate need for incarceration, especially given the petitioner's compliance with partial payment terms.
The court's order came after a series of developments, including Yadav's failure to surrender by an earlier deadline due to purported delays in fund arrangements. Despite this, the court was persuaded by Yadav's subsequent efforts to make amends, including the recent financial settlement and his willingness to explore mediation for the remaining dues.
The suspension of the sentence is contingent upon several stringent conditions laid down by the court. Yadav is required to furnish a personal bond of Rs. 1,00,000 along with a surety of the same amount. Additionally, he must surrender his passport and is prohibited from leaving the country without the court’s permission. Yadav is also mandated to keep the court updated on any changes in his contact information and to personally attend the next hearing, either in person or via video conferencing.
The court noted these measures were necessary to ensure compliance and facilitate possible mediation between the parties. It also highlighted the importance of Yadav’s attendance at future hearings, given his claims of past misunderstandings regarding legal undertakings.
The case has been adjourned to March 18, 2026, for further proceedings, with the court emphasizing the need for continued dialogue and resolution between the involved parties.
Bottom Line:
Negotiable Instruments Act - Suspension of sentence - Petitioner convicted under Section 138 of the NI Act for dishonour of cheques and sentenced to imprisonment and fine - Sentence suspended temporarily considering partial payment made to the respondent, and subject to certain conditions including furnishing a personal bond, not leaving the country, and updating the Court about any change of address/contact details.
Statutory provision(s): Negotiable Instruments Act, 1881 Section 138
Sh. Rajpal Naurang Yadav v. M/s. Murli Projects Pvt. Ltd, (Delhi) : Law Finder Doc id # 2854109
