The Supreme Court on Thursday referred Bollywood actor Rajpal Yadav’s long-running cheque bounce dispute with Murli Projects Private Limited to mediation after he deposited Rs 2 crores with the Court as part payment of the outstanding dues. The Bench asked both parties to explore an amicable settlement for the remaining amount.

A Bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi noted that Yadav had earlier proposed selling his ancestral property to arrange the balance payment. The Court, however, said the parties should attempt to resolve the dispute through mediation before proceeding further with the matter.

The actor and the counsel representing Murli Projects agreed to the proposal. The case has now been referred to the Supreme Court Mediation Centre.
Supreme Court asks Rajpal Yadav and complainant to explore settlement
During the hearing, the Bench observed that Yadav had reached a point where he was considering selling his ancestral property to settle the case. The Court said it wanted both sides to explore an amicable resolution, while noting that it could still examine the matter on merits if required.

“What we are saying is that you have been brought to the verge of selling your ancestral property only to get rid of this case. Of course, we will hear on merits also, if the occasion arises. But at this stage, after losing before different courts, the scope of interference is known very well. We want that you amicably settle,” the Court remarked.

In its order, the Bench recorded that mediation could help resolve the dispute. It stated, “Going by the issues briefly raised on behalf of the parties, it seems that the matter can be amicably resolved through mediation. Consequently, the parties have agreed to mediation before the Supreme Court Mediation Centre.”

The Court directed both sides to approach the mediation process with an open mind and make an effort to reach a settlement over the remaining dues. It also permitted Yadav to seek the release of his passport for professional travel abroad, subject to the conditions imposed by the trial court.
Rajpal Yadav deposits Rs 2 crores after proposing sale of ancestral property
The payment follows an undertaking Yadav made before the Supreme Court during the previous hearing on October 7. At the time, the actor appeared in person and submitted demand drafts totalling Rs 1.15 crore.

His counsel informed the Court that a prospective buyer of Yadav’s ancestral property would deposit an additional Rs 85 lakhs, taking the total amount to Rs 2 crores. The remaining dues, the counsel submitted, would be arranged through the sale of the property.

The Court had taken note of the proposal and indicated that it would consider setting a schedule for payment of the balance amount. Following the deposit of Rs 2 crores, however, the Bench decided to refer the parties to mediation to explore a settlement.

The latest order does not mean that the dispute has been resolved. The parties will have to attempt to reach an agreement on the remaining amount through the mediation process.
What is the cheque bounce case against Rajpal Yadav?
The dispute stems from financial arrangements linked to Ata Pata Laapata, Yadav’s 2012 film. According to the case details, Yadav and his wife received Rs 5 crores from Murli Projects in connection with the film, which was being produced by the actor.

After the film could not be completed within the agreed timelines, the parties entered into a series of four agreements to address the dispute.

Under the third agreement, Yadav provided eight security cheques to Murli Projects. This agreement was subsequently replaced by a consent agreement dated April 21, 2013. According to Yadav’s plea, the later agreement provided for the return of the eight security cheques and the issuance of four fresh cheques worth Rs 10 crores each.

Yadav has alleged that Murli Projects did not return the original security cheques and instead presented seven of them for payment. The cheques were dishonoured, leading to criminal complaints against the actor and his wife.

In his plea before the Supreme Court, Yadav argued that the subsequent consent agreement had rendered the earlier cheques invalid. On that basis, he contended that the complaints filed under Section 138 of the Negotiable Instruments Act were not maintainable.

Also Read: “Perfect at doing drama”: Supreme Court raps Rajpal Yadav, grants final two weeks to deposit Rs 2 crore