Rajeev Khandelwal v. State of Maharashtra - S.138 NI Act - Settlement - Costs

Negotiable Instruments Act 1881 - Section 138 - During the pendency of the revision before High Court, the complainant and accused entered into an agreement. The accused was acquitted, subject to the condition that he shall deposit the cost with the State Legal Services Authority in accordance with the judgment of this Court in Damodar S. Prabhu v. Sayed Babalal H. - Allowing appeal, SC observed: The law laid down in the aforementioned judgment cannot be regarded as a binding precedent, as every case must be considered on its own facts- Construing it to be a law would discourage settlements at the revisional stage - The direction imposing costs on the appellant, to be paid to the Legal Services Authority cannot be sustained in the eye of law, particularly when the complainant does not want any further amount and the appellant has expressed his inability to comply with the same, which aspect is not in dispute. (Para 5-7)

Case Info


Case Details

  • Case name: Rajeev Khandelwal v. State of Maharashtra & Anr.
  • Coram: Justice M.M. Sundresh; Justice Satish Chandra Sharma.
  • Judgment date: 4 November 2025.

Caselaws and Citations

  • Damodar S. Prabhu v. Sayed Babalal H., (2010) 5 SCC 663.

Statutes / Laws Referred

  • Section 138, Negotiable Instruments Act, 1881.
  • Article 142, Constitution of India.