T.Francis Nelson Vs N.Sivakumar Rajaprabhu — Cheque Dishonour | Madras HC (2026)

T.Francis Nelson Vs N.Sivakumar Rajaprabhu — Cheque Dishonour | Madras HC (2026)

What the court decided

AI extract

Outcome

No quashing; trial to continue and be completed within three months; complaint to be dismissed if the petitioner pays the remaining Rs.1,25,000/- during trial per the compromise memorandum dated 07.05.2021; connected miscellaneous petition closed

Issue for consideration

Whether the pending proceedings in C.C.No.600 of 2016 (Section 138 NI Act complaint) before the Judicial Magistrate Court, Alandur, Chennai should be quashed, notwithstanding the Lok Adalat memorandum of compromise and settlement dated 07.05.2021 and the petitioner's admitted non-payment of the settled balance

Court's answer

The court declined to quash the entire proceedings because, even according to the petitioner, only Rs.9,75,000/- of the settled Rs.11,00,000/- had been paid and the balance remained unpaid, leaving the complaint pending and the trial in progress

Ratio / Principle

The criminal original petition is dismissed and the trial court is directed to proceed with the trial and complete it within three months from the date of receipt of the order

Key takeaways

If, while the trial is pending, the petitioner pays the remaining Rs.1,25,000/-, the trial court is directed to dismiss the complaint as per the memorandum of compromise and settlement dated 07.05.2021ratio¶21

Detailed headnote1 paragraphs

Madras High Court (G.K. ILANTHIRAIYAN, J., 10.03.2026) dismissed Crl.O.P.No.7071 of 2023, a Section 482 Cr.P.C. petition to quash C.C.No.600 of 2016 before the Judicial Magistrate Court, Alandur, Chennai — a Section 138 NI Act complaint alleging a Rs.17,00,000/- business loan repaid by two cheques (Rs.15,00,000/- and Rs.2,00,000/-) returned dishonoured for 'funds insufficient'. Though the parties had signed a Lok Adalat memorandum of compromise and settlement dated 07.05.2021 under which payment of Rs.11,00,000/- would end the complaint, the petitioner had paid only Rs.9,75,000/-. The court therefore refused to quash, directed the trial court to complete the trial within three months of receiving the order, and held that the complaint shall be dismissed if the remaining Rs.1,25,000/- is paid during trial as per the compromise memorandum. Connected Crl.MP.No.4429 of 2023 closed.

Crl.O.P.No.7071 of 2023

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 10.03.2026

CORAM:

THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN

Crl.O.P.No.7071 of 2023 and Crl.MP.No.4429 of 2023

T.Francis Nelson ... Petitioner

Vs.

N.Sivakumar Rajaprabhu ... Respondent

Prayer: Criminal Original petition filed under Section 482 of Cr.P.C. praying to call for all the records in C.C.No.600 of 2016 on the file of Judicial Magistrate Court, at Alandur, Chennai and quash the same.

For Petitioner : Ms.V.Sandhya for Mr.M.Vijay Anand For Respondent : No appearance

ORDER

This criminal original petition has been filed to quash the

proceedings in C.C.No.600 of 2016 on the file of Judicial Magistrate Court, at Alandur, Chennai .

2 . The petitioner is the accused in the complaint lodged by the Page 1 of 4

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Crl.O.P.No.7071 of 2023 respondent for the offence punishable under Section 138 of NI Act on the allegation that while the accused was in need of money for business purpose, he approached the respondent for loan. Also he availed loan to the tune of Rs.17,00,000/- by way of three payments. Thereafter, he assured to repay the said amount with interest at the rate of 12% p.a. He

gave two cheques for a sum of Rs.15,00,000/- and Rs.2,00,000/respectively. Both the cheques were presented for collection. However, both were returned dishonoured for the reason ‘funds insufficient’. After issuance of statutory notice, the respondent initiated proceedings under Section 138 of NI Act and the same was taken cognizance by the trial court. While pending the complaint, matter was referred before the Lok Adalat. Before the Lok Adalat, both the petitioner and the respondent entered into memorandum of compromise and settlement dated 07.05.2021. As per the compromise and settlement, on payment of Rs.11,00,000/- by the accused, the complaint will be withdrawn, failing which the respondent can proceed with the proceedings under Section 138 of NI Act as against the accused in accordance with law. Even according to the petitioner, he had paid only a sum of Rs.9,75,000/- so far and he failed to pay the remaining amount. Therefore, the complaint is still pending and the trial court has proceeded with the trial. Hence, on this ground, this court is not inclined to quash the entire proceedings. Page 2 of 4

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Crl.O.P.No.7071 of 2023

3 . Accordingly, this criminal original petition is dismissed. The trial court is directed to proceed with the trial and complete the same within a period of three months from the date of receipt of this order. It is made clear that while pending trial, if the petitioner pays the remaining amount of Rs.1,25,000/-, the trial court is directed to dismiss the complaint as per the memorandum of compromise and settlement dated 07.05.2021. Consequently, connected miscellaneous petition is closed.

10.03.2026

Index : Yes/No Neutral citation : Yes/No Speaking/non-speaking order lok

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Crl.O.P.No.7071 of 2023

G.K.ILANTHIRAIYAN, J.

lok

To

Judicial Magistrate Court, at Alandur, Chennai

Crl.O.P.No.7071 of 2023

10.03.2026

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