SC refers Rajpal Yadav cheque-bounce case to mediation, orders passport release

The Supreme Court on Thursday referred actor Rajpal Yadav’s cheque-dishonour dispute to mediation after noting that he and his wife had deposited Rs 2 crore with the court registry.

The bench, comprising Chief Justice Surya Kant and Justice Joymalya Bagchi, also directed the trial court to release Yadav’s passport to allow him to travel abroad for professional commitments, subject to conditions imposed by the court.

The Chief Justice said the dispute could be resolved amicably through mediation and that he would appoint a sole mediator. Both parties will have to coordinate with the mediator and decide a date for the proceedings, which may be held in person or online.

Yadav’s lawyer told the court that the actor needed to travel to Canada for a professional assignment. He also said Yadav had sold his ancestral property to arrange the Rs 2 crore deposit.

The actor has challenged his conviction and three-month prison sentence in seven cheque-dishonour cases. During Thursday’s hearing, his lawyer urged the Supreme Court to hear the plea on merits, but the bench encouraged both sides to settle the dispute.

On October 7, the court had taken note of a payment of Rs 1.15 crore made by Yadav in connection with the long-running cases.

The dispute dates back to 2010, when Yadav received Rs 5 crore from M/s Murli Projects Pvt Ltd to finance his directorial debut, Ata Pata Laapata. The company alleged that seven cheques issued by the actor towards repayment were dishonoured.

According to the complainant, an agreement signed in 2012 required Yadav, his wife and their company to repay around Rs 11 crore, including interest.

In July, the Delhi High Court upheld Yadav’s case and reduced the sentence to three months’ imprisonment. It also directed him to pay more than Rs 1 crore in each of the seven cases, while allowing time for him to approach a higher court.

The cases stem from a 2018 magisterial court verdict convicting Yadav and his wife, Radha Rajpal Yadav. Their convictions were upheld by a sessions court in 2019.