Cheque Bounce matters can be referred for mediation: Delhi High Court
October 21, 2017Recently, the Delhi High Court held that a criminal compoundable offence as defined under section 138 can be referred for mediation. The bench comprising of Chief Justice Gita Mittal and Justice Anu Malhotra observed that the Code of Civil Procedure contains specific provisions in section 89 of the Civil procedure of the Code states that certain matters can be resolved through alternate dispute redressal mechanism. However, the code does not contain any provision with respect to criminal cases. The position is similar with respect to matters covered under the Negotiable Instruments Act.
The question before the bench to adjudicate was can a criminal court in any manner refer the parties before it to dispute resolution by mediation. To answer this question, the bench pointed out that though there is no statutory provision which explicitly provides that matters before a criminal court can be referred for mediation but the code for Criminal Procedure does allow and recognize settlement without stipulating or restricting the process by which it may be reached.
Hence, there is no restriction for using the alternate dispute mechanisms including arbitration, mediation, conciliation as recognised under Section 89 of CPC for the purposes of settling disputes which are the subject matter of offences covered under Section 320 of Cr.P.C. Hence, it is legal to refer a criminal compoundable matter as given under Section 138 of the Negotiable Instruments Act for mediation.
The Delhi Mediation and Conciliation Rules, 2004 issued in exercise of the rulemaking power under Part -10 and Clause(d) of sub-section (ii) of Section of 89 as well as all other power enabling the High Court of Delhi to make such rules, applies to mediation arising out of civil as well as the criminal cases.
The settlement reached in mediation arising out of criminal case does not tantamount to a decree by a civil court and cannot be executed in a civil court. However, a settlement in mediation arising out of referral in a civil court can result in a decree upon compliance with the procedure under Order XXIII of the C.P.C. This can never be so in a mediation settlement arising out of a criminal case.