*Supreme Court's Landmark Judgment: Quashing Conviction after Settlement*

*Supreme Court's Landmark Judgment: Quashing Conviction after Settlement*

The Supreme Court has recently delivered a significant judgment, emphasizing that once a complainant and the accused enter into a settlement, the conviction under Section 138 of the Negotiable Instruments Act (NI Act) cannot be sustained. The court also noted that after a settlement, the complainant cannot pursue the original complaint.

*Key Points:*

- *Effect of Settlement:* After a settlement, the original complaint cannot be pursued, and action can be initiated afresh in accordance with the terms of the settlement.
- *Quashing Conviction:* If a settlement is reached, the conviction under Section 138 of the NI Act can be quashed, even if an appeal is pending or the conviction has been upheld by a higher court.

*Role of the Court:*

The court must ensure that the settlement is voluntary and without any coercion.

*Case Details*

GIAN CHAND GARG ...APPELLANT VERSUS HARPAL SINGH & ANR …RESPONDENTS

- *Case Number:* Criminal Appeal No. of 2025 (Arising out of Special Leave Petition (Criminal) No. 8050 of 2025)
- *Court:* Supreme Court of India
- *Judges:* Justice Aravind Kumar and Justice Sandeep Mehta
- *Date of Judgment:* August 11, 2025

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