Filmmaker Ram Gopal Varma has been acquitted by a Mumbai sessions court in a cheque-bouncing case, after settling the matter by paying Rs 3 lakh to the complainant company. The resolution was formalised through a Lok Adalat, setting aside his earlier conviction.
Background of the case
The dispute dates back to 2018 when a company named Shree alleged that it had supplied hard disks to Varma’s production company. Tax invoices amounting to Rs 2,38,220 were raised between February and March 2018. The cheques issued against these invoices were dishonoured, prompting the firm to initiate legal proceedings.
During the trial, Varma denied authorising any payments or the issuance of cheques. However, a Magistrate court in Andheri convicted him in January 2025, sentencing him to three months’ simple imprisonment under Section 138 of the Negotiable Instruments Act, which deals with cheque dishonour.
Settlement and acquittal
After his conviction, Varma challenged the order before the Dindoshi Sessions Court. Initially, the court rejected his bail plea and issued a warrant for his arrest. Subsequently, Varma chose to settle the dues with the complainant company.
A Lok Adalat order confirming the payment of Rs 3 lakh was submitted to the Sessions Court. Taking note of the settlement, the court set aside the previous conviction and acquitted Varma in the matter.
Implications
The case highlights the scope for resolving cheque-bouncing disputes through Lok Adalats, providing a speedy and amicable settlement between parties. It also underscores the legal recourse available under the Negotiable Instruments Act while balancing the interests of complainants and defendants.