VALARMATHI OIL INDUSTRIES Vs. SARADHI GINNING FACTORY

JUDGEMENT

(1.) THIS revision petition has been preferred against the order, dated 14. 11. 2007 made in C. M. P. No. 4686 of 2007 in C. A. No. 167 of 2007 on the file of the Principal District and sessions Judge, Salem.

(2.) IT is an admitted fact that the case in c. C. No. 308 of 2006 was taken on file by the learned Judicial Magistrate No. I, Salem on the complaint given by the respondent herein that the cheque was issued by the second petitioner herein on behalf of the first petitioner as partner of the firm, however, the same was dishonoured by the bank, due to insufficient funds. According to the respondent, after issuance of the legal notice to the petitioner, the complaint was given under Section 138 of the Negotiable Instruments Act against the petitioners. During the pendency of the criminal case, at request of both the parties, the matter was referred to Lok Adalat for settlement. It is seen that the matter was referred to Lok Adalat under section 20 (1) (i) (b), 20 (1) (ii) of Legal Services Authorities Act (Act 39/1987 ).

(3.) BOTH the parties were present before lok Adalat and as per the award, they agreed for the settlement and accordingly, the petitioner/accused, agreed to pay rs. 3,75,000/- (Rupees three lakhs and seventy five thousand only) to the respondent herein on or before 03. 09. 2007. It was signed by the respondent/complainant, petitioners/accused and their respective counsel. In view of the compromise arrived at between both the parties, the amount payable by the accused/respondent was fixed at rs. 3,75,000/- towards full quit of the claim and that the petitioners herein agreed to pay the abovesaid amount on or before 03. 09. 2007 and accordingly, the award was passed and placed before the Judicial Magistrate Court for further orders.