The Supreme Court on October 15, 2026, referred Bollywood actor Rajpal Yadav’s cheque dishonour dispute to mediation after he deposited ₹2 crore with the Court Registry towards the outstanding dues. A Bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi directed both sides to explore an amicable settlement of the remaining amount.
Background
The dispute arose from approximately ₹5 crore received by Yadav and his wife from Murli Projects Private Limited in connection with his 2012 film Ata Pata Laapata. Following disagreements over repayment arrangements and the dishonour of cheques, criminal complaints were initiated under Section 138 of the Negotiable Instruments Act, 1881.
In May 2024, a sessions court convicted Yadav and sentenced him to imprisonment. The sentence was subsequently suspended by the Delhi High Court, subject to payment-related undertakings. After repeated defaults, the High Court directed him to surrender. Yadav later challenged the proceedings before the Supreme Court.
During the hearing, the Bench noted that Yadav had arranged the ₹2 crore deposit and had proposed selling his ancestral property to pay the outstanding amount. The Court encouraged both parties to negotiate rather than prolong the dispute.
"The Bench noted that Yadav had reached a point where he was considering selling his ancestral property to resolve the dispute. It observed that the case had already been decided by lower courts and encouraged both parties to pursue an amicable settlement, while leaving open the possibility of examining the merits if required."
The Court considered mediation appropriate in view of the issues raised by both sides. The parties agreed to approach the Supreme Court Mediation Centre and attempt a settlement.
The Supreme Court referred the dispute concerning the remaining dues to mediation and asked both parties to participate with an open mind.
It also permitted the release of Yadav’s passport for professional travel abroad, subject to conditions imposed by the trial court and compliance with its directions.
