SC Deletes Damodar Prabhu Cost: No Mandatory Levy When Parties Settle in 138 NI Act Case

Rajeev Khandelwal Vs State of Maharashtra & Anr (Supreme Court of India) The appellant was convicted u/s 138 NI Act. His appeal before Sessions Court failed. In revision before the Bombay High Court, parties arrived at a settlement & the complainant agreed to compound the offence. The High Court accepted compounding but, relying upon Damodar S. Prabhu Vs Sayed Babalal H (2010) 5 SCC 663, imposed “cost” to be deposited with the State Legal Services Authority. The appellant challenged only the imposition of such cost. It was argued that Damodar Prabhu invoked Article 142 & theref...