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 Artic

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