Court Denies Rajpal Yadav Additional Time to Settle Cheque Bounce Dues

The CSR Journal Magazine

The Delhi High Court has denied a request by Bollywood actor Rajpal Yadav for extra time to settle his dues in a cheque bounce case. During a hearing on February 1, 2026, Justice Swarana Kanta Sharma expressed strong disapproval of Yadav’s inconsistent submissions and repeated delays, stating unequivocally, “No means no.” The judge reserved the court’s decision on the matter following this refusal.

During the dictionary understanding session, Justice Sharma noted the contradictory positions presented by both Yadav and his legal counsel regarding payment intentions. She remarked, “Never think the judge is weak if the judge is nice to you,” signalling her dissatisfaction with the lack of clarity in their statements.

Yadav’s counsel argued for a 30-day extension to arrange the payment of Rs 6 crore, which the court firmly rejected. The judge emphasised that the inconsistency in Yadav’s declarations contradicted his alleged willingness to pay, leaving confusion about the true intentions behind the payment discussions.

Background of the Case and Imprisonment

The legal matter stems from a complaint filed by Murli Projects Private Limited under Section 138 of the Negotiable Instruments Act regarding dishonoured cheques. In May 2025, a sessions court convicted Yadav and sentenced him to six months in prison for the offence.

Following his conviction, the High Court suspended Yadav’s sentence after assurances were made by his counsel that the dispute would be resolved. The case was subsequently referred to the Delhi High Court Mediation Centre. However, despite multiple adjournments and commitments from Yadav, he failed to deposit the amounts he initially pledged, including an instalment of Rs 2.5 crore.

In February 2026, the court mandated Yadav to surrender due to his non-compliance. Upon rejecting his plea for additional time, Yadav surrendered on February 5, 2026, but was granted interim suspension of his sentence after he deposited Rs 1.5 crore with the complainant.

Complainant’s Stand on Financial Liability

Representing the complainant, advocate Avneet Singh Sikka asserted that Yadav’s imprisonment did not absolve him of his financial responsibilities. Sikka stated that the completion of Yadav’s sentence does not extinguish his liability and highlighted that the actor had acknowledged owing a sum of Rs 10 crore.

Sikka explained that the proceedings were initiated due to non-payment of dues, revealing that approximately Rs 7.75 crore remained outstanding, despite earlier payments totalling around Rs 2 crore before the trial court. This emphasised the ongoing nature of the financial dispute between the parties involved.

Throughout these proceedings, both parties attempted to explore a potential settlement. The court had indicated it might be possible to resolve the conflict quickly if Yadav paid the outstanding Rs 6 crore. The complainant had shown a willingness to consider a settlement, presuming timely payment.

Progress on Settlement Negotiations

During the hearing, Yadav appeared via video conference, expressing his readiness to adhere to any payment directives. He also cited significant financial distress, claiming to have sold five flats and incurred heavy losses. However, his request for an additional 30 days to arrange the required funds was again turned down by the judge.

As no immediate resolution was reached during the discussions, the High Court subsequently reserved its judgement on the case. The court’s clear stance reflects the serious implications surrounding non-compliance with financial obligations and reinforces the legal expectations placed on Yadav in this challenging situation.

The outcome of this case, alongside Yadav’s financial liabilities, continues to develop as the judicial process progresses. The court’s decision is expected to come in the near future, as both parties await clarity on the resolution of this longstanding issue.

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