Case Law Analysis
|Kerala High Court
Section 138 NI Act | Mediation Settlement Enforces Stay of Trial Until Agreed Payment Date : Kerala HC
The Kerala High Court has ruled that a valid mediation agreement under Section 138 of the Negotiable Instruments Act operates as a binding stay on criminal trial proceedings until the stipulated payment deadline is reached. This clarifies that parties cannot be forced to litigate when a mutually agreed settlement with enforceable timelines exists, reinforcing mediation as a legitimate alternative to trial in cheque dishonour cases.