A sessions court in Mumbai has acquitted filmmaker Ram Gopal Varma in a cheque-bouncing case after he reached a settlement with the complainant, thereby overturning an earlier conviction. The case, which dates back to 2018, involved a complaint filed by a company named Shree, which alleged that it had supplied hard disks to Varma’s production house.
According to the complainant’s lawyers, Alok Kumar Singh and Rajesh Patel, tax invoices amounting to ₹2,38,220 were raised between February and March 2018. However, the cheques issued by Varma’s company against these invoices were dishonoured. The firm subsequently initiated legal proceedings under Section 138 of the Negotiable Instruments Act, which addresses cheque dishonour offences.
In January this year, a Magistrate's court in Andheri convicted Varma and sentenced him to three months of simple imprisonment. The court found that documentary evidence, such as invoices and communications, supported the complainant’s case, even though Varma denied authorising the issuance of any cheques.
Following his conviction, Varma approached the Dindoshi Sessions Court to challenge the order. Initially, the court rejected his bail plea and even issued a warrant for his arrest. Faced with mounting legal pressure, Varma chose to settle the matter by paying ₹3 lakh to the complainant. The dispute was formally resolved through the Lok Adalat, and an order confirming the payment was placed before the court.
Taking the settlement into account, the Sessions Court set aside the conviction and acquitted Varma, bringing an end to the seven-year-old legal battle. The outcome underscores how Lok Adalat settlements often provide a quicker and more pragmatic resolution to commercial disputes compared to prolonged litigation.
