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Supreme Court Orders Passport Release and Mediation in Rajpal Yadav Cheque-Bounce Dispute

By Drooid · · How we work

Core Decision

  • On October 15, a Supreme Court bench directed the trial court to release actor Rajpal Yadav’s passport for travel abroad, subject to conditions set by the trial court.
  • The bench also referred the cheque-bounce dispute with M/s Murli Projects Pvt Ltd to mediation, appointing a sole mediator to seek an amicable settlement.

Background & Context

  • In 2010, Yadav received Rs 5 crore from M/s Murli Projects to finance his directorial debut *Ata Pata Laapata*.
  • A 2012 agreement required Yadav, his wife Radha Rajpal Yadav, and their company to repay roughly Rs 11 crore with interest.
  • In 2013 Yadav issued seven cheques of Rs 1.05 crore each; all were dishonoured, leading to cases under the Negotiable Instruments Act.

Timeline

  • July 10 – Delhi High Court upheld Yadav’s conviction and imposed three-month imprisonment in each case.
  • September 8 – Supreme Court issued notice on Yadav’s plea, linking exemption from surrender to a Rs 5 crore deposit.
  • September 15 – Court extended exemption until October 5.
  • October 7 – Yadav proposed selling ancestral property; the Court noted a Rs 1.15 crore payment.
  • October 13 – Counsel reported the remaining Rs 85 lakh was deposited, completing Rs 2 crore.
  • October 15 – Supreme Court ordered passport release and mediation.
  • January 12 2026 – Yadav surrendered after a non-bailable warrant.
  • June 26 2026 – Yadav’s film *Welcome to the Jungle* released.

Data & Statistics

  • Agreed repayment: ~Rs 11 crore.
  • Cheques issued: seven, each Rs 1.05 crore.
  • High Court directed payment of >Rs 1 crore per case; Rs 2 crore already paid to be adjusted.
  • Fine for wife: ~Rs 5.5 lakh per case; default leads to three-month imprisonment.

Official Statements & Responses

  • The Court will appoint a sole mediator and instructed both parties to contact the mediator and fix a date, with proceedings possible in person or online.
  • Advocate Vikrant Yadav, representing the actor, said travel to Canada was required for a professional assignment that could help meet Yadav’s liabilities.
  • The Court emphasized that passport release is conditional on compliance with any restrictions imposed by the trial court and requires the actor to inform the trial court upon return.

Verbatim Quotes

  • “For a very long time, I had been dreaming about this. We had a film called Jungle , which began production in 1999 and was released in 2000. There was a dialogue in it, 'Now it's my turn.'” — Rajpal Yadav
  • “Going by the issues briefly raised on behalf of the parties, it seems that the matter can be amicably resolved through mediation. Consequently, the parties have agreed to mediation before the Supreme Court Mediation Centre.” — The Court

Why It Matters

  • The passport order enables Yadav to fulfill a film-shoot commitment in Canada, potentially generating income to meet outstanding liabilities.
  • Referral to mediation shifts the dispute from prolonged litigation to a negotiated settlement, reflecting the Supreme Court’s preference for alternative dispute resolution in commercial matters.

What’s Next

  • The mediator will schedule a mediation session; parties may appear physically or via video conference.
  • The trial court will set specific conditions for passport use and monitor compliance after Yadav’s return.