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Supreme Court lets Rajpal Yadav settle cheque‑bounce dues by selling ancestral property

Reported by Ishita Mukherjee (Staff Writer) · Indian Express - Entertainment ·

Verified — Confirmed by a second source: NDTV - Entertainment

Confirmed by a second source: NDTV - Entertainment

Important
Supreme Court lets Rajpal Yadav settle cheque‑bounce dues by selling ancestral propertyPhoto: Wikimedia Commons

Supreme Court on Oct 7 gave actor Rajpal Yadav a break by accepting his plan to sell his ancestral property to clear pending cheque‑bounce dues. The court noted that Yadav produced demand drafts worth Rs 1.15 crore as ordered in its earlier notice. A bench of Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice V Mohana heard that a prospective buyer will deposit Rs 85 lakh in the court registry by Oct 12. Justice Bagchi warned that the court was not impressed by Yadav’s conduct and was only granting relief to protect the complainant’s interest. Yadav, who has acted in about 200‑250 films, told the bench that he has incurred losses of Rs 200‑250 crore in the past 13 years, including a Rs 17 crore loss on his directorial debut Ata Pata Laapata. He said a press conference halted his film, which was meant for 1,200 theatres but never released. The chief justice suggested he make a new movie, even joking about casting lawyer‑actors. The dispute stems from a 2010 agreement where Yadav received Rs 5 crore to fund Ata Pata Laapata. In 2012 the parties agreed that Yadav, his wife and their company would repay about Rs 11 crore with interest. In 2013 Yadav issued seven cheques of Rs 1.05 crore each, all of which bounced. ## Context The case highlights how unpaid financial commitments can lead to prolonged court battles for film personalities, and shows the Supreme Court’s willingness to allow asset‑sale settlements when cash payment is unavailable.

ExplainerWhy this matters

What Happened

The Supreme Court accepted Rajpal Yadav’s offer to sell his ancestral property after he supplied Rs 1.15 crore in demand drafts and a buyer pledged Rs 85 lakh.

Why It Matters

The decision shows that the court can permit asset‑sale arrangements when a debtor cannot pay the full cash amount, offering a practical way to settle long‑running cheque‑bounce cases. For Bollywood personalities, it underscores the financial risk of borrowing for film projects and the legal consequences of bounced cheques.

What Happens Next

The buyer must deposit the Rs 85 lakh by the court‑set deadline; once done, the court will issue conditional relief on a day‑to‑day basis. If the payment is made, Yadav’s remaining liability may be reduced, but failure could lead to further enforcement actions, possibly including attachment of his remaining assets.

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