Actor Rajpal Yadav has suffered a setback in a long-pending cheque bounce case after the Delhi High Court refused to grant further relief and upheld the conviction imposed by the trial court. The Court observed that the actor failed to honour repeated commitments regarding repayment of the outstanding amount in the financial dispute linked to a ₹5 crore loan.
The matter relates to the production of the 2010 film Ata Pata Laapata. According to the allegations, Rajpal Yadav had borrowed ₹5 crore from Murli Projects Private Limited for financing the film. After the film did not perform commercially as expected, the repayment dispute arose, leading to multiple cheque dishonour cases.
The proceedings were initiated under Section 138 of the Negotiable Instruments Act, 1881, after cheques issued towards repayment were allegedly dishonoured. Seven separate cases were filed in connection with the alleged defaults.
Trial Court Conviction and Legal Proceedings
In 2018, the trial court sentenced Rajpal Yadav and his wife to six months’ imprisonment in the cheque bounce cases. The conviction was later upheld by the sessions court.
The matter subsequently reached the Delhi High Court, which granted interim protection and provided opportunities for repayment of the outstanding dues. The Court directed the actor to make efforts to clear the amount and resolve the dispute.
However, the High Court noted that despite multiple opportunities and assurances regarding payment, the dues were not cleared as promised.
Court Withdraws Interim Relief
The Delhi High Court observed that the conduct of the accused during the proceedings was not satisfactory and that repeated commitments for repayment were not fulfilled. Consequently, the Court withdrew the interim relief earlier granted and directed Rajpal Yadav to surrender.
Following the order, the actor surrendered and was sent to judicial custody. He was later granted bail on February 16, 2026.
With the High Court upholding the conviction, the legal proceedings in the matter will continue according to law.
Cheque Bounce Case Highlights Financial Obligations
The case highlights the legal consequences associated with dishonoured cheques under the Negotiable Instruments Act. Under Section 138, issuing a cheque that is dishonoured due to insufficient funds and failing to make payment within the prescribed period after receiving notice can lead to criminal proceedings.
Legal experts note that individuals and businesses must ensure proper financial arrangements before issuing cheques and should address payment disputes promptly to avoid legal consequences.
The final outcome of the matter will depend on further proceedings before the competent court.
