mediator in 138 cases

There are few 138 cases against a director of a company which is finacially very bad shape. Director is convicted in few of the cases & few cases are pending. He is under imprisonment for more than 3 month. For want of money director has not paid any money to complaint. During the trials it was also observed that some people had lodged false cases which were dismissed. 

Now the megistrate has approached him asking him if he needs mediator appointed in his cases. It seems that lawyer of compliant has approached megistrate for the same after realising that if director completes his imprisonment term he can walk free without paying money. Complaints ( basically depositors) can lodge 420 cases against him but he has enough evidences to protect himself under 420.

My questions are. What is role of mediator?

By looking at above scinario is there any point going to mediator? ( Director says that he does not want to dupe any body but due to bad business environment he is not able to pay now but wants to pay back to all)

Is the agrement reached through mediator legally acceptable?

What is the cost of mediation process?

Can director insist during mediation to withdraw all pending cases against him & not to file fresh cases?

Can he say that he has already served almost 60 - 70% of his imprisonment term  so he will pay only proportionate amount?

I know have asked too many questions but can anybody reply to these questions.



NI 138 is a compoundable offence and process of mediation is there to resolve the can put your terms and they there's so if you both mutually agree then the dispute shall be resolved.The govenment shall bear the cost of mediation you don't have to worry about it,you can go for mediation.



It is better to go for mediation.   if the director is out of jail, he can make efforts to make money and clear your debts..

you can arrive at the terms & conditiions favourable to you and giving him a breath to start afresh...

There is no rule that if he undergoes imprisonment, he does not have to depends on your order


Dear Nitish/Anamika,

Thanks for your reply.






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