The following is my legally twisted perceptions in this matter.
Please write in your counter comments, point wise on the same.
1. An Car accident is a Criminal Offence, under the IPC and the MV Act.
2. It is mandatory to lodge an FIR with the Police, under the Laws.
3. By agreeing not to lodge an FIR would mean Violation of the Laws, and subsequent punishment for concealing or suppressing or destroying the facts or evidence concerning the accident.
4. An compromise or agreement in Violation of the Law, is "null & void" ab initio.
NOTE : An agreement in or for Violation of Law, is "illegal". An act / agreement which is "illegal" cannot be breached. Parties have to appear before the law with clean hands ... SC.
5. The Opposite party is mandatorily bound by law to lodge an FIR about this accident. Even for the purpose of cliaming insurance etc...
6. The accident may or could have other repercussions as far as third part liability is concerned or self injury is concerned or counter claims by the accident doer or other criminal / terrorist / drug links. Hence FIR becomes mandatory, without exceptions, under the Laws..
7. Payment by cheque for the car damages will easily come under defination of "legally enforceable debt".
8. Cheque is issued for settlement of car accident damages, which has become a liability or now say "debt". NOW settlement of liability CANNOT BE CALLED AS "SECURITY".
(please introspect the following, repeatedly)
9. Cheque is not issued as a condition for not lodging an FIR. This is no contract or agreement, which intends to suppress the law by violating mandatory provisions.
10. Lodging of mandatory FIR, does not absolve of the fact that accident did not take place (which can be proved ONLY by an lodged FIR)
11. Further lodging FIR will not mean that either of the parties can persue court proceedings on each other. It can be done or not done even after the mandaotry FIR is lodged.
Keep Smiling .... HemantAgarwal