The Delhi High Court on Thursday reserved its verdict in a cheque bounce case involving actor Rajpal Yadav, who was briefly lodged in Tihar Jail earlier this year in connection with the matter. The case was heard by Justice Swarana Kanta Sharma, who raised concerns over inconsistencies in the actor’s position on repaying the outstanding amount. During the hearing, the court observed, “I am not getting my answers. The undertaking said something else, and now you are saying something else.”

Representing the complainant, advocate Avneet Singh Sikka argued that Rajpal Yadav had already accepted his conviction and could not now avoid liability. He pointed out that a revision plea filed in 2024 came with an unexplained delay of 1,894 days and did not justify condonation. He also maintained that serving a sentence does not extinguish financial responsibility, adding that repeated assurances of repayment had not been honoured, prompting action under the Negotiable Instruments Act.

The court explored the possibility of a negotiated resolution and asked both sides to consider a settlement. The complainant indicated willingness to accept Rs 6 crore as full and final payment. Rajpal Yadav, however, resisted the proposal. Appearing via video conference, he told the court he had already endured significant financial strain, claiming he sold five flats and had made partial payments. He stated, “I am not emotional, send me to jail five more times.”

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Attempting to move the matter forward, the court suggested a structured payment plan of Rs 3 crore within a stipulated period, clarifying that it was only a facilitative measure. The effort did not yield agreement. The judge also expressed displeasure at the conduct of the proceedings, remarking, “Never think the judge weak if the judge is nice to you,” and noted that judicial time was being lost.

The dispute dates back to 2010, when Rajpal Yadav borrowed Rs 5 crore from Murali Projects Pvt Ltd to finance his directorial venture Ata Pata Laapata. The film underperformed, leading to losses and a prolonged financial dispute. In 2018, a trial court convicted him under cheque dishonour provisions, sentencing him to six months in jail, a ruling later upheld in 2019. The liability has since escalated to nearly Rs 9 crore.

The High Court had earlier suspended his sentence after assurances that the dispute would be resolved, even referring the matter to mediation. However, the court noted that commitments were repeatedly unmet, including a proposed installment payment of Rs 2.5 crore. In February 2026, citing non-compliance, the court directed Rajpal Yadav to surrender and declined his request for additional time. He surrendered on February 5 and remained in custody until securing interim relief after depositing Rs 1.5 crore.