The Supreme Court on Thursday, 15 October 2026, referred cheque dishonour cases against actor-comedian Rajpal Yadav and his wife Radha Yadav to mediation, directing both parties to explore an amicable settlement over the outstanding dues owed to complainant Murli Projects Private Limited. The order came after Yadav's counsel confirmed that the remaining ₹85 lakh had been deposited with the apex court's registry on 13 October, bringing the total deposit to ₹2 crore.

Key Developments in Court

A bench comprising Chief Justice of India (CJI) Sanjiv Khanna and Justice Joymalya Bagchi passed the mediation order after both sides — counsel for Yadav and for Murli Projects Private Limited — agreed to the proposal. The bench recorded: 'It seems that the matter can be amicably resolved through mediation and consequently, the parties are referred to mediation before the Supreme Court Mediation Centre.'

The court also permitted Yadav to seek the release of his passport for professional travel abroad, subject to conditions previously imposed by the trial court.

Background: How the Case Reached This Stage

The Supreme Court is hearing petitions filed by Yadav and his wife challenging a Delhi High Court judgment dated 10 July, which upheld their conviction in seven cheque dishonour cases under the Negotiable Instruments Act. The High Court had reduced Yadav's sentence from six months to three months' simple imprisonment in each of the seven cases, directing the sentences to run concurrently. It also reduced the fine from ₹1.60 crore to ₹1.05 crore per case, taking into account payments already made during the pendency of proceedings.

Before the Supreme Court, Yadav and his wife have argued that a subsequent consent agreement between the parties was not adequately considered by the lower courts. They have relied on the apex court's ruling in M/s Gimpex Private Limited v. Manoj Goel, contending that such a subsequent agreement should have extinguished the original complaint proceedings.

The October 7 Order and Rising Pressure

The latest referral follows an order dated 7 October, in which the CJI-led bench had directed Yadav to deposit ₹1.15 crore immediately, with the remaining ₹85 lakh to be arranged through the prospective sale of his ancestral property. At that hearing, the bench had expressed displeasure over Yadav's repeated failure to comply with earlier directions and indicated it was inclined to enhance his three-month imprisonment sentence to two years. That stern warning appeared to catalyse compliance — the full ₹2 crore was deposited within the week. The court had also noted that Yadav had earlier agreed to sell his ancestral property to arrange funds, and emphasised that an amicable resolution should be attempted before the matter was taken to its logical legal conclusion.

What Happens Next

Both parties are now required to approach the Supreme Court Mediation Centre with an open mind and make a genuine effort to settle the outstanding dispute. Notably, mediation at this stage does not suspend the underlying conviction; it seeks to resolve the financial dimension of the case. Should mediation fail, the Supreme Court proceedings on the conviction challenge will resume. The outcome of the mediation could significantly influence the final sentencing and fine that Yadav and his wife ultimately face.