My 2 Wheeler was solen recently by my neighbor, I filed a police complaint (FCR) , Today, the neighbor cam for settlement and wanted me to take the case back. Police interrogated him yesterday, also they might have asked them to come to me for compromise! When he visited me, I asked for 1: My 2 wheeler back 2: Compensation for mental agony and loss of business He agreed for both. I am expecting police to come in evening for case closure. Question: 1: Do I need to document it ( compensation) ? , if yes, How Do I document it, Like any stamp paper, or Police stamp/signature ? 2: can I take any Post dated cheque/Cash etc ?
1. Since, you are going to compromise with him then there is no requirement for the document for seeking compensation
2. Better take cash
- If the cheque will bounce then you will have to file court cases for recovery of the amount after engaging a lawyer and it may take long time.
1. If he has agreed to pay the compensation towards the mental agony, then you can get it in writing from him that he is paying the compensation amount for causing you mental agony and let him sign it, this may be prepared in duplicate, and in the second copy you acknowledge the receipt and give it back to him. if you have anyone known to both then get his signature as a witness.
2. You accept the same by cash or by digital payment.
obtain letter from neigbour that he has paid x amount by cash or demand draft as compensation in full and final settlement of your claim and has also returned the 2 wheeler stolen by him . you have no objection to closure of the case
Thanks Kalaiselvan, A quick follow up question: 1: Can it be on a plain paper or any stamp paper ? 2: Does it need to be signed by Police while they ask me for closure ?
if neighbour has letter head then it should on his letter head . other wise plain paper should suffice
2) it should be addressed to you
3) it should bear date of letter
4) signed by neighbour
1. It should be on a stamp paper , at least of Rs.50/-
2. Take two witnesses signature in the presence of police
1. It can be written on a plain paper also, it is just a record in order to avoid problem s in future, if any.
2. Not necessary, it is between you and the other guy alone, as far as the police is concerned they will close the complaint on the basis of the compromise settlement between you both
1. It is a case of theft for which police case has started. How come the thief ask for compromise? The police should start the case and recover your two wheeler. However, to avoid hassles, you can ask him to return the two wheeler and also the compensation amount. Get his letter acknowledging the theft and returning vehicle for which you need not sign anywhere.
2. Take cash but do not write anywhere that you have collected compensation as otherwise it might be construed that after filing the complaint and putting him in distress you are withdrawing it by collecting money in the garb of compensation.
1. You put the matter of theft of your vehicle only in writing on plain paper to be signed by the thief. that will be enough.
2. Thereafter you may withdraw your complaint.
1. Do not get any document admitting receipt of any money , even in the form of compensation.
2. Cash is only option.
Yes it’s legal to demand the same
Yes, it is legal to demand compensation for an out-of-court settlement in India. This is a common practice in resolving disputes outside of the court system.
Here's a breakdown of the legal aspects:
Contractual Freedom: The Indian Contract Act allows parties involved in a dispute to enter into a settlement agreement. This agreement can involve one party offering compensation to the other in exchange for resolving the dispute and avoiding litigation.
Mutual Agreement: The key element is that the compensation amount must be agreed upon by both parties willingly. There should be no coercion or undue influence.
Settlement Documentation: It's advisable to have a lawyer draft a formal settlement agreement outlining the terms of the settlement, including the compensation amount and how it will be paid. This document serves as legal proof of the agreement.
Benefits of Out-of-Court Settlements:
Faster Resolution: Settling disputes outside of court can be significantly faster and less expensive compared to a full-blown lawsuit.
Confidentiality: The terms of the settlement can be kept confidential, unlike court proceedings which are generally public.
Control Over Outcome: Both parties have more control over the resolution compared to an uncertain court verdict.
Seeking Legal Advice:
While demanding compensation for an out-of-court settlement is legal, it's always recommended to consult a lawyer specializing in the specific area of your dispute (contract disputes, property disputes etc.). They can advise on:
Reasonable Compensation: What constitutes a fair compensation amount in your situation.
Settlement Agreement: Drafting a watertight settlement agreement that protects your interests.
Negotiation Strategy: Negotiating effectively to reach a favorable agreement.
