Refund of unused mediation deposit permitted to petitioner upon failure of mediation and disposal of proceedings.

The petitioner’s wife lodged a complaint under Sections 354 and 498-A/34 of the IPC, leading to Criminal Case No. 942 of 2024.

The petitioner moved a quashing petition (CRMP No. 1764 of 2024), wherein the High Court, via interim order dated 08.07.2024, referred the matter to mediation and directed the petitioner to deposit Rs. 50,000/- at the Mediation Centre.

Although the petitioner deposited the amount and participated, the wife/complainant failed to appear, and the mediator reported a failure of mediation.

Subsequently, the High Court allowed the quashing petition on 04.08.2025.

Despite the disposal of the main case, the Mediation Centre refused to refund the deposited amount to the petitioner without a specific judicial direction.

1. Whether the petitioner is entitled to a refund of the amount deposited for mediation purposes when the mediation failed due to the non-participation of the complainant and the substantive criminal proceedings have been quashed.

The Court applied the principle of judicial equity and administrative propriety regarding court-ordered deposits.

While no specific statute was cited, the Court exercised its inherent powers to ensure that funds deposited as a condition of an interim order in a criminal miscellaneous petition (under the framework of the Cr.P.C., now BNSS) are returned to the depositor if the purpose of the deposit (mediation) remains unfulfilled and the underlying litigation has concluded.

The Court observed that the petitioner had fully complied with the interim directions dated 08.07.2024 by depositing Rs. 50,000/- and participating in the proceedings.

It noted that the mediation failed solely because of the complainant's unwillingness to participate and her failure to appear despite notice.

Since the main criminal proceedings were already quashed by the Court on 04.08.2025 and the deposited amount remained unwithdrawn and undisbursed, the Court found no legal or factual justification for the Mediation Centre to retain the funds.

The Court reasoned that a specific direction was necessary to overcome the administrative objection raised by the Mediation Centre.

It directed that upon the petitioner moving an appropriate application before the Mediation Centre, the sum of Rs. 50,000/- shall be refunded to him, provided it has not already been disbursed, in accordance with law.