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Issues: (i) Whether Section 143A of the Negotiable Instruments Act applies to pending complaints under Section 138; (ii) Whether an order directing interim compensation under Section 143A must contain reasons.
Issue (i): Whether Section 143A of the Negotiable Instruments Act applies to pending complaints under Section 138.
Analysis: The provision was inserted to advance the object of expeditious and effective remedy in cheque dishonour cases. A purposive construction was adopted, drawing support from the reasoning on the analogous amendment in Section 148 of the same Act. On that approach, the amendment was treated as applicable to pending proceedings and not confined only to complaints instituted after the amendment.
Conclusion: Section 143A applies to pending proceedings under Section 138.
Issue (ii): Whether an order directing interim compensation under Section 143A must contain reasons.
Analysis: The power under Section 143A(1) is discretionary because the statute uses the word "may". A discretionary order affecting the accused must disclose why the power was invoked in the particular case. An order that merely directs deposit of interim compensation without reasons is vulnerable to judicial review and cannot be sustained by supplementing reasons later.
Conclusion: Yes, reasons are mandatory for an order under Section 143A directing interim compensation.
Final Conclusion: The impugned order directing payment of interim compensation was unsustainable for want of reasons, and the petitions were allowed with consequential directions to complete the trial expeditiously.
Ratio Decidendi: An order under Section 143A of the Negotiable Instruments Act directing interim compensation is discretionary and must be supported by recorded reasons, and the amendment applies to pending cheque dishonour proceedings.