2021 (6) TMI 1113 - HC - Indian Laws

Court upholds 20% cheque deposit as interim compensation. Provision temporary, repayable if acquitted. Petition dismissed.

The court upheld the validity of the Magistrate's decision to direct the petitioner to deposit 20% of the cheque amount as interim compensation under ... Dishonor of Cheque - direction to petitioner to deposit 20% of the cheque amount in accordance with Section 143A of NI Act - HELD THAT:- Section 143A was inserted in the Negotiable Instruments Act by Act No.20 of 2018 with effect from 01.09.2018. The complaint was filed on 11.10.2019. Therefore the amendment is very much applicable to the present case. According to Section 143A(a), if the accused does not plead guilty, the Court may pass an order directing him to pay interim compensation to the complainant and this amount shall not exceed 20% of the cheque amount. Sub-section(4) of Section 143 makes it very clear that if the accused is acquitted, the Court will direct the complainant to re-pay the amount with interest. Therefore it is very clear from the language of the Section that the accused may be directed to pay interim compensation if he pleads not guilty. In the case on hand, having noticed that the petitioner pleaded not guilty, the Court below directed him to pay interim compensation to the complainant. Petition is dismissed. Issues:1. Interpretation of Section 143A of the Negotiable Instruments Act.2. Whether the Magistrate should have heard the petitioner before passing the order.3. Applicability of Section 143A to the case filed before the amendment.4. Validity of the order directing the petitioner to deposit 20% of the cheque amount.Interpretation of Section 143A of the Negotiable Instruments Act:The judgment addressed the interpretation of Section 143A of the Negotiable Instruments Act. The petitioner argued that the provision is not mandatory due to the use of the word 'may.' However, the court held that the provision is applicable and clarified that if the accused pleads not guilty, the court may direct the payment of interim compensation not exceeding 20% of the cheque amount. The court emphasized that if the accused is acquitted, the complainant must repay the amount with interest, indicating the temporary nature of the compensation order.Magistrate's Hearing Before Passing Order:The petitioner contended that the Magistrate should have heard him before directing the deposit of 20% of the cheque amount. However, the court disagreed, stating that the accused need not be heard in detail before the order under Section 143A is passed. The court highlighted that the order need not be detailed and upheld the validity of the Magistrate's decision to direct the petitioner to pay interim compensation to the complainant.Applicability of Section 143A to the Case:The court clarified the applicability of Section 143A to the case, noting that the provision was inserted in the Act in 2018, and the complaint in this case was filed in 2019. The court affirmed that the amendment is applicable to the present case, reinforcing the validity of the Magistrate's direction to deposit 20% of the cheque amount based on Section 143A.Validity of the Order Directing Deposit:Ultimately, the court dismissed the petition under Section 482 of Cr.P.C., concluding that there was no infirmity in the impugned order. The court emphasized that since the petitioner pleaded not guilty, the Magistrate's decision to direct the payment of interim compensation was in line with the provisions of Section 143A. Additionally, the court mentioned that a related application did not survive for consideration, further solidifying the dismissal of the petition.