Interim compensation under Section 143A may be ordered up to 20% without a detailed pre-order hearing

Section 143A of the Negotiable Instruments Act applies to complaints filed after its insertion on 01.09.2018 and permits a court to direct interim compensation up to 20% of the cheque amount where the accused does not plead guilty. The provision operates within a statutory scheme that contemplates refund with interest if the accused is later acquitted. On the stated facts, the accused had pleaded not guilty, so a direction to deposit 20% fell within the section's scope. The text also clarifies that such an order does not require a detailed hearing or a detailed speaking order before being passed.

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Issues: Whether the Magistrate was justified in directing the accused to deposit 20% of the cheque amount as interim compensation under Section 143A of the Negotiable Instruments Act, and whether the accused was entitled to a detailed hearing before such direction.

Analysis: Section 143A was inserted into the Negotiable Instruments Act with effect from 01.09.2018, and the complaint had been filed thereafter, so the provision applied to the case. The provision enables the Court to direct payment of interim compensation up to 20% of the cheque amount where the accused does not plead guilty. The provision is linked to the statutory scheme under which repayment with interest is provided if the accused is ultimately acquitted. On the admitted facts, the accused had pleaded not guilty, and the direction to deposit 20% was therefore within the scope of the provision. The order under Section 143A did not require a detailed hearing or a detailed speaking order before being passed.

Conclusion: The challenge to the interim compensation order failed, and the petition was dismissed.

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