Enforceability of Interim Compensation under Negotiable Instrument Act affirmed.

The court held that the interim compensation ordered under Section 143A of the Negotiable Instrument Act is enforceable as a public demand under the Bihar & Orissa Public Demands Recovery Act. The petitioner's argument challenging the applicability of the Recovery Act was rejected, affirming the lower court's order for recovery of interim compensation as land revenue. The petition was disposed of with liberty to explore alternative remedies, and parties were encouraged to consider mediation or conciliation.

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Issues Involved:
1. Whether an order for payment of interim compensation under the Negotiable Instrument Act can be enforceable under the Bihar & Orissa Public Demands Recovery Act, 1914 as a public demandRs.

Issue-wise Detailed Analysis:

1. Enforceability of Interim Compensation under the Recovery Act:

Facts:
The private respondent, a trader, delivered goods worth Rs.1,26,75,600/- to the petitioner. The petitioner issued a cheque which was dishonoured. Consequently, a complaint was filed under Section 138 of the Negotiable Instrument Act, 1881 (NI Act). The Additional Chief Judicial Magistrate ordered interim compensation of Rs.25,00,000/- under Section 143A of the NI Act. When the petitioner failed to pay, a warrant under Section 421(1)(b) of the Code of Criminal Procedure (Cr.P.C.) was issued to the Collector for recovery. The Collector forwarded the order to the District Certificate Officer, who issued a notice for payment under the Bihar & Orissa Public Demands Recovery Act, 1914 (Recovery Act).

Petitioner's Argument:
The petitioner contended that the Recovery Act does not apply to the present case, asserting a jurisdictional vice.

Court's Analysis:
The court referred to the relevant provisions of the NI Act, Cr.P.C., and the Recovery Act:

- Section 143A of the NI Act: Allows the court to order interim compensation up to 20% of the cheque amount, recoverable as a fine under Section 421 of Cr.P.C.
- Section 421 of Cr.P.C.: Authorizes the issuance of a warrant to the Collector to realize the amount as arrears of land revenue.
- Section 3 and Article 3 of Schedule I of the Recovery Act: Define "public demand" to include any money recoverable as arrears of land revenue.

The court cited Surinder Singh Deswal v. Virender Gandhi (2019) and G.J. Raja v. Tejraj Surana (2019) to affirm the prospective application of Section 143A. It emphasized that the interim compensation under Section 143A, recoverable as a fine, falls within the definition of "public demand" under the Recovery Act.

Conclusion:
The court concluded that the interim compensation ordered under Section 143A of the NI Act is enforceable as a public demand under the Recovery Act. The petitioner's argument was negated, and the court upheld the lower court's order for recovery of interim compensation as land revenue.

Disposition:
The petition was disposed of with liberty to the petitioner to avail alternative remedies under the law. The court encouraged the parties to resolve the matter through mediation or conciliation. Interlocutory applications, if any, were also disposed of.

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