Interim compensation under cheque dishonour law can rest on accused conduct without a full merits inquiry at that stage.

Section 143-A of the Negotiable Instruments Act, 1881 gives the trial court discretion to award interim compensation up to twenty per cent of the cheque amount in an appropriate case, mainly to deter delay and protect the payee from dilatory conduct. At that stage, the court need not conduct a detailed merits inquiry into the accused's defence, such as claims that the cheque was issued as security or was blank, because that would amount to a mini trial and defeat the provision's object. On the facts, the accused's conduct and repeated exemptions justified the exercise of discretion, so the challenge under Section 482 CrPC failed and the award was upheld.

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Issues: Whether the orders directing payment of interim compensation under Section 143-A of the Negotiable Instruments Act, 1881, as affirmed in revision, called for interference in a petition under Section 482 of the Code of Criminal Procedure, 1973.

Analysis: Section 143-A confers a discretion on the trial court to award interim compensation up to twenty per cent of the cheque amount in an appropriate case. The provision is intended to deter delay in cheque dishonour proceedings and to protect the payee from dilatory conduct by the drawer. At the stage of considering interim compensation, the court is not required to undertake a detailed examination of the defence on merits, such as the plea that the cheque was issued as security or was a blank cheque, because that would amount to a mini trial and would defeat the object of the provision. On the facts, repeated exemptions and the course of proceedings justified the exercise of discretion by the courts below.

Conclusion: The challenge to the grant of interim compensation failed. The order awarding twenty per cent interim compensation and its affirmation in revision were upheld.

Ratio Decidendi: While considering interim compensation under Section 143-A of the Negotiable Instruments Act, 1881, the court may exercise discretion on the basis of the conduct of the accused and is not required to adjudicate the defence on merits at that stage.

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