High Court affirms interim compensation order in Section 138 case, dismisses quash application The High Court upheld the trial court's decision to order the deposit of 20% of the cheque amount as interim compensation in a case under section 138 of ...
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High Court affirms interim compensation order in Section 138 case, dismisses quash application
The High Court upheld the trial court's decision to order the deposit of 20% of the cheque amount as interim compensation in a case under section 138 of the Negotiable Instrument Act. The Court found that the trial court had provided reasons for the interim compensation order, and after considering the pending application for two years, concluded that the order was not illegal. The Court dismissed the application seeking to quash the order, stating that no interference was necessary.
Issues involved: The judgment involves the quashing of an order passed under section 138 of the Negotiable Instrument Act, specifically focusing on the grant of interim compensation and the discretion of the trial court in such matters.
Interim Compensation and Discretion of Trial Court: The applicant filed a 482 Cr.P.C. application seeking to quash the order for depositing 20% of the cheque amount as interim compensation within two months, as directed by the trial court under section 143(A) of the Negotiable Instrument Act. The applicant relied on a judgment from the High Court of Madras to argue that the trial court has discretion in ordering interim compensation and must provide reasons for such a decision. The applicant contested the lack of reasons provided by the trial court for directing the payment of interim compensation.
Contentions and Observations: The learned counsel for the applicant argued against the order, while the learned A.G.A. opposed the contention. The Court, upon perusal of Section 143(A) and the order dated 31.05.2023, found that the trial court had assigned reasons for granting interim compensation to the opposite party. The Court noted that the application under section 138 of the Negotiable Instrument Act had been pending for two years and concluded that there was no illegality in the order. The Court upheld the decision, stating that no interference was warranted and dismissed the 482 application with the above observation.
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