Discretionary interim compensation under the Negotiable Instruments Act requires prima facie assessment and separate consideration of quantum.

Section 143A of the Negotiable Instruments Act confers a discretionary power to award interim compensation, requiring a prima facie assessment of the complainant's case, the accused's defence, the transaction, and surrounding circumstances before relief is granted. Where the Magistrate has exercised that discretion on relevant material, revisional interference is not justified merely because another view is possible. Any order granting interim compensation must also independently consider the quantum on relevant factors; directing the maximum percentage without such consideration is legally infirm. The writ petition succeeded and the Magistrate's refusal was restored.

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Issues: (i) Whether the revisional court was justified in interfering with the Magistrate's discretionary refusal to grant interim compensation under section 143A of the Negotiable Instruments Act, 1881. (ii) Whether the order directing interim compensation was sustainable when it did not consider the quantum of compensation on relevant factors.

Issue (i): Whether the revisional court was justified in interfering with the Magistrate's discretionary refusal to grant interim compensation under section 143A of the Negotiable Instruments Act, 1881.

Analysis: The power under section 143A is discretionary and not mandatory. A court dealing with such an must prima facie assess the complainant's case, the defence raised by the accused, the nature of the transaction, the surrounding circumstances, and other relevant factors before deciding whether interim compensation should be awarded. Where the Magistrate has exercised discretion on relevant material, revisional interference is not warranted merely because another view is possible.

Conclusion: The revisional court was not justified in interfering with the Magistrate's refusal to grant interim compensation.

Issue (ii): Whether the order directing interim compensation was sustainable when it did not consider the quantum of compensation on relevant factors.

Analysis: Even where a case for interim compensation is made out, the court must separately apply its mind to the amount to be awarded within the statutory limit. The impugned order directed payment of the maximum percentage without any discussion on quantum or the factors relevant to fixation of compensation, which rendered it legally infirm.

Conclusion: The order directing interim compensation was unsustainable for want of consideration of quantum.

Final Conclusion: The writ petition succeeded, the revisional order was set aside, and the Magistrate's refusal to grant interim compensation stood restored.

Ratio Decidendi: Section 143A confers a discretionary power to grant interim compensation, requiring a prima facie assessment of the complainant's case and the accused's defence, and the court must independently determine the quantum on relevant factors before awarding compensation.

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