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        Indian Laws

        Dishonor of Cheque - grant of interim compensation - It becomes...

        Section 143A of Negotiable Instruments Act: Court's discretion on interim compensation for dishonored cheques, not mandatory.

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                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.
                                Dishonor of Cheque - grant of interim compensation - It becomes apparent that the provision of Section 143A of the NI Act, 1881 has essentially to be held to be “directory’ and cannot be termed to be “mandatory’ to the effect that the Trial Court has mandatorily to award the interim compensation under Section 143A of the NI Act, 1881 in all proceedings tried under Section 138 of the NI Act, 1881 on the mere invocation thereof by a complainant and thereby order in terms of Section 143A(2) thereof, the interim compensation to the tune of 20% of the amount of the cheque invoked. - HC
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