https://www.taxtmi.com/caselaws?id=420057 Section 143A of the Negotiable Instruments Act confers a discretionary power to award interim compensation, because the court "may order" payment and is not bound to grant it in every case where the drawer has not pleaded guilty. The provision also caps compensation at 20% of the cheque amount, but the court must still apply its mind to the facts and record reasons for both granting compensation and fixing the quantum. An order treating 20% as automatic, without reasoned exercise of discretion, lacks application of mind and cannot be sustained, especially where recovery consequences may follow under the Code of Criminal Procedure. The order was therefore quashed with consequential relief. en-us Thu, 17 Feb 2022 00:00:00 +0530 Sat, 26 Mar 2022 08:58:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=420057 Section 143A of the Negotiable Instruments Act confers a discretionary power to award interim compensation, because the court "may order" payment and is not bound to grant it in every case where the drawer has not pleaded guilty. The provision also caps compensation at 20% of the cheque amount, but the court must still apply its mind to the facts and record reasons for both granting compensation and fixing the quantum. An order treating 20% as automatic, without reasoned exercise of discretion, lacks application of mind and cannot be sustained, especially where recovery consequences may follow under the Code of Criminal Procedure. The order was therefore quashed with consequential relief. Case-Laws Indian Laws Thu, 17 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=420057