TaxTMI 
TaxTMI 
2023 (2) TMI 823
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....ondent/complainant under Section 143-A of Negotiable Instruments Act in complaint case no. NACT/609/2021 titled as "Mohd. Salim Vs. Mohd. Sultan". As per facts of the case, complainant/respondent filed a complaint under section 138 of Negotiable Instruments Act, wherein it was contended that the accused/petitioners borrowed a sum of Rs.10 lakh from the complainant and in consideration of the said amount he issued a post dated cheque no.318836 dated 6.6.2021 in favour of the complainant drawn on State Bank of India, ADB Branch, Moti Bazar, Malerkotla. It was assured to the complainant by the petitioner that the cheque would be honoured on being presented in the bank, however, when the respondent complainant presented the same before the A....
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....he suit for recovery and police complaints filed by the family members of the petitioner. She submits that the Trial Court has fallen in error in interpreting the provision of Section 143-A of the Negotiable Instruments Act. She further submits that the statutory provision under Section 143-A of Negotiable Instruments Act makes it clear that the court while trying an offence under Section 138 of Negotiable Instruments Act "may" order the drawer of the cheque to pay interim compensation to the complainant and thus it is a discretion vested in the Trial court for directing the interim compensation and not a mandatory provision to be granted in every case. It is submitted that the court is to see that nobody plays with the law of land and thos....
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.... of the cheque amount and the same has been rightly awarded by the Trial Court. Counsel has relied upon the judicial precedent of the Hon'ble Supreme Court in case of Noor Mohammed Vs. Khurram Pasha, SLP (Criminal) No.2872 of 2022 decided on 2.8.2022 and submits that the present petition being devoid of any merits, deserves to be dismissed. I have heard learned counsel for the parties at length and have gone through the case record carefully. For the appreciation of the controversy involved the provision of Section 143-A of Negotiable Instruments Act is relevant and the same is reproduced hereunder:- "143-A. Power to direct interim compensation- (1) Notwithstanding anything contained in the Code of Criminal Proce....
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....hall be reduced by the amount paid or recovered as interim compensation under this section." It is apposite to mention here that the provisions of Section 143-A and that of Section 148 of Negotiable Instruments Act were not in the original act and the same were incorporated by the Legislature by way of amendment. The objects and reasons for incorporating these provisions are as follows:- "The Negotiable Instruments Act, 1881 (the Act) was enacted to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques. The said Act has been amended from time to time so as to provide, inter alia, speedy disposal of cases relating to the offence of dishonour of cheques. However, the Central Government has been recei....
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....any other case, upon framing of charge. The interim compensation so payable shall be such sum not exceeding twenty per cent of the amount of the cheque; and (ii) to insert a new section 148 in the said Act so as to provide that in an appeal by the drawer against conviction under Section 138, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of twenty per cent of the fine or compensation awarded by the trial court. 4. The Bill seeks to achieve the above objectives." The Hon'ble Supreme Court in Surinder Singh Deswal alias Colonel S.S. Deswal and others Vs. Virender Gandhi (2019) 11 SCC 341 has settled the proposition of law that the provisions of Section 143-A of Negotiable Inst....