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    Case LawsIndian Laws
    Interim Compensation in Cheque Dishonor Cases: Discretion and Due Process, Scope of the word "May"
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    Case LawsIndian Laws
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    Interim compensation discretion: courts must prima facie assess claims and defences before ordering payment under Section 143A.
    The Court interpreted Section 143A(1) of the Negotiable Instruments Act as conferring a discretionary power to order interim compensation, holding that the word "may" cannot be read as mandatory. Courts must prima facie assess the complainant's case and the accused's defence; the presumption under section 139 alone does not suffice. Interim compensation may be directed only when a prima facie case is established, with the quantum determined after considering transaction nature, parties' relationship, and the accused's paying capacity, and brief reasons must be recorded.

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