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CHHATTISGARH HIGH COURT
Narendra Kumar Vyas, J.
Rajesh Soni – Petitioner
versus
Mukesh Verma – Respondent
Cr. M.P. No.562 of 2021
Decided on 30.6.2021

Advocates:
Counsel for the Parties:
For the Petitioner:Mr. D.K. Gwalare, Advocate

IMPORTANT POINT
Word ‘may’ appearing in Section 143A of Negotiable Instruments Act, 1881 is not discretionary but directory in nature.

Headnote:

Negotiable Instruments Act, 1881 – Section 143-A – Criminal Procedure Code, 1973 – Section 482 – Direction to accused to pay 20% of cheque amount as compensation – Word ‘may’ used is beneficial for complainant because complainant has already suffered for misdeed committed by accused by not paying amount – It is in interest of complainant as well accused if 20% of cheque amount is to be paid by accused, he may be able to utilize the same for his own purpose, whereas accused will be in safer side as amount is already deposited in pursuance of order passed under Section 143A of Act, 1881 – When final judgment passed against him, he has to pay allowances on lower side – Section 143A of Act, 1881 has been drafted in such a manner that it secures interest of complainant as well as accused – Word ‘may’ may be treated as ‘shall’ and it is not discretionary but of directory in nature – Judicial Magistrate has rightly passed interim compensation in favour of complainant – Petition dismissed. (Paras 12, 16, 19 and 20)

Result: Petition dismissed.

Judgement Key Points

No, the provided legal document does not indicate that this judgment has been appealed.

This is a final order of the Chhattisgarh High Court in Cr. M.P. No. 562 of 2021, dated 30.6.2021, dismissing the petitioner's challenge under Section 482 Cr.P.C. to the lower courts' orders directing interim compensation under Section 143A of the Negotiable Instruments Act, 1881. (!) (!) [5000302970002][5000302970005][5000302970020] (!)

The document details the procedural history (Magistrate's order dated 24.12.2019 and Sessions Judge's order dated 06.03.2021 rejecting revision) but contains no reference to any appeal, further proceedings, stay, or Supreme Court involvement against this High Court judgment. The order concludes with dismissal and "No order as to costs," marking it as a terminal disposition in the described proceedings. (!) [5000302970004][5000302970005][5000302970019][5000302970020] (!)


ORDER (CAV)

Narendra Kumar Vyas, J.—The petitioner has filed present petition under Section 482 of Cr.P.C. challenging the order dated 24.12.2019 passed by Judicial Magistrate First Class, Raipur (C.G.) in Complaint Case No. 1777/2019 wherein learned trial court has allowed the application filed by the complainant under Section 143A of the Negotiable Instrument Act, 1881 (for short “the Act, 1881”) and has directed the petitioner to pay 20% of the cheque amount, as well as order dated 06.03.2021 passed by 11th Additional Sessions Judge Raipur, District- Raipur (C.G.) by which the criminal revision filed by the petitioner has been rejected.

2. The brief facts, as projected by the petitioner, are that complainant/ respondent has filed complaint against the petitioner under Section 138 of the Act, 1881 on 09.01.2019 before Judicial Magistrate First Class, Raipur, District- Raipur (C.G.) mainly contending that the petitioner had given a cheque dated 26.11.2018 amounting to Rs. 6,50,000/- to the complainant. The complainant has deposited the cheque on 28.11.2018 in the account maintained by him in Central Bank of India, Branch- Chhattisgarh College, Raipur. The said cheque was dishonoured and returned due to insufficient fund on 14.12.2018, therefore, the offence under Section 138 of the Act, 1881 has been committed by the petitioner.

3. The complainant has sent a legal notice to the petitioner on 17.12.2018 as petitioner has not paid the amount of cheque, therefore, the complainant has filed a Complaint Case No. 1777/2019 before Judicial Magistrate First Class, Raipur, The learned Judicial Magistrate First Class taking cognizance on the complaint, issued summon to the petitioner. On 04.05.2019, the complainant has filed an application under Section 143A of the Act, 1881 contending that the charges have already been framed wherein he has denied the charges levelled against him. Further contention of the complainant is that as per the provisions of Section 143A of the Act, 1881, if charges have been framed against the accused, the interim compensation can be ordered by the Court to the extent of 20% of the cheque amount, therefore, he prayed for grant of 20% of the amount as interim compensation.

4. The learned Judicial Magistrate First Class vide its order dated 24.12.2019 considering the amended provisions of Section 143A of the Act, 1881, directed the accused to pay 20% of the cheque amount as compensation, failing which proceeding under sub-section (v) of Section 143A will be initiated against petitioner, thereafter fixed the case for hearing on 20.01.2020.

5. Being aggrieved by the aforesaid order, the petitioner preferred Criminal Revision No. 102/2020 before the Sessions Judge, Raipur which was transferred to the Court of 11th Additional Sessions Judge, Raipur, District- Raipur. The learned 11th Additional Sessions Judge vide its order dated 06.03.2021 dismissed the revision by recording a finding that there is no illegality and irregularity in the impugned order passed by the learned Judicial Magistrate First Class, Raipur and same is inconformity with the amended provisions of Section 143A of the Act, 1881. Both these orders have been challenged by the petitioner in the present petition.

6. Learned counsel for the petitioner would submit that as per amended provision of Section 143A of the Act, 1881, grant of interim compensation is not mandatory and it is discretionary, therefore, it is not necessary in every case to grant 20% of cheque amount as interim compensation. He has drawn attention of this Court towards amended provision of Section 143A of the Act, 1881, which is extracted below:-

“143-A – Power to direct interim compensation – (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the Court trying an offence under Section 138 may order the drawer of the cheque to pay interim compensation to the complainant—

(a) in a summary trial or summon case, where the drawer pleads

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