IN THE HIGH COURT OF CALCUTTA
Kausik Chanda, J.
Indranil Mukherjee - Appellant
Versus
The State Of West Bengal - Respondent
C.R.R. No. 1555 of 2021
Decided On : 21-04-2022
Compensation - Negotiable Instruments Act - 143A, 421 - The court discussed the relevant provisions of Section 143A of the Negotiable Instruments Act, 1881, Section 421 of the Code of Criminal Procedure, 1973, and Section 70 of the Indian Penal Code, 1860. The court analyzed the recoverability of compensation from the estate of a deceased accused and the distinction between compensation awarded under Section 138 and interim compensation under Section 143A. The court held that compensation awarded under Section 138 can be recovered from the estate of a deceased accused, but interim compensation awarded under Section 143A cannot be recovered from the estate of a deceased accused who died before the conclusion of the trial.
ORDER
Kausik Chanda, J. - This revisional application has been preferred against an order dated April 3, 2021, passed by the learned Metropolitan Magistrate, 20th Court, Calcutta in CS-6964 of 2019. By the order impugned the learned Magistrate dismissed an application filed under Section 421 of the Code of Criminal Procedure, 1973, seeking recovery of the interim compensation awarded to the petitioner by an order dated March 4, 2020.
2. The relevant facts, which are not disputed by either of the parties before this Court, are as follows.
3. The petitioner filed a complaint under Sections 138/141 of the Negotiable Instruments Act, 1881, against the accused persons for the dishonour of a cheque amounting to Rs.50 (fifty) lakh. The case was transferred to the Court of learned Metropolitan Magistrate, 20th Court, Calcutta, and before the said Magistrate, the petitioner filed an application under Section 143A of the said Act for interim compensation.
4. Learned Magistrate by an order dated March 4, 2020, allowed the said application directing the accused namely, Rajeev Arora (since deceased) to pay interim compensation to the tune of twenty percent of the total cheque amount to the petitioner in terms of Section 143A of the said Act within sixty days from the date of order.
5. The said order of the learned Magistrate passed on March 4, 2020, was challenged by Rajeev Arora before the Chief Judge, City Sessions Court, by filing a revisional application.
6. During the pendency of the said application, Rajeev Arora died on October 19, 2020, leaving behind his widow and opposite party nos. 2(a) and (b) as his legal heirs.
7. The order dated March 4, 2020, was affirmed by the learned Chief Judge, City Sessions Court on December 2, 2020, and thereafter the petitioner filed an application under Section 421 of the Code of Criminal Procedure, 1973 before the learned Magistrate for recovery of the interim compensation awarded by the order dated March 4, 2020. The learned Magistrate by the order impugned in this revisional application dated April 3, 2021, dismissed the petition holding, inter alia, that interim compensation awarded to the petitioner could not be executed inasmuch as criminal liability including the pecuniary penalties stood extinguished upon the death of the accused person.
8. Assailing the said order dated April 3, 2021, the learned advocate for the petitioner, Mr. Ayan Bhattacharjee with his usual eloquence elaborately argued before this Court by referring to Section 143A of the Negotiable Instruments Act, 1881, Section 421 of the Code of Criminal Procedure, 1973, and Section 70 of the Indian Penal Code, 1860. Mr. Bhattacharjee argued that by virtue of Section 25 of the General Clauses Act, 1897, the provisions of Section 63 to 70 of the Indian Penal Code, 1860, and the provisions of the Code of Criminal Procedure, 1973, in relation to the execution of warrants for levy of fines are applicable to the Negotiable Instruments Act, 1881. Mr. Bhattacharjee submitted that an interim compensation is also liable to be recovered from the estate of the deceased accused since the liability so accrued on account of the non-payment by the deceased remains recoverable from the estate of the deceased.
9. In support of his submission, Mr. Bhattacharjee has relied upon the decisions rendered in (Ramesan v. State of Kerala) reported at (2020) 3 SCC 45 and (Shamim Saifuddin Sarkhot v. Jugraj Miyachand Jain) reported at (2016) 2 ABR (Cri) 191.
10. Mr. Bhattacharjee further argued that the aforesaid provisions of law make it clear that the liability to pay the compensation amount does not get automatically absolved on the death of the person responsible to pay, and when the statutory provision is clear a Court cannot interpret to amendment or alter the law. He submitted that any argument to the contrary will make Section 143A of the Negotiable Instruments Act, 1881 inoperative. He suggested that interim compensation payable under Sub- section (1) of the s
M. Abbas Haji vs. T.N. Channakeshava) reported at (2019) 9 SCC 606
NEPC Micon Ltd. vs. Magma Leasing Ltd.
The court established that compensation under Section 138 of the Negotiable Instruments Act, 1881 can be recovered from the estate of a deceased accused, but interim compensation under Section 143A c....
Interim compensation under Section 143-A of the NI Act is discretionary, requiring consideration of both parties' merits and the opportunity for a defense, which was not provided in this case.
[The provisions of Section 143A of the NI Act, 1881 are directory and grant discretion to the court to award interim compensation, which must be exercised based on a prima facie evaluation of the mer....
Word ‘may’ appearing in Section 143A of Negotiable Instruments Act, 1881 is not discretionary but directory in nature.
(1) Provision of sub-section (1) of Section 143A of Negotiable Instruments Act, 1881, which provides for grant of interim compensation, is directory and not mandatory.(2) Non-payment of interim comp....
The discretionary nature of Section 143A of the NI Act, the need for the Trial Court to record reasons for awarding compensation, and the limited scope of interference under Section 482 Cr.P.C.
The court affirmed that under Section 143A of the NI Act, the power to award interim compensation is discretionary, requiring evaluation of the merits of the case and the accused's defence.
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