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2022 Supreme(Cal) 809

IN THE HIGH COURT OF CALCUTTA
Kausik Chanda, J.
Indranil Mukherjee - Appellant
Versus
The State Of West Bengal And Others - Respondent
C.R.R. No. 1555 of 2021
Decided On : 21-04-2022

Advocates appeared:
Mr. Ayan Bhattacharjee, Advocate, Mr. Indrajit Adhikari, Advocate, Mr. Sharequl Haque, Advocate, Mr. Subhajit Manna, Advocate, Mr. Somdev Ash, Advocate, Mr. Suman Majumder, Advocate, for the Appellant; Mr. Sonal Anand, Advocate, for the Respondent.

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 cannot be recovered from the estate of a deceased accused who died before the conclusion of the trial.

Headnote:

Compensation - Negotiable Instruments Act - 138/141 - 143A, 421 - Summary: The court discussed the recovery of compensation under Section 138 and interim compensation under Section 143A of the Negotiable Instruments Act, 1881. It held that compensation under Section 138 can be recovered from the estate of a deceased accused, but interim compensation under Section 143A cannot be recovered from the estate of a deceased accused who died before the conclusion of the trial.

Fact of the Case:

The petitioner filed a complaint under Sections 138/141 of the Negotiable Instruments Act, 1881, seeking recovery of interim compensation. The accused died during the trial, and the petitioner filed an application for recovery of the interim compensation.

Finding of the Court:

The court found that compensation under Section 138 can be recovered from the estate of a deceased accused, but interim compensation under Section 143A cannot be recovered from the estate of a deceased accused who died before the conclusion of the trial.

Issues: The issues were whether the compensation awarded under Section 138 of the Negotiable Instruments Act, 1881 can be recovered from the estate of a deceased accused and whether an interim compensation awarded under Section 143A of the Negotiable Instruments Act, 1881 can be recovered from the estate of a deceased accused who died before the conclusion of the trial.

Ratio Decidendi: The court held that compensation under Section 138 can be recovered from the estate of a deceased accused, but interim compensation under Section 143A cannot be recovered from the estate of a deceased accused who died before the conclusion of the trial.

Final Decision: The revisional application was dismissed without interfering with the order of the learned Magistrate in the Court below.

Judgement Key Points

Certainly. Based on the provided legal document, here are the key points relevant to your inquiry:

  1. The court clarified that compensation awarded under Section 138 of the Negotiable Instruments Act, 1881, can be recovered from the estate of a deceased accused. This means that if the accused passes away after the order for compensation has been issued, the estate may be liable for repayment (!) (!) .

  2. Conversely, interim compensation granted under Section 143A of the Negotiable Instruments Act, 1881, cannot be recovered from the estate of a deceased accused if the accused dies before the conclusion of the trial. The court emphasized that such interim orders are dependent on the outcome of the trial and cease to have effect upon the death of the accused (!) .

  3. The order of interim compensation is not final and is contingent on the trial's outcome. Since the trial cannot proceed against a deceased person, the interim compensation paid in such cases is not recoverable from the estate (!) .

  4. The legal provisions relating to the recovery of fines and compensation, including the application of laws governing fines and their recovery, extend to the provisions of the Negotiable Instruments Act, 1881, through applicable statutory mechanisms. This supports the position that compensation under Section 138 can be recovered from the estate, whereas interim compensation under Section 143A cannot (!) (!) .

  5. The court dismissed the revisional application without interfering with the lower court’s order, reaffirming that interim compensation under Section 143A is not recoverable from the estate of a deceased accused who died before the trial’s conclusion (!) .

These points collectively establish that while final compensation under Section 138 may be recovered from the estate of a deceased accused, interim compensation under Section 143A cannot be recovered if the accused dies prior to the trial's conclusion.


JUDGMENT

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 Subsection (1) of the

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