IN THE HIGH COURT AT CALCUTTA
BIBEK CHAUDHURI, J.
Mr. Susanta Chakraborty – Appellant
Versus
Dey’s Construction – Respondent
IA No: CRAN/5/2023 In CRR 89 of 2022
Decided on : 04-05-2023.
Negotiable Instruments Act - Section 138 - Criminal Procedure Code,1973 - Section 200 and 251 – Dishonour of Cheque - Interim order – Challenged - Held, Magistrate himself found that petition Section 143A of Negotiable Instruments Act was not disposed of and on basis of a petition filed by accused Magistrate modified order and fixed for hearing of petition Section 143 of Negotiable Instruments Act - Court have already recorded that Section 143A empowers a Court to pass an order on interim compensation in favour of complainant where accused pleads not guilty to the accusations made in complaint - This does not mean that on date of examination of accused Section 251 of Cr.P.C application Section 143A should mandatorily be disposed of it can be disposed of at any point of time - This Court does not find any illegality or material irregularity in order and irregularity in order which was rectified by Magistrate himself - Petition Disposed of.
Key Points: - Section 143A allows the court to order interim compensation to the complainant where the accused pleads not guilty, depending on the trial stage (!) (!) (!) . - Interim compensation under Section 143A is not required to be disposed of on the date of examination under Section 251 of Cr.P.C and can be disposed of at any point of time (!) (!) . - The court found no illegality or material irregularity in the orders, as the learned Magistrate rectified the clerical error regarding the reference to the wrong court in the order dated 3rd December 2021 (!) (!) .
JUDGMENT :
BIBEK CHAUDHURI, J.
1. The present revisional application has been preferred challenging orders dated 7th October, 2021 and 3rd December, 2021 passed by the learned Judicial Magistrate, 4th court at Barrackpur and the learned Judicial Magistrate, 5th Court at Barrackpur in Complaint Case No.C-448/2020 under Section 138 of the Negotiable Instruments Act.
2. It is submitted on behalf of the petitioner that the opposite party being a proprietorship concern represented by its sole proprietorship Mrs. Soma Dey lodged a complaint against him under Section 138 of the Negotiable Instruments Act. The complaint was initially filed before the learned Judicial Magistrate, 4th court at Barrackpur alleging, inter alia, that the accused/petitioner submitted an order of bulk quantity of N-95 (5 layers) Mask and Surgical Mask at a consideration price of Rs.5,24,608/-. At the time of placing the order the accused/petitioner paid a sum of Rs.20,000/-in favour of the complainant/opposite party through bank transfer. After receiving the goods the petitioner issued an account payee cheque dated 14th August, 2020 amounting to Rs.5,04,608/-drawn on Jana Small Financial Bank. When the complainant deposited the said cheque for encashment to her banker, it was dishonoured due to insufficiency of fund. Thereafter the complainant issued statuary notice to make payment of the amount involved in the cheque within the stipulated period of time and on his failure she filed the complaint against the petitioner on 4th February, 2021 in the 4th Court of learned Judicial Magistrate. It is further stated by the petitioner that the opposite party was examined under Section 200 of the Cr.P.C. The complainant filed her evidence on affidavit in terms of Section 145(1) of the Negotiable Instruments Act. On perusal of the petition of complaint and initial deposition of the complainant as well as other materials the learned Magistrate issued process against the petitioner directing him to appear/surrender before the trial court on 6th May, 2021. However due to outbreak of Covid-19 the petitioner could not appear before the trial court and the case was adjourned to 24th September, 2021. On 24th September, 2021 the petitioner through his learned Advocate prayed for time for his appearance and the learned Magistrate fixed 7th October, 2021 for service return and appearance of the accused. On 7th October, 2021 the accused surrendered before the learned Judicial Magistrate, 4th Court at Barrckpur and he was released on bail. The complainant also filed an application under Section 143A of the Negotiable Instruments Act praying for a direction upon the accused for payment of interim compensation. The learned Magistrate fixed next date for payment of interim compensation by the accused without mentioning any mode of payment. Subsequently the said case was fixed on 3rd December, 2021 for examination of the accused under Section 251 of the Cr.P.C and payment by the accused person on the self same date. The learned Advocate for the accused filed a petition praying for modification of the order dated 7th October, 2021 along with a petition for adjournment. The prayer for adjournment was refused and the accused was examined under Section 251 of the Cr.P.C by the learned Magistrate thereafter the case was fixed for examination of PW1 on 15th March, 2022 and hearing of the petition under Section 143A of the Negotiable Instruments Act.
3. It is contended on behalf of the petitioner that Section 143 of the Negotiable Instruments Act states that the Court may order the drawer of the cheque to pay interim compensation to the complainant-
(b) in any other case, upon framing of charge.
4. The grievance of the petitioner is that the application under Section 143A of the Negotiable Instruments Act was allowed on 7th October, 2021 without plea of the petitioner being recorded b
Power under Section 143A NI Act to direct interim compensation is discretionary, requiring prima facie evaluation of case and defence, with brief reasons recorded; mechanical orders lacking applicati....
Whenever a discretionary power is to be exercised by Court, same has to be exercised on well-recognized principles supported by reasons.
The discretion to grant interim compensation under Section 143-A of the NI Act must be supported by reasons and should be based on well-recognized principles.
[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....
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.
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