IN THE HIGH COURT AT CALCUTTA
SHAMPA DUTT (PAUL), J.
Nilkanta Kali – Petitioner
Versus
V.T.R. Marketing – Respondent
C.R.R. No. 2613 of 2019
Decided On : 27-09-2022
Negotiable Instrument Act, 1881 - Section 143A, 138 - Criminal Procedure Code, 1973 - Section 362, 251 - Pay interim compensation - Cheque dishonoured - Insufficient funds - Criminal revisional application has been preferred against order directing petitioner to pay interim compensation and order wherein prayer for review was rejected - Held, Petition of complaint before Trial Court was filed that is much prior to coming of effect Section 143A of N.I. Act and said provision being given prospective effect (thus not retrospective), it is clear that learned Magistrate wrongly applied provision of Section 143A in present case and as such said order under Section 143A of N.I. Act in C.R. Case being not in accordance with law is liable to be quashed - If orders under revision are allowed to remain then same would be abuse of process of Court and as such said orders pending before Ld. Magistrate, 3rd Court not being in accordance with law are hereby quashed and set aside - Ordered accordingly.
JUDGMENT :
SHAMPA DUTT (PAUL), J.
1. The criminal revisional application has been preferred against order dated 13.12.2018 directing the petitioner to pay interim compensation under Section 143A of the Negotiable Instrument Act and order dated 02.08.2019 wherein prayer for review was rejected in CR Case no. 86 of 2018 under Section 138 of Negotiable Instrument Act.
2. The complainant/opposite party filed an application against the accused/petitioner under Section 138 of the N.I. Act, 1881 before the learned Chief Judicial Magistrate, Paschim Medinipur against the petitioner inter alia praying for granting relief as prayed for on the grounds as stated therein. The said application has been registered as C.R. Case No. 86 of 2018. Subsequently the said case has been transferred to the Ld. Court of Judicial Magistrate, 3rd Court, Paschim Medinipur for taking necessary steps for disposal thereof.
3. Mr. Uttam kumar Bhattacharrya, learned Counsel for the petitioner/accused submits that in course of day to day business the accused/petitioner issued an A/C payee cheque no. 401131 of Rs. 11,30,389/-drawn on Punjab National Bank, Gobardhanpur, Hour, District-Purba Medinipur in favour of the complainant, a partnership firm. The complainant deposited the said cheque but the same has been dishonoured for “funds insufficient” and was returned to the complainant vide Memo dated 29.12.2017.
4. Thereafter despite receipt of the Notice dated 10.01.2018 the accused did not take steps for payment of the said amount.
5. On 28.10.2018 the learned Judicial Magistrate started the proceedings against the accused/petitioner.
6. In the said case, by an order dated 13.12.2018 the accused was granted bail on the condition as stated therein.
7. By an order dated 13.12.2018 the Ld. Magistrate was also pleased to direct the complainant inter-alia to pay the complainant an amount of Rs. 1,13,038/- as interim compensation as per Section 143A of the Negotiable Instruments (Amendment) Act, 2018 within Sixty day from 13.12.2018 as the accused pleaded “Not guilty” of the charge made against him.
8. It is the further case of the petitioner that the complainant had not filed any application praying for interim compensation under Section 143A of the N.I. Act, 2018. But the learned Magistrate passed the impugned order dated 13.12.2018.
9. It is further submitted by the learned lawyer for the petitioner that the said interim payment of compensation as per Section 143A is applicable in respect of the cases filed after the date of the said N.I. Amendment Act, 2018 came into force but the cases which are filed before the date of effect of the said Amendment Act, 2018 will not come under the operation of the said Section 143A and as such the impugned order dated 13.12.2018 is not in accordance with law and the said provision of Section 143A of the N.I. Act is not applicable in criminal case no. 86 of 2018 as the said case was filed prior to the coming into force of the said provision of the Act and as such the impugned order is liable to be quashed and set aside.
10. The petitioner then filed an application dated 17.04.2019 under Section 362 of the Cr.P.C. praying for recall/review of the order dated 13.12.2018.
11. The learned Magistrate vide his order dated 02.08.2019 on hearing both sides rejected the said application on the ground that the Court could not alter or review its order under Section 362 Cr.P.C.
12. A criminal revision case no. 565 of 2019 was then filed before the learned District and Sessions Judge, Paschim Medinipur against the said order. The said revision was not admitted by the said Court and as such the petitioner has approached this Court praying for setting aside the said orders and quashing of the same.
13. The learned lawyer for the petitioner has relied upon the ruling cited in G.J. Raja vs. Tejraj Surana in Criminal Appeal No. 1160 of 2019 and Special Leave Petition (Criminal) No. 3342 of 2019 dated 30.07.2019 in support of his contention.
14. The learned lawy
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Hitendra Vishnu Thakur and Others v. State of Maharashtra and Others
[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.
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.
Whenever a discretionary power is to be exercised by Court, same has to be exercised on well-recognized principles supported by reasons.
The legal principle established is that Section 143(A) of Negotiable Instruments Act is discretionary and not mandatory, and the court emphasized the need for proper application of mind in granting i....
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....
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