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JYOTI SINGH
Geeta Monga – Appellant
Versus
Gng Stock Holding Pvt. Ltd. Throught Its Managing Director Sh. Sumit Gupta – Respondent
JUDGMENT
Jyoti Singh, J. (Oral) - This petition has been filed on behalf of the Petitioner assailing impugned orders dated 18.08.2023 and 11.12.2023 passed by the learned Metropolitan Magistrate and learned Additional Sessions Judge, respectively in respect of interim compensation of Rs.3,00,000/- awarded in favour of the Respondent herein being 20% of the amount under the cheque, which was dishonoured on presentation by the Respondent. Respondent is the Complainant and Petitioner herein is the Accused before the learned Trial Court and the parties are hereinafter referred to by their litigating status before this Court.
2. Factual matrix to the extent necessary is that a complaint was filed under Sections 138 and 142 of the Negotiable Instruments Act, 1881 (`NI Act') through Sh. Sumit Gupta, Managing Director, GNG Stock Holding Pvt. Ltd./Respondent herein against the Petitioner Smt. Geeta Monga, in respect of cheque No. 142144 dated 11.03.2020 for Rs.15,00,000/-, issued by the Petitioner in favour of the Respondent and which on presentation with the bank on 12.03.2020 was dishonoured vide memo dated 13.03.2020 with remarks `Exceeds Arrangement'. Petitioner and her husband were infor
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 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....
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 trial Court must provide proper reasons when exercising discretion and awarding compensation under Section 143A of the N.I. Act.
The main legal point established in the judgment is that the learned Magistrate must exercise discretion in granting interim compensation under Section 143-A of the Negotiable Instruments Act, 1881, ....
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.
Word ‘may’ appearing in Section 143A of Negotiable Instruments Act, 1881 is not discretionary but directory in nature.
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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