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IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR
SANJAY DHAR
Mubashir Manzoor – Appellant
Versus
Mushtaq Ahmad Wani – Respondent
ORDER :
1. By this common order, the afore-numbered three petitions are proposed to be disposed of.
2. The petitioner through the medium of present petitions has challenged three separate orders dated 11.04.2022 passed by learned Chief Judicial, Srinagar, in three separate complaints, whereby interim compensation in terms of Section 143-A of Negotiable Instruments Act (for short “N I Act”) to the extent of 20% of the cheque amount has been awarded in favour of the complainant/respondent.
3. Heard learned counsel for the petitioner and perused the record.
4. A perusal of the impugned order would reveal that the learned Magistrate, in all the above referred three cases, has awarded interim compensation to the extent of 20% of the cheque amount in favour of the respondent/complainant. However, it is not discernible from the contents of the order as to on what basis the learned Magistrate has proceeded to award the maximum amount of interim compensation under the provision of 143 A of N I Act.
5. It is settled law that the power to award interim compensation in terms of Section 143-A of N I Act is discretionary in nature. This discretion has to be exercised on the basis of valid reasons in
Interim compensation under Section 143-A of the Negotiable Instruments Act must be justified with reasons, and the accused's plea must be recorded before such compensation is awarded.
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 court's failure to evaluate the merits prima facie in interim compensation applications violates procedural requirements under the NI Act.
Interim compensation under Section 143A of the NI Act can be granted before trial; the presumption of validity remains even if not all amounts are covered by the cheque.
Discretionary orders under Section 143 A (1) of the Negotiable Instruments Act must be supported by reasons, as orders without reasons are illegal and subject to being set aside.
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.
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