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 application of mind and justification for quantum are quashed.

JUDGMENT :

WASIM SADIQ NARGAL, J.

BRIEF FACTS:

1. The petitioner has invoked the jurisdiction of this Court under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, calling in question the order dated 16.03.2026 passed by the Court of Learned Special Mobile Magistrate, Pulwama, whereby an application filed by the respondent under Section 143-A of the Negotiable Instruments Act, 1881 has been allowed.

2. Briefly stated, the respondent had instituted a complaint against the petitioner under Sections 138 and 142 of the Negotiable Instruments Act, alleging dishonor of several cheques purportedly issued by the petitioner in discharge of a legally enforceable liability.

3. The cheques, as detailed in the complaint, include cheque Nos. 209524 (Rs. 5,00,000/-), 209525 (Rs. 5,00,000/-), 209526 (Rs. 3,00,000/-), 209527 (Rs. 4,00,000/-), 209528 (Rs. 8,00,000/-), 209529 (Rs. 5,00,000/-), 209530 (Rs. 5,00,000/-), 209531 (Rs. 6,00,000/-), 209532 (Rs. 3,00,000/-), 209536 (Rs. 5,00,000/-) and 209540 (Rs. 6,00,000/-, all stated to have been issued in favour of the respondent.

4. Upon presentation, the cheques were dishonored, thereafter the complaint came to be filed before the trial Court. The petitioner, upon being summoned, appeared before the trial Court and the substance of accusation was put to her in terms of Section 251 of the Code of Criminal Procedure (now Section 274 of the Bharatiya Nagarik Suraksha Sanhita). The petitioner, at that stage, categorically denied the issuance of the cheques and specifically pleaded that she is not a signatory thereto.

5. During the pendency of the proceedings, the respondent filed an application under Section 143-A of the Negotiable Instruments Act seeking interim compensation.

6. The Learned Special Mobile Magistrate, Pulwama, however, vide order dated 16.03.2026, allowed the application and directed payment of 10% of cheque amount as interim compensation.

7. Aggrieved thereof, the petitioner has filed the present petition, primarily on the ground that the impugned order reflects non-application of mind, inasmuch as the trial Court has failed to consider the specific defence raised by the petitioner regarding denial of signatures and the request for forensic examination, and has proceeded to pass the order in a routine manner without appreciating the scope and object of Section 143-A of the Negotiable Instruments Act.

SUBMISSIONS ON BEHALF OF PETITIONER

8. Learned counsel on behalf of petitioner submits that the order passed by the Learned Special Mobile Magistrate, Pulwama, has failed to consider the relevant material on record and has ignored the settled legal position governing the field. The power under Section 143-A of the Negotiable Instruments Act is discretionary in nature and is required to be exercised judiciously on a case-to-case basis. The object of the provision is to address delay in disposal of cheque dishonour cases, and not to mechanically grant interim compensation. The impugned order, having been passed in an arbitrary and mechanical manner, is liable to be set aside.

9. It is further submitted that there has been a noticeable rise in frivolous and vexatious complaints filed with ulterior motives to harass the accused. In such circumstances, directing payment of interim compensation at a premature stage causes serious prejudice to the accused. In the event of acquittal