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Nargees Javaid – Appellant
Versus
Ghulam Jeelani Nengroo – Respondent
| Table of Content |
|---|
| 1. cheque dishonour complaint; petitioner denies signatures. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7) |
| 2. interim compensation discretionary; requires judicial reasons. (Para 8 , 9 , 10 , 11 , 12 , 13) |
| 3. section 143a grants discretionary interim compensation power. (Para 14 , 15 , 16 , 17 , 18) |
| 4. impugned order lacks prima facie evaluation and reasons. (Para 19 , 20 , 21 , 22) |
| 5. courts must evaluate merits, record reasons for compensation. (Para 23 , 24) |
| 6. quantum must be reasoned; discretionary power judicially exercised. (Para 25 , 26 , 27 , 28) |
| 7. order quashed; remand for reasoned fresh decision. (Para 29 , 30 , 31) |
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
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....
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.
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.
Whenever a discretionary power is to be exercised by Court, same has to be exercised on well-recognized principles supported by reasons.
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.
Section 143A of the Negotiable Instruments Act is directory, allowing judicial discretion in awarding interim compensation, requiring consideration of case merits and relevant factors.
(1) Provision of sub-section (1) of Section 143A of Negotiable Instruments Act, 1881, which provides for grant of interim compensation, is directory and not mandatory.(2) Non-payment of interim comp....
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