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2023 Supreme(P&H) 1975

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARSH BUNGER, J.
Gagan Gandhi – Petitioner
Versus
Raj Kumar Sharma – Respondent
CRM-M NO.52860 of 2022 (O&M)
Decided On : 20-01-2023

Advocates Appeared:
Mr. Gurmandeep Singh Sullar, Advocate; For the Petitioner
Kr. Prashant Singh Chauhan, Advocate; For the Respondent

Headnote:(A) Negotiable Instruments Act, 1881 - Sections 138, 142, and 143-A - Quashing of complaint for non-speaking interim compensation order - The trial court's order directing payment of 20% of the cheque amount as interim compensation was set aside due to lack of reasoning and arbitrary application of discretion, necessitating a reconsideration of the application in line with legal standards. (Paras 2, 7, 8)

(B) Legal principles surrounding interim compensation under Section 143-A were discussed, emphasizing the requirement for a reasoned decision rather than a mechanical order. (Paras 3, 5)

Facts of the case:
The petition challenges an interim compensation order that lacked justification for the specified percentage, raising concerns about the mechanical manner of the trial court's approach.

Findings of Court:
The interim compensation order was set aside due to insufficient reasoning and an arbitrary decision-making process.

Issues: The issue at hand was whether the trial court exercised its discretion appropriately concerning interim compensation under the Negotiable Instruments Act.

Ratio Decidendi: The court ruled that the trial court must apply its discretion correctly and provide a reasoned order for interim compensation, highlighting that the statutory provision is directory, not mandatory.

Result: Petition allowed.

Table of Content
1. introduction of the case and basis for the petition. (Para 1)
2. arguments regarding the validity of interim compensation order under section 143-a. (Para 2 , 3 , 4 , 5)
3. observations on the trial court's non-speaking and mechanical order. (Para 6 , 7)
4. setting aside of the interim compensation order with directions. (Para 8)
5. conclusion on the case and disposal of pending applications. (Para 9 , 10)

JUDGMENT

Harsh Bunger, J.

Prayer in the present petition filed under Section 482 of the Code of Criminal Procedure, 1973, is for quashing of complaint No.NI-1015-2019 dated 10.05.2019, registered under Sections 138 /142 of the Negotiable Instruments Act, 1881 titled as Raj Kumar Sharma v. Gagan Gandhi (Annexure P-1), pending before the Court of learned Additional Chief Judicial Magistrate, Rewari (Haryana) along with all subsequent proceedings arising therefrom.

2. After arguing for some time, learned counsel for the petitioner restricts his claim only qua order dated 15.09.2021 passed by learned Additional Chief Judicial Magistrate, Rewari, whereby, the petitioner has been directed to pay interim compensation to the complainant as 20% of the cheque amount in terms of Section 143 -A of the Negotiable Instruments Act. Said order dated 15.09.2021 reads as under :-

    "Present:- Complainant in person with Sh. Bhupender Sharma, counsel.

    Accused on bail with Sh. Ricky Chopra, counsel.

    An application for 143(A) of the NI Act for giving directions to the accused to pay 20% of the cheque amount as interim relief to the complainant filed. As per the provisions of section 143A NI Act, the application is allowed and the accused is directed to pay 20% of the cheque amount to the complainant as interim compensation on the next date of hearing. An application under section 145(2) of NI Act has been filed for cross-examination of complainant filed. The same is allowed. Now, to come upon 09.12.2021 for cross-examination for complainant as well as payment of interim compensation 20% by the accused."

3. Learned counsel for the petitioner contended that the impugned order, whereby, the petitioner has been directed to pay interim compensation to the complainant as per the provisions of section 143(A) of Negotiable Instruments Act, is totally non-speaking and illegal, being passed in mechanical manner without application of mind. He further contended that recently Delhi High Court in CRL. MC 2663 of 2021 M/s Jsb Cargo and Freight Forwarder Pvt. Ltd v. State and another; decided on 20.12.2021, held that provision of Section 143 (A) Negotiable Instruments Act, essentially is directory and cannot be termed as mandatory in nature. Learned counsel further contended that it appears that the trial Court gave the impugned direction, having the impression that the aforesaid provision is mandatory in nature.

4. In support of his contentions, learned counsel for the petitioner relies upon judgment of this Court in Harjeet Singh v. Gagandeep Singh (CRM-M-20918 of 2022, decided on 05.07.2022), judgment of Madras High Court in L.G.R. Enterprises v. P. Anbazhagan (Crl. O.P. No.15438 of 2019, decided on 12.07.2019) as well as judgment of Karnataka High Court in Smt. Vijaya v. Shekharappa and others 2022(2) Cri.CC 14.

5. On the other hand, learned counsel for the respondent has supported the order dated 15.09.2021 passed by learned Additional Chief Judicial Magistrate, Rewari, by submitting that the trial Court has rightly granted interim compensation under Section 143 -A of the Negotiable Instruments Act; however, he does not dispute the fact that aforesaid order dated 15.09.2021 is totally non-speaking order.

6. I have heard learned counsel for the parties and perused the paper book with their able assistance.

7. From the perusal of impugned order dated 15.09.2021 passed by learned Additional Chief Judicial Magistrate, Rewari, it appears that the trial Court granted interim compensation under section 143(A) of the Negotiable Instruments Act just

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