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HARSH BUNGER
Gagan Gandhi – Appellant
Versus
Raj Kumar Sharma – Respondent
| 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 term
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.
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.
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....
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 court emphasized the importance of considering the specific provisions of Section 143-A of the Negotiable Instruments Act when ordering interim compensation in cases of cheque dishonor.
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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