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
| 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 :-
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
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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