Section 143A of the Negotiable Instruments Act is directory, allowing judicial discretion in awarding interim compensation, requiring consideration of case merits and relevant factors.

JUDGMENT :

Mr. Sureshwar Thakur, J.:- The “to be answered reference”, as enclosed in the order passed by the learned Single Judge of this Court, upon CRM-M-14140-2023, becomes ad verbatim extracted hereinafter:

“Whether, provision of Section 143 A of the Act is mandatory/directory and whether, the trial Judge needs to pass a separate speaking order before awarding interim compensation thereunder?”

2. The facts relevant for the rendition of an answer to the above extracted reference, are that, in terms of the provisions embodied in Section 143-A of the Negotiable Instruments Act, 1881 (hereinafter referred to as the ‘N.I. Act’), provisions whereof become extracted hereinafter, the learned Magistrate concerned drew an order on 02.11.2022, upon CIS No. NACT/267/2021, thus directing the accused to pay 20% of the cheque amount as interim compensation to the complainant.

“143A. Power to direct interim compensation.—

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the Court trying an offence under section 138 may order the drawer of the cheque to pay interim compensation to the complainant—

(a) in a summary trial or a summons case, where he pleads not guilty to the accusation made in the complaint; and

(b) in any other case, upon framing of charge.

(2) The interim compensation under sub-section (1) shall not exceed twenty per cent of the amount of the cheque.

(3) The interim compensation shall be paid within sixty days from the date of the order under subsection (1), or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the drawer of the cheque.

(4) If the drawer of the cheque is acquitted, the Court shall direct the complainant to repay to the drawer the amount of interim compensation, with interest at the bank rate as published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year, within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the complainant.

(5) The interim compensation payable under this section may be recovered as if it were a fine under section 421 of the Code of Criminal Procedure, 1973 (2 of 1974).

(6) The amount of fine imposed under section 138 or the amount of compensation awarded under section 357 of the Code of Criminal Procedure, 1973 (2 of 1974), shall be reduced by the amount paid or recovered as interim compensation under this section.”

3. The order (supra) becomes challenged by the aggrieved therefrom accused, through his instituting the CRM-M-14140-2023, which is yet subjudice before this Court. It appears that no final adjudication has been made upon the said petition, as an answer to the reference (supra) is awaited. The order (supra) becomes extracted hereinafter:

“Arguments heard. On finding prima facie case, notice of accusation served upon the accused. Contents of notice read over and explained to the accused in simple Punjabi language to which the accused pleaded not guilty and claimed trial. Accused has given no explanation whatsoever how his cheque in question came into the hands of complainant and merely stated that he does not plead guilty. Therefore, as per provisions of Section 143-A Negotiable Instruments Act, accused is directed to pay 20% of the cheque amount as interim compensation to the complainant within a period of 60 days from today.

Now to come upon 09.01.2023 for payment of interim compensation as well as evidence of complainant.”

4. It would be apt to record here that, the petition (supra) is tagged with CRM-M-16597-2023, on account of its encompassing an almost alike impugned order and also an alike issue. The order impugned therein also becomes extracted hereinafter:

“Reply to application under Section 143-A filed. Copy supplied. Heard on the application Under Section 143-A of Negotiable Instruments Act filed by the complainant for interim compensa