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IN THE HIGH COURT OF ALLAHABAD, LUCKNOW BENCH
Rajnish Kumar
Dhanu Krishi Sewa Kendra Thru. Its Proprietor Vishal Sharma – Appellant
Versus
State Of U.P. Thru. Prin. Secy. Home Lko. – Respondent
JUDGMENT :
Rajnish Kumar, J.
1. Heard Shri Shantanu Mishra, learned counsel for the applicants and Shri Anurag Verma, learned Additional Government Advocate.
2. This application under Section 482 CrPC (now Section 528 BNSS , 2023) has been filed assailing the order dated 15.05.2025 passed in Case No. 111255 of 2023; Raj Kishore Sharma vs. Dhanu Krishi Sewa Kendra and another by the Additional Court No. 9 (NI Act), Lucknow and order dated 28.05.2025 passed in Criminal Revision No. 282 of 2025; Dhanu Krishi Sewa Kendra vs. Raj Kishore Sharma and others by the Session Judge, Lucknow.
3. Learned counsel for the applicants submits that the application filed under Section 143A of Negotiable Instruments Act (here-in-after referred as NI Act) for interim compensation by the respondent no. 2 has wrongly and illegally been allowed by the concerned court. He further submits that the presumption for payment of interim compensation could not have been drawn at this stage and it can be drawn only at the stage of trial after considering evidence. He further submits that the cheques- in-question were lost, therefore, a Lost Article Report (LAR) was lodged with the bank, on account of which, the stop
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.
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.
(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....
The court affirmed that under Section 143A of the NI Act, the power to award interim compensation is discretionary, requiring evaluation of the merits of the case and the accused's defence.
Section 143A of the Negotiable Instruments Act is directory, allowing judicial discretion in awarding interim compensation, requiring consideration of case merits and relevant factors.
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.
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