Revision filed under Section 397/401 of CrPC praying that in the circumstances stated in the affidavit filed in support of the CriminalRevisionCase, the High Court may be pleased to set aside the orders passed in Crl.MP No. 4037 /2023 in C.C.No.400/2023 on the file of Addl. Judicial Magistrate of First Class, Nandigama in the interest of justice.

IA NO: 1 OF 2026

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to Suspend the order passed in Crl.MP No.4037 /2023 in C.C.No.400/2023 on the file of Addl. Judicial Magistrate of First class, Nandigama pending disposal of Crl.RC in the interest of justice

The Court made the following:

ORDER

This Criminal Revision Case under Sections 438 and 442 of Bharatiya Narik Suraksha Sanhita, 2023 by the Petitioner/Accused seeking to set aside the Order dated 16.01.2026 passed in Crl.M.P.No.4037 of 2023 in CC No.400 of 2023 on the file of the Court of Additional Judicial Magistrate of First Class, Nandigama.

The relevant facts of the case, in brief, are that

i) The Petitioner herein is the Accused and respondent No.2 is the Complainant in CC No.400 of 2023 on the file of the Court of Additional Judicial Magistrate of First Class, Nandigama. The Petitioner/Accused and the complainant are known to each other prior to the filing of the present case. On request of the Petitioner, on 25.05.2021 the complainant gave an amount of Rs.50.00 lakhs to the Petitioner for her business activities and the Petitioner executed a promissory for the said amount in favour of the complainant agreeing to repay the said amount with interest at 24% per annum.

ii) On several demands, the petitioner issued a cheque bearing No.539088 dated 06.02.2023, drawn on State Bank of India, Nandigama Krishna District for an amount of Rs.45.00 lakhs in favour of the Complainant. On presentation of the said cheque, the Bank of Baroda authorities sent an endorsement to the Complainant, on 08.03.2023, to the effect that “Funds Insufficient”.

iii) After following the procedure contemplated under the provisions of the Negotiable Instruments Act, the complainant filed a private complaint before the Trial Court against the Accused for the offence punishable under Section 138 of the Negotiable Instruments Act, (for short „N.I.Act‟), which is the subject matter in CC No.400 of 2023.

iv) In the above CC, the Complainant filed a Petition under Section 143-A of N.I.Act vide Crl.M.P.No.4037 of 2023 seeking direction to the Accused to pay an interim compensation of Rs.9,00,000/- to him. Having heard both sides, the learned Magistrate by Order dated 16.01.2026 allowed the Petition directing the Accused to pay interim compensation of Rs.9.00 lakhs, which is equivalent to 20% of the cheque amount, to the complainant within 6 days from the date of that order. Aggrieved thereby, the present criminal revision case has been filed by the petitioner/Accused seeking to set aside the order impugned.

Heard Sri P.Nagendra Reddy, learned counsel for the Petitioner and Ms.Suryadevara Sirisha, learned counsel for the respondent No.2 and Ms.K.Priyanka Lakshmi, learned Assistant Public Prosecutor for respondent No.1/State. Perused the material on record.

Learned counsel for the Petitioner would submit that Sections 143-A of N.I.Act is not applicable to the facts of the case and payment of compensation of 20% of the cheque amount is not mandatory. Further, the calendar case is coming for submission of sureties and the complainant came up with the petition before the Trial Court which is at premature stage. The learned counsel pointed out that Section 143A(1) of the N.I. Act uses the word „may‟. Therefore, the provision is discretionary and the learned Magistrate is not right in granting interim compensation to the complainant. Further, the existence of prima facie case is essential for exercising the power under Section 143A of N.I.Act. After consideration of