The petitioner is before this Court calling in question

the order dated 07.10.2021 passed in CC No.2024/2020

directing the petitioner to deposit 20% of cheque amount

under Section 143-A of the Negotiable Instruments Act,

1881 ( ‘N.I Act’ for short), as amended in the year 2018.

2.

Heard the learned counsel appearing for the

petitioner.

3.

The

respondent

though

served,

remains

unrepresented.

4.

The petitioner and the respondent had certain

transactions and certain cheques issued by the petitioner

in favor of the respondent/complainant appears to have

been dishonoured which leads to registration of the crime

3

invoking Section 200 of the Cr.P.C. for an offence

punishable under Section 138 of the N.I. Act.

5. The present case is not with regard to the merit of

the claim of the complainant. In the proceedings i.e., in

C.C.No.2024/2020, the Court suo motu passes an order on

07.10.2021 directing payment of 20% of the amount

involved in the transaction without notifying the accused or

giving him an opportunity to file his objections. It is this

order that drives the petitioner-accused to this Court.

6. The learned counsel for the petitioner would

submit that the complainant himself did not prefer an

application seeking any amount to be paid in terms of

Section 143A of the Act and had no opportunity to even

rebut the order in the light of no application being filed.

The Court suo motu takes upon itself and passes the said

order. To consider the submission made by the learned

counsel for the petitioner, it is germane to notice Section

143A of the Act and it reads as follows:

“143A. Power to direct interim compensation.—

(1) Notwithstanding anything contained in

the Code of Criminal Procedure, 1973 (2 of

4

1974), 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 sub-section (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 11974).

(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.”.

(Emphasis supplied)

5

7. A perusal at Section 143A of the Act (supra)

would result in acceptance of the submission of the learned

counsel for the petitioner only partially. Section 143A of

the Act does not in every circumstance mandate filing of

an application. The Court trying an offence under Section

138 may order the drawer of the cheque to pay interim

compensation

to

the

complainant

and

the

interim

compensation shall not exceed 20% of the amount of the

instrument/cheque. Till this stage, it is the discretion of

the Court, as the statute depicts that the Court may award

interim compensation. But once the Court awards, its non-

payment results in penal consequences. Sub-section (5)

of Section 143A m