The petitioners are before this Court calling in

question the order dated 20.09.2021 passed in C.C.

No.2015/2020 directing the petitioners to deposit 20% of

3

the cheque amount under Section 143-A of the Negotiable

Instruments Act, 1881 ( 8N.I Act9 for short), as amended in

the year 2018.

2.

Heard the learned counsel appearing for the

petitioners.

3.

The

respondent

though

served,

remains

unrepresented.

4.

The petitioners and the respondent had certain

transactions and certain cheques issued by the petitioners

in favor of the respondent/complainant appears to have

been dishonoured, which lead to registration of a crime

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.2015/2020, the Court suo motu passes an order on

20.09.2021, directing payment of 20% of the amount

involved in the transaction without notifying the accused or

4

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

order that drives the petitioners-accused to this Court.

6. The learned counsel for the petitioners would

submit that the complainant himself did not prefer an

application seeking any amount to be paid in terms of

Section 143A of the N.I.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.

7. To consider the submission made by the learned

counsel for the petitioners, it is germane to notice Section

143A of the N.I.Act and it reads as follows:

<143A. Power to direct interim compensation.4

(1) Notwithstanding anything contained in

the Code of Criminal Procedure, 1973 (2 of

1974), the Court trying an offence under

Section 138 may order the drawer of the

cheque to pay interim compensation to the

complainant4

(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.

5

(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)

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

would result in acceptance of the submission of the learned

counsel for the petitioners only partially. Section 143A of

the N.I.Act does not in every circumstance mandate filing

of an application. The Court trying an offence under

6

Section 138 of the N.I.Act 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

c