The court affirmed that a Magistrate's order under Section 143A of the NI Act must be supported by substantial reasoning, which was present in this case.

O R D E R

Petitioner challenges the order dated 08.04.2024 in CMP No.328/2024 in CC No.1311/2021. The impugned order is issued under Section 143A of the Negotiable Instruments Act, 1881 (hereinafter referred to as NI Act), directing the petitioner to deposit an amount equivalent to 20% of the cheque amount within 60 days from the date of order.

2. When the matter came up for consideration on 07.05.2024, this Court initially stayed the impugned order for three weeks which was being extended till date.

3. I have heard Sri.Boby George, the learned counsel for the petitioner, Sri.Anil George, the learned counsel for the respondent, and Sri.Noushad K.A., the learned Public Prosecutor.

4. Though the counsel for the petitioner vehemently contended that the impugned order does not provide any reason for directing the deposit of 20% under Section 143A of the NI Act. However, on a perusal of the impugned order, it is revealed that a substantial reasons have been given by the learned Magistrate to issue the direction under of the NI Act. It is specifically mentioned that the total amount due from the complainant under a loan for Rs.84,85,000/- (Rupees Eight-Four Lakhs Eighty-Five Thousand only) was Rs.32,74,802/- (Rupees Thirty-Two Lakhs Seventy-Four Thousand Eight Hundred and Two only) and a cheque was issued in repayment of the same. After finding that no possible explanation has been furnished by the accused justifying the reason for issuance of a cheque, the learned Magistrate has proceeded to direct 20% of the cheque amount to be deposited pending the trial of the cases. On an appreciation of the contentions raised, I do not find any perversity in the impugned order, bearing in mind the purpose of of the NI Act Statute which cannot be ignored.

Hence, I find no merit in this Crl.M.C. and it is dismissed.