Advocates:
Advocate Appeared:
For the Petitioner(s): Mr. Shailesh Madiyal, Adv. Ms. Rakhi M., Adv. Mr. Mrigank Prabhakar, AOR Ms. Sakshi Banga, Adv. Mr. Vinayaka Pandit, Adv. Mr. Rajan Parmar, Adv. Mr. Vaibhav Sabharwal, Adv. Mr. Sudhanshu Prakash, Adv.
For the Respondent(s): Mr. Anand Sanjay M. Nuli, Adv. Mr. Dharm Singh, Adv. Mr. Agam Sharma, Adv. Mr. Suraj Kaushik, Adv. Ms. Akhila Wali, Adv. Ms. Nandini Pandey, Adv. M/s. Nuli & Nuli, AOR

Key Points: - (!) Section 143A powers and conditions for directing interim compensation in NI Act cases. - (!) Interim compensation is limited to 20% of the cheque amount as per subsection (2). - (!) Interim compensation must be paid within 60 days (extendable by up to 30 days for sufficient cause). - (!) Interim compensation can be recovered as if it were a fine under Section 421 CrPC. - (!) Denying the accused the right to cross-examine on account of non-payment is not permissible; statutory method must be followed. - (!) The Court directed restoration of the complaint to permit cross-examination and deposit of Rs. 1,40,000 as interim compensation. - (!) Principle: when a statute prescribes a method to exercise power, other methods are not acceptable; cross-examination cannot be foreclosed by interim compensation orders. - (!) Appellant deposited Rs. 3,50,000 in this Court following order to do so. - (!) The appellate court allowed the appeal due to denial of cross-examination and restoration of proceedings. - (!) High Court’s and Trial Court’s prior orders were set aside for illegality regarding cross-examination rights.

What is the legality of depriving an accused of cross-examination rights for non-payment of interim compensation under Section 143A in NI Act cases?

What is the proper method for recovery of interim compensation under Section 143A(5) and whether it can foreclose cross-examination rights?

What are the consequences and directives when an accused fails to deposit interim compensation while exercising rights to cross-examine?