Interim Order 14

Order Details: COPY OF ORDER
Pdf Text: Case No. 373421
O.P. Khandelwal Vs. Ravi Gupta
31.03.2023
ORDER
Vide present order, the undersigned disposing of the
application filed by the complainant U/s. 143A NI Act. The arguments
on this application have already been heard on LDOH on behalf of
the complainant. No written reply has been furnished on behalf of the
accused to the above application and the right of the accused in this
regard has already been closed vide order dt. 16.03.2023. Even no
oral arguments have been led on behalf of the accused.
It is submitted by Ld. Counsel for the complainant that
there were business transactions between the parties and that the
complainant earlier raised invoices against the accused for the
material supplied to him and that there was huge outstanding against
the accused during the year 2019 and that in order to settle those
disputes the parties have entered into a MOU dt. 18.01.2020
pursuant to which the accused had issued certain post dated
cheques to the complainant which were subsequently dishonoured
and that the cheque in question is also one of such cheque and that
the present complaint was filed upon its dishonour. It is further
submitted by Ld. Counsel for complainant that the accused has
taken contradictory stand at various stage of proceedings and that
the notice against the accused has already been framed and he has
pleaded not guilty and claimed trial and hence the requirements of
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Section 143A NI Act has been satisfied. It is also submitted that the
accused has engaged in dilatory tactics during the proceedings and
that Court has also imposed cost upon the accused and that the
conduct of the accused is relevant in deciding U/s. 143A NI Act and
hence the present application be allowed. Ld. Counsel for
complainant relies upon the judgment of Chhatisgarh High Court in
Rajesh Soni Vs. Mukesh Verma 2021 SCC Online CHH 1761 and of
Karnataka High Court in V. Krishnamurthy Vs. Dairy Classic Ice
Creams Pvt. Ltd. 2022 SCC Online Kar 1047.
Perused. Considered.
There is no dispute regarding the propositions of law laid
down in the judgments relied upon by the complainant.
Section 143(A) NI Act has been incorporated by the
legislature with the aim of reducing the undue delay in disposal of
cheque dishonour cases and also for paying interim compensation to
the complainant.
A perusal of Section 143(A)(1) NI Act shows that the
Court “may” order the interim compensation depending upon the
specific facts and circumstances of each case. The word ‘may’
herein shows that a discretion is vested in the trial Court not only in
regard to the quantum of interim compensation but also in regard to
whether the interim compensation itself be awarded in the specific
facts of the case or not. Therefore, the Court is not bound to order
interim compensation in all the cases to the complainant.
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In the case of L.G.R Enterprises Vs. P. Anbazhagan
(2019) 3 Mad Lj (Cri.) 423 the Hon’ble Madras High Court has held
that whenever the trial Court exercise its jurisdiction U/s. 143A(1) NI
Act, it shall record reasons as to why it directs the accused persons
to pay the interim compensation to the complainant and that the
burden of proof is upon the complainant to make out a case for grant
of interim compensation.
Hon’ble High Court of Delhi also in the case of J.S.B
Cargo and Freight Forwarder Pvt. Ltd. Vs. State 2021 SCC OnLine
Del 5425 has held that the provision of Section 143A NI Act is
directory in nature and cannot be termed to be mandatory to the fact
that the trial Court had to mandatorily award interim compensation
U/s. 143A NI Act in all proceedings on the mere invocation thereof
by a complainant. It was also held that award of interim
compensation U/s. 143A NI Act has to be only after providing
sufficient reasons.
Hon’ble Karnataka High Court in the case of V.
Krishnamurthy Vs. Dairy Classic Ice Creams Pvt. Ltd. 2022 SCC
Online Kar 1047 Criminal Petition No. 632/2022 has held that the
conduct of the accused is relevant while deciding the application U/s.
143A NI Act and that if the accused has been unnecessarily evading
the proceedings by seeking adjournments, consideration of the
application U/s. 143A NI Act would become imperative as the
amendment itself is introduce to compensate the payees of delay
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tactics adopted by unscrupulous drawers of cheques.
In the instant case, a perusal of record shows that the
notice against the accused has already been framed and he has
admitted his signatures on the cheque and that he has pleaded not
guilty and claimed trial. The accused has also moved exemption
applications on multiple dates of hearing and the Court has also
imposed cost upon the accused after keeping in view his dilatory
conduct. Section 143A NI Act was incorporated by the legislature to
compensate the complainant in view of this kind of dilatory conduct
itself. The Court at this stage cannot conduct a mini trial on the
aspect of liability of the accused as the presumption U/s. 139 NI Act
operates in favour of the complainant and it is to be presumed that
the cheque in question was given in discharge of legally recoverable
debt. It is a settled law that merits of the case is not to be gone into
at this stage as held by Hon’ble Delhi High Court in Suryodhan
Tyagi, proprietor of Tyagi Tent House and Anr. Vs. Tirender Sharma
decided on 13.01.2022.
A prima facie case has been made out in favour of the
complainant. No irreparable loss wold be cause to the accused if the
present application is allowed in view of the fact in the event of
acquittal, the complainant would be liable to return back the amount
to the accused alongwith interest in terms of provision of Section
143A of NI Act itself.
In view of the above position, the complainant has
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succeeded in showing existence of compelling circumstances in its
favour which warrants grant of interim compensation.
Consequently, the application is allowed and the
accused is directed to pay to the applicant / complainant a sum of
Rs. 50,000/ (Rs. Fifty Thousand Only) as interim compensation
before NDOH.
Nothing expressed herein above amounts to comment
upon the merits of the case.
Application is disposed of accordingly.
(Pankaj Rai)
M.M.05 (NI Act) NDD/RAC
31.03.2023
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