Interim Order 14

Order Details: COPY OF ORDER
Pdf Text: CC NI ACT397/2023
MUDGAL CO OPERATIVE URBANTHRIFT AND CREDIT
SOCIET Vs.VINESH KUMAR/0 (Bhajanpura Circle)
24.09.2025
Present: Ms. Himani Mudgal, Ld Counsel for the complainant.
Mr. Dilshad A. Khan, Ld Counsel for the accused.
Accused in person.
ORDER
By way of this order, I shall decide the application filed by the
complainant u/s 143A of the N I Act seeking grant of interim
compensation.
Arguments were heard.
Ld. Counsel for the complainant has argued that since the
present accused has admitted the claim of the complainant in his plea of
defence and further three years have already lapsed, present application
ought to be allowed.
Per contra, Ld. Counsel for the accused has contested the same
on the ground that he has made various part payments.
Submissions heard and record perused carefully which shows
that vide the present application, the complainant seeks interim
compensation qua the cheque amount primarily on the ground of prima
facie case established by the complainant and the irregular conduct of the
accused.
Before going into merits, it would be apposite to discuss the
scope of the provision. The object behind introduction of Section 143A, NI
Act by the legislature was to reduce the undue delay in disposal of NI
cases. The power has been held to be discretionary to be exercised in light
of the facts and circumstances of each case. Legislative intent behind the
provision has to be kept in mind by the court while granting interim
compensation. Mechanical approach in granting interim compensation
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merely on the basis of fulfillment of requirements under the provision
cannot be adopted by the court. Reliance is placed upon the landmark
judgment of Rakesh Ranjan Shrivastava v State of Jharkhand & Anr,
CA No.741/2024 of the Hon’ble Supreme Court wherein the Court laid
down the following parameters for the exercise of discretion:
i. The Court will have to prima facie evaluate the merits of the case made out by the
complainant and the merits of the defence pleaded by the accused in the reply to the
application. The financial distress of the accused can also be a consideration.
ii. A direction to pay interim compensation can be issued, only if the complainant makes
out a prima facie case.
iii. If the defence of the accused is found to be prima facie plausible, the Court may
exercise discretion in refusing to grant interim compensation.
iv. If the Court concludes that a case is madeout to grant interim compensation, it will
also have to apply its mind to the quantum of interim compensation to be granted.
While doing so, the Court will have to consider several factors such as the nature of the
transaction, the relationship, if any, between the accused and the complainant, etc.
v. There could be several other relevant factors in the peculiar facts of a given case,
which cannot be exhaustively stated. The parameters stated above are not exhaustive.
In the facts of the present case, the accused has stated in his
plea of defence that he had taken a loan of Rs.2 lacs out of which
Rs.10,000/- have been paid. Further, he has admitted to repay the said
amount by May 2025. The signatures on the cheque in question are already
admitted as well as the receipt of legal demand notice. Therefore, the
complainant has been able to establish a prima facie case.
The twin requirements for the application of Section 143A i.e.
a summary/summons case and the prior framing of notice alongwith the
accused not having pleaded guilty are also satisfied in the facts of the
present case.
The completion of the trial in the present case would also take
considerable time as the DE is not being led.
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Insofar as the quantum of compensation is concerned, the
accused is directed to pay 20% of the cheque amount to the Complainant
within 30 days from today by way of bank transfer. Proof of payment shall
be filed by the Accused Person within said period, failing which accused
shall be liable for action in terms of Section 143-A (5) NI Act.
Needless to say, nothing stated herein shall tantamount to any
finding qua the merits of the trial.
Application is allowed in the above terms.
(AAKASH MOHAN SINGH)
JMFC(NI Act)/Digital Court;
North-East/KKD/24.09.2025
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