Interim Order 16

Order Details: COPY OF ORDER
Pdf Text: 74 CC NI ACT 4144/2023	74 CC NI ACT 4144/2023
SHWETA JAIN Vs. NAND LAL GOYAL	SHWETA JAIN Vs. NAND LAL GOYAL
20.08.2026
Present: Sh.Deepak Sharma, Ld. Counsel for complainant.
Sh.Bharat Bhardwaj, Ld. Counsel for accused
through video conferencing.
Sh. Sagar, Ld. Counsel for accused in person.
Accused is absent.
Today, certain additional documents intended to be
relied upon by the complainant have been filed on record. Copy
supplied.
Brief oral submissions heard on behalf of accused.
Put up for orders at 4.30 PM.
(ABHINAV SINGH)
JMFC-01/NW/Rohini
20.08.2026
At 4.30 PM
ORDER
1. An application u/s 143A NI Act filed on behalf of
the complainant wherein prayer has been made to direct the
accused to pay interim compensation to the complainant is
pending consideration which shall be decided vide this order.
Contention of the parties
2. Brief facts as stated by the complainant in the
complaint are that the accused approached the complainant for
buying plastic granules, and later business relations developed
between the parties wherein the complainant started supplying
goods to the accused and used to raise bills/ invoices. It is
alleged that a total balance of Rs. 89,75,286/- became
Contd..2/-
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outstanding against the accused and the accused issued the
cheques in question towards the part payment of the aforesaid
liability.
3. It is thus prayed that the application for grant of
interim compensation of 20% of the cheque amount be allowed.
4. Per contra, the accused has argued that no case for
grant of interim compensation is made out as there is a huge
discrepancy in the invoices placed on record by the complainant
and the corresponding purchase orders. It is further argued that
the accused did not receive goods from the complainant and that
the complainant has raised bogus invoices against the accused
w.r.t. which the accused has also raised complaint before the
GST Department. It is thus, prayed that the application may be
dismissed.
5. Heard. Record perused.
5.1. Section 143A of the NI Act is reproduced below for
ready reference:
Section 143A: Power to direct interim compensation.
“143A. (1) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973, the Court trying an offence under section 138 may order
the drawer of the cheque to pay interim compensation to the complainant—
(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.
(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
Contd..3/-
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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 1974).
(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.”
Interpretation of the provision
6. Grant of relief of interim compensation under
Section 143A NI Act, brought to the Statute book with
prospective effect from 01.09.2018, aims at providing some
relief to the payee/complainant by compensating the
complainant who has to spend significant amount of time and
energy in the court to recover the money due to him. The
provision removes the mischief of delaying tactics of
unscrupulous drawers of the dishonored cheques and reduces
the undue delay in disposal of cheque dishonor cases.
7. In
LGR Enterprises Vs. P. Anbazhagan decided by
Hon’ble High Court of Madras on 12.07.2019 it was observed
that the application u/s 143 A NI Act should be considered by
the court on a case to case basis and any decision must be
supported by cogent reasons. Further in Rakesh Ranjan
Shrivastava
Versus State of Jharkhand and Another 2024 SCC
OnLine SC 309, the Hon’ble Apex court has laid down certain
guidelines for deciding an application U/S 143A NI Act. The
Contd..4/-
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- 4 -
relevant paragraph is reproduced below as follows: -
“
22. Subject to what is held earlier, the main conclusions can be summarized as
follows:
a. The exercise of power under sub-section (1) of Section 143A is discretionary.
The provision is directory and not mandatory. The word “may” used in the provi-
sion cannot be construed as “shall.”
b. While deciding the prayer made under Section 143A, the Court must record
brief reasons indicating consideration of all relevant factors.
c. The broad parameters for exercising the discretion under Section 143A are as
follows:
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 made out 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 com-
plainant, 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 exhaus-
tive.”
Finding
8. Now, in the facts of the present matter, the accused
has admitted his signatures on the cheques in question, and has
also admitted his address upon the legal demand notice. Thus,
there arises a presumption of liability in favour of the
complainant. Moreover, at the time of framing of Notice u/s 251
CrPC, the accused admitted that he used to purchase goods fro
the complainant, however, he also stated that no goods were
Contd..5/-
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supplied by the complainant. It is important to observe that the
complainant has also placed on record print out of certain
emails, wherein, the accused admitted the existence of
transactions between the parties. Further, as far as the
genuineness of the invoices and the supply and the factum of
delivery of goods is concerned, the same can be decided only
after evidences are led by the parties in the matter.
9. Accordingly, in light of the legal and factual
position as discussed above in the preceding paragraphs,
prima
facie case, for grant of interim compensation is made out against
the accused at this stage and the application is accordingly
allowed.
10. Considering the overall circumstances, the
presumption of liability and the defense raised by the accused,
he is directed to pay interim compensation to the complainant
to the tune of 15 per cent of the cheque amount i.e. Rs.
4,69,050/-.
11. The complainant is entitled to get the interim
compensation within 60 days subject to filing of an indemnity
bond stipulating that he would be liable to indemnify the
accused in terms of Section 143-A (4) of NI Act.
12. Accordingly, application stands disposed of.
13. Put up for CE now on 03.12.2026.
(ABHINAV SINGH)
JMFC-01/NW/Rohini
20.08.2026
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73 CC NI ACT 4092/2023	73 CC NI ACT 4092/2023
SHWETA JAIN Vs. NANDLAL GOYAL	SHWETA JAIN Vs. NANDLAL GOYAL
PS (North Rohini)	PS (North Rohini)
20.08.2026
Present: Sh.Deepak Sharma, Ld. Counsel for complainant.
Sh.Bharat Bhardwaj, Ld. Counsel for accused
through video conferencing.
Sh. Sagar, Ld. Counsel for accused in person.
Accused is absent.
Mr. Gaurav Kanojia, Erstwhile Ahlmad in the Ld.
Transferor Court in person.
Today, certain additional documents intended to be
relied upon by the complainant have been filed on record. Copy
supplied.
Further, the Notice u/s 251 CrPC framed qua the
accused on 27.11.2024 has been filed on record. The same has not
been signed by the accused, however, Digital Signatures of Ld.
Transferor Court are present over it.
Brief oral submissions heard on behalf of accused.
Put up for orders at 4.30 PM.
(ABHINAV SINGH)
JMFC-01/NW/Rohini
20.08.2026
At 4.30 PM
ORDER
1. An application u/s 143A NI Act filed on behalf of
the complainant wherein prayer has been made to direct the
accused to pay interim compensation to the complainant is
pending consideration which shall be decided vide this order.
Contd..2/-
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- 2 -
Contention of the parties
2. Brief facts as stated by the complainant in the
complaint are that the accused approached the complainant for
buying plastic granules, and later business relations developed
between the parties wherein the complainant started supplying
goods to the accused and used to raise bills/ invoices. It is
alleged that a total balance of Rs. 89,75,286/- became
outstanding against the accused and the accused issued the
cheques in question towards the part payment of the aforesaid
liability.
3. It is thus prayed that the application for grant of
interim compensation of 20% of the cheque amount be allowed.
4. Per contra, the accused has argued that no case for
grant of interim compensation is made out as there is a huge
discrepancy in the invoices placed on record by the complainant
and the corresponding purchase orders. It is further argued that
the accused did not receive goods from the complainant and that
the complainant has raised bogus invoices against the accused
w.r.t. which the accused has also raised complaint before the
GST Department. It is thus, prayed that the application may be
dismissed.
5. Heard. Record perused.
5.1. Section 143A of the NI Act is reproduced below for
ready reference:
Contd..3/-
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- 3 -
Section 143A: Power to direct interim compensation.
“143A. (1) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973, the Court trying an offence under section 138 may order
the drawer of the cheque to pay interim compensation to the complainant—
(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.
(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 1974).
(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.”
Interpretation of the provision
6. Grant of relief of interim compensation under
Section 143A NI Act, brought to the Statute book with
prospective effect from 01.09.2018, aims at providing some
relief to the payee/complainant by compensating the
complainant who has to spend significant amount of time and
energy in the court to recover the money due to him. The
provision removes the mischief of delaying tactics of
unscrupulous drawers of the dishonored cheques and reduces
the undue delay in disposal of cheque dishonor cases.
Contd..4/-
-- 8 of 11 --
- 4 -
7. In
LGR Enterprises Vs. P. Anbazhagan decided by
Hon’ble High Court of Madras on 12.07.2019 it was observed
that the application u/s 143 A NI Act should be considered by
the court on a case to case basis and any decision must be
supported by cogent reasons. Further in Rakesh Ranjan
Shrivastava
Versus State of Jharkhand and Another 2024 SCC
OnLine SC 309, the Hon’ble Apex court has laid down certain
guidelines for deciding an application U/S 143A NI Act. The
relevant paragraph is reproduced below as follows: -
“
22. Subject to what is held earlier, the main conclusions can be summarized as
follows:
a. The exercise of power under sub-section (1) of Section 143A is discretionary.
The provision is directory and not mandatory. The word “may” used in the provi-
sion cannot be construed as “shall.”
b. While deciding the prayer made under Section 143A, the Court must record
brief reasons indicating consideration of all relevant factors.
c. The broad parameters for exercising the discretion under Section 143A are as
follows:
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 made out 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 com-
plainant, 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 exhaus-
tive.”
Contd..5/-
-- 9 of 11 --
- 5 -
Finding
8. Now, in the facts of the present matter, the accused
has admitted his signatures on the cheques in question, and has
also admitted his address upon the legal demand notice. Thus,
there arises a presumption of liability in favour of the
complainant. Moreover, at the time of framing of Notice u/s 251
CrPC, the accused admitted that he used to purchase goods fro
the complainant, however, he also stated that no goods were
supplied by the complainant. It is important to observe that the
complainant has also placed on record print out of certain
emails, wherein, the accused admitted the existence of
transactions between the parties. Further, as far as the
genuineness of the invoices and the supply and the factum of
delivery of goods is concerned, the same can be decided only
after evidences are led by the parties in the matter.
9. Accordingly, in light of the legal and factual
position as discussed above in the preceding paragraphs,
prima
facie case, for grant of interim compensation is made out against
the accused at this stage and the application is accordingly
allowed.
10. Considering the overall circumstances, the
presumption of liability and the defense raised by the accused,
he is directed to pay interim compensation to the complainant
Contd..6/-
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- 6 -
to the tune of 15 per cent of the cheque amount i.e. Rs.
3,92,092/-.
11. The complainant is entitled to get the interim
compensation within 60 days subject to filing of an indemnity
bond stipulating that he would be liable to indemnify the
accused in terms of Section 143-A (4) of NI Act.
12. Accordingly, application stands disposed of.
13. Put up for CE now on 03.12.2026.
(ABHINAV SINGH)
JMFC-01/NW/Rohini
20.08.2026
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