Order 1

Order Details: Copy of Order
Pdf Text: IN THE COURT OF METROPOLITAN MAGISTRATE, 43RD COURT,
BORIVALI, MUMBAI
C.C.NO.1177/SC/2022
ORDER BELOW APPLICATION U/SEC.143(A) OF N.I.ACT
This application is filed by the complainant under section
143-A of the Negotiable Instruments Act, 1881 for interim
compensation.
2. Briefly stated the contentions of the complainant are as
follows-
That, the accused pleaded not guilty. Thereafter, the
complainant has filed the present application for 20% interim
compensation of the cheque amount. The cheque amount is
Rs.8,64,000/-. Interim compensation of 20% of the said amount is
prayed.
3. Accused filed reply and strongly objected the application. It
is submitted that, the complainant has filed false complaint against the
accused. The accused really does not know the complainant. The
complainant’s nephew Mr.Shoaib Khan knows the complainant.
Mr.Shoaib Khan is having the business of scrap material. Accused’s
nephew has taken loan from the complainant. He was unable to repay
the said loan amount. Mr.Shoaib Khan has taken away the blank signed
cheque of the accused and handed over it to the complainant. There is
no business transaction between the complainant and the accused. On
26.07.2022 the accused has filed police complaint with Pilhar Police
Station at Nalasopara against the complainant. Therefore, it is prayed
that the application be rejected with costs.
4. After going through the application and say filed on record,
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the following points do arise for the determination of this Court. This
Court has recorded its findings thereon as follows for the following
reasons-
POINTS FINDINGS
1. Whether the complainant is entitled for Yes.
the interim compensation as contemplated
under section 143-A of the N.I.Act ?
2. What order ? Application is allowed.
R E A S O N S
AS TO POINT NOS.1 AND 2.
5. Heard Ld. Advocates for both the parties at sufficient
length.
6. It is pertinent to note that in the present matter the Plea of
the accused is recorded. Because before recording of Plea the accused
application under section 143-A of the N.I.Act is not maintainable.
Section 143-A(1)(a) is maintainable only where the accused “Pleads not
guilty” of the accusation made in the complaint. To this respect the Law
is settled by the Hon’ble Apex Court in view of its decision in the case of
Pawan Bhasin V/s. State of U.P. and another dated 07.07.2023.
7. It appears from section 143-A that for interim
compensation word is used as ‘may’. It is not mandatory. The
observations of Hon’ble Apex Court in the case of Rakesh Ranjan
Srivastav V/s. State of Jharkhand(Criminal Appeal No.741 of 2024
dated 15.03.2024) are clear to this respect.
8. It appears from the application that for discharge of his
legally enforceable liability accused has issued cheques to the
complainant. Prima-facie it appears that the complainant has adduced
evidence to this respect. At this juncture nothing is brought on record
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by accused that there was no existing liability and accused has not
issued any cheque to the complainant. Further more, there is nothing on
record as to why less than 20% compensation be given to the
complainant at this juncture.
9. As per section 118 of the N.I.Act it shall be presumed until
the contrary is proved that cheque has been drawn for the consideration
on the date mentioned thereon and as per section 139 of the N.I.Act it
shall be presumed unless the contrary is proved that the cheque has
been drawn for the discharge of legally enforceable liability.
10. It is true that the powers under section 143(A) of the
N.I.Act are discretionary in nature and such a discretion has to be
exercised judiciously. The complainant has placed on record sufficient
material to exercise such judicial discretion in the present case.
11. Accused has not brought on record anything to show that
this is not a case for grant of the interim compensation to the extent of
20% of the amount of disputed cheque. The complainant has made out
a case for directing the accused to pay 20% of total amount of disputed
cheque to him as provided under section 143-A of the Negotiable
Instruments Act. Hence, this Court answer point No.1 in the affirmative
and in answer to point No.2, this Court pass the following order-
O R D E R
1. Application is allowed.
2. The accused shall pay interim compensation of 20% of
the disputed unpaid cheque to the complainant within 60
days from the date of this order.
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3. If such interim compensation is paid, it will be subject
to the conditions laid down in Section 143-A(4) to (6) of
the Negotiable Instruments Act, 1881.
Mumbai, ( S. A. KHALANE )
Date: 10/06/2026. Metropolitan Magistrate,
43rd Court, Borivali, Mumbai.
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