Interim Order 1

Order Details: Order
Pdf Text: 1 C. C. No.66/SS/2019
Exh.23
ORDER BELOW EXH.23
1. This is an application filed by complainant under
Section 143-A of Negotiable Instrument Act with the prayer
that accused be directed to pay 20 % of cheque amount towards
interim compensation to it.
2. Brief contention of the application :
Accused have appeared in person and plea has been
recorded. They have pleaded not guilty and seeking trial. It is
contended that considering the provision of Section 143A of the
N.I. Act, amount of compensation to the extent of 20% be
awarded to the complainant. It is next contended that great
harm, loss and prejudice will be caused to the complainant, if
relief is not granted. Hence, this application.
3. Accused had filed its say to the application upon
(Exh.25). It is submitted that the complainant had approached
before the court with unclean hand with ulterior motive to
harass the accused persons. It is further submitted that
complainant is aware that there is no claim against accused and
has fabricated false case against them based on fabricated
documents and concocted stories. It is further submitted that
there is no legally enforceable debt and liability by the accused
to the complainant. It is next submitted that present application
is not maintainable and liable to be rejected. It is submitted that
the word “may” used in the provision also indicate that
legislature has left the discretion solely to the court to try the
case and court has unbridled freedom to decide a case according
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Exh.23
to his subjective satisfaction. Accused have submitted that they
have disputed the claim by sending detailed reply to the legal
demand notice sent by complainant and complainant has kept
silence after receiving it. Hence, the contents of the reply are
deemed to have been admitted by the complainant. It is further
submitted that they have good defence on merit. They are not
liable to pay any amount to the complainant and if they are
directed to pay any compensation to complainant, then it will
be travesty of justice. Great harm and irreparable loss will be
caused to the accused, if they are direct to pay any interim
compensation. Hence, they prayed to reject the application.
4. Heard both sides at length.
5. Accused pleaded not guilty to the acquisition made
in the complaint. Section 143A of N.I. Act empowers the court
to grant interim compensation to the complainant from drawer
of the cheque. Accused No.1 appears to be a private limited
company and accused Nos.2 to 4 are its directors. It also ap-
pears that the cheques in question were drawn in the name of
by accused No.1 and signed by it’s directors. I would like to
refer judgment of Hon’ble Bombay High Court in case of Lyka
Labs Limited V/s. State of Maharashtra wherein Hon’ble
High Court has held that signatory of the cheque, authorized
by the company, is not drawer in the terms of Section 143A of
N.I. Act and cannot be directed to pay interim compensation
under Section 143A. Considering the contention made by
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Exh.23
complainant in present case, and law laid down by the Hon’ble
Bombay High Court, accused No.2 to 4 who are signatories of
cheques in question cannot be termed as a drawer in the
terms of Section 143A of N.I. Act and they cannot be directed
to pay interim compensation to the complainant. Accused
Nos.2 to 4 have not denied that the cheques belong to the
account of accused No.1 company. It will take certain time
to decide main complaint on merit. Complainant has made
out prima facie case. Till then, it is necessary to award certain
compensation to the complainant. In the result, I pass follow-
ing order :
ORDER
1) Application is partly allowed.
2) Accused No.1 is hereby directed to pay 20 % of cheque
amount to the complainant as interim compensation under
Section 143-A(1) of Negotiable Instrument Act, within 60
days from the date of this order.
3) Complainant to file undertaking that if the accused is
acquitted, he will repay the said amount to the accused
with interest at the bank rate as published by the Reserve
Bank of India prevalent at the beginning of the relevant
financial year, within 60 days from the date of the order.
Date : 23/02/2024
Sd/-
( Shri. R.D. Dange )
Metropolitan Magistrate,
63rd Court, Andheri, Mumbai
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