Interim Order 1

Order Details: Order
Pdf Text: 1 C. C. No.122/SS/2019
ORDER BELOW EXH.18
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 purchased goods from complainant and to-
wards payment they issued cheque which was dishonoured. He
further submitted that accused had earned huge profit from
his goods, however, purposefully chosen to not clear the
complainant’s dues therefore, he filed present complaint against
them. He further stated that he is entitle to 20% of cheque as
interim compensation under Section 143A of N.I. Act. Hence,
this application.
3. Accused had filed its say to the application upon
(Exh.20). It is submits that complainant has filed present
complaint under Section 138 of NI Act. It is further submitted
that evidence in chief has not been fled and trial is yet to be
start. It is also submitted that directing to pay interim
compensation is a discretionary power of this Court and not
mandatory. It is also submitted that complainant has filed
complaint by misusing the cheque to harass them and accused
are not liable to pay cheque amount. Hence, they prayed to
reject the application.
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2 C. C. No.122/SS/2019
4. Heard both sides.
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 and 3 are its directors.
Complainant in his complaint has contended that the
cheque in question was issued 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 complainant in present
case, and law laid down by the Hon’ble Bombay High Court
accused No.2 and 3 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 and 3 have
not denied that the cheque 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 following order :
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3 C. C. No.122/SS/2019
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 : 07/11/2023
Sd/-
( Shri. R.D. Dange )
Metropolitan Magistrate,
63rd Court, Andheri, Mumbai
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