Order 1

Order Details: Order
Pdf Text: 1 C. C. No.370/SS/2019
Exh.28
ORDER BELOW EXH.28
1. This is an application filed by complainant under
Section 143-A of Negotiable Instrument Act (in short N.I. Act)
for seeking interim compensation.
2. Complaint has been filed under Section 138 of N.I.
Act against accused. It is contended that accused appeared
before the Court and pleaded not guilty. It is next contended
that as per provision of Section 143A of N.I. Act, the Court is
empowered to direct the accused to pay interim compensation
to the complainant. Hence, it has prayed that accused may be
directed to pay interim compensation of 20% of disputed
cheque amount to it.
3. Accused has resisted the application by filing his re-
ply at (Exh.29). He has submitted that the cheque in question
does not represent any legally enforceable debt or liability and it
was never issued in discharge of any dues. It is next submitted
that the provision of Section 143A of N.I. Act is discretionary in
nature and not mandatory. Hence, he prayed to dismiss the
application.
4. Perused record. Heard both sides at length.
5. From perusal of record it appears that accused has
pleaded not guilty to the accusation 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 has not denied that the cheque issued in favour of
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2 C. C. No.370/SS/2019
Exh.28
complainant belongs to his bank account. Section 143A of N.I.
Act empowers the Court to grant interim compensation to the
complainant from drawer of the cheque. It will take certain
time to decide main complaint on merit. Till then, it is necessary
to award certain compensation to the complainant. In the result,
following order is passed:
ORDER
1) Application is allowed.
2) Accused is hereby directed to pay 20 % of disputed cheque
amount to the complainant as interim compensation
under Section 143A(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, it 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 : 17/04/2026
( D. P. Kasat )
Judicial Magistrate, First Class
63rd Court, Andheri, Mumbai
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