Interim Order 1

Order Details: Order
Pdf Text: 1 C. C. No.525/SS/2019
Exh.17
ORDER BELOW EXH.17
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 :
Complainant has filed present complaint under
Section 138 of N.I.Act against accused for dishonour of cheque.
Accused appeared before the Court and pleaded not guilty. It is
contended that issuance of cheque and signature on the cheque
is not disputed by the accused. It is further submitted that as per
decision by the Hon’ble Apex Court in the case of Damodar S.
Prabhu V/s. Sayyed Babalal, if just after service of summons,
accused appears and is ready to compound the matter, no fine
would be imposed, and if the accused makes an application
before the Magiatrate at a subsequent stage, 10% of the cheque
amount to be deposited as a condition for compounding and if
an applicatin for compounding is made in the Hon’ble Sessions
Court or the Hon’ble High Court, such compounding may be
allowed on the condition that accused to pay 15% of the cheque
amount by way of costs. It is next contended that by virtue of
recently inserted Section 143A of the N.I. Act the legislature has
made it clear that unscrupulous drawers should be made to pay
the interim compensation to the complainant. It is further
submitted that complainant has made out case for raising
presumptions under Section 118 and 139 of N.I. Act. It is lastly
contended that in order to compensate the complainant, it is
just, proper and reasonable to direct the accused to pay interim
compensation. Hence, this application.
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2 C. C. No.525/SS/2019
Exh.17
3. Accused No.1 opposed the application by filing his
reply at (Exh.20). It is submitted that he has denied the liability
and he is having ample opportunity to disprove the claim of
comlainant by defending the present complaint. It is next
submitted that he is having good case on merit. It is further
submitted that Section 143A of N.I. Act is not mandatory and
same is discretionary as per the judgment of the Hon’ble
Bombay High Court in the decision of Ashwin Ashokrao Karokar
V/s. Laxmikant Govind Joshi. Hence, he prayed to reject the ap-
plication.
4. Heard both sides at length.
5. Accused No.1 has pleaded not guilty to the
accusation made in the complaint. Prima facie offence under
Section 138 of N.I. Act is made out against accused No.1.
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 com-
plainant. In the result, I pass following order :
ORDER
1) 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.
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3 C. C. No.525/SS/2019
Exh.17
2) Complainant to file undertaking that, if, the accused No.1
is acquitted, he will repay the said amount to the accused
No.1 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 : 07/08/2024
Sd/-
( Shri. R.D. Dange )
Judicial Magistrate, First Class
63rd Court, Andheri, Mumbai
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