Interim Order 1

Order Details: Order
Pdf Text: 1
IN THE COURT OF JUDICIAL MAGISTRATE FIRST CLASS
44TH COURT, ANDHERI, MUMBAI.
C.C.No.3646/SS/2018
Mr. Shantilal Bhawarlal Jain ….. Complainant
Vs.
Mr. Ramesh Rajaram Salvi ….. Accused
ORDER ON APPLICATION UNDER SECTION 143 A OF N.I.ACT.
(Exh.No.12)
(Passed on 24/02/2026)
1. The complainant filed this application under section 143(A)
of the Negotiable Instruments (Amendment) Act 2018 and thereby
sought the interim compensation @ 20% of the cheque amount on the
ground that the accused appeared and he pleaded not guilty.
2. Per contra, the accused filed the say and resisted the claim
on the ground that the complainant has not adduced any evidence and
the power under section 143 (A) of the Negotiable Instrument Act are
discretionary. Thus, the accused prayed to reject the application.
3. Having perused the record, I heard the learned advocates
for both the sides. Following points are formulated for my
determination.
SR.N
O.
POINTS FINDINGS
1] Whether the complainant is entitled
for interim compensation during the
pendency of the trial?
Affirmative
2] What order? The application is
allowed as per final
order.
-- 1 of 4 --
2
REASONS
4. At the outside, it is pertinent to note that this is a criminal
complaint filed under Section 138 of the Negotiable Instruments Act.
This is a summons case. It was filed on 11/09/2018. In pursuance of
the process issued under Section 204 of Cr. P.C., the accused appeared
before the Court. The accused did not plead guilty and claimed further
trial.
5. Section 143 (A) of the Negotiable Instruments Act
empowers the Court to order the drawer of the cheque to the interim
compensation to the complainant if the drawer pleads not guilty to the
allegations made in the complaint which is a summary trial or summons
case. It is settled that the compensation amount shall not exceed 20%
of the amount of the cheque in dispute.
6. In the present case on hand, the complainant alleged that
the cheque issued by the accused to discharge the legal liability was
dishonoured and therefore, it had no option to initiate the legal action
against the accused by filing the complaint under Section 138 of the
Negotiable Instruments Act. According to the complainant, it not only
suffered monitory loss but also sustained mental agony due to the
illegal acts committed by the accused. Hence, the complainant
company has been constrained to file this interlocutory application
alongwith the petition under Section 138 of the Negotiable Instruments
Act.
7. On the other hand, the accused denied the transaction
mentioned in the complaint and submitted that the case is false. Thus, it
prima facie appears that there is a debatable issue which needs to be
tried. In fact, the trial will take its own time. It appears that the
accused evaded service of summons for long time. So also while giving
the reply to this application, the accused have nowhere specifically
-- 2 of 4 --
3
denied the signature made on the cheque in dispute. Moreover, the
application is supported by the affidavit and the process came to be
issued against the accused after considering the material placed on
record. Thus, it appears that the prima-facie case is made out against
the accused.
8. It appears that the case is pending since last 7 years and the
accused did not make positive attempts to settle the matter after his
appearance before the Court. Thus, there is sufficient material placed
on record to proceed further with this matter. In such circumstances,
having regard to the settled provisions of Section 143 (A) of the
Negotiable Instruments Act, the complainant is entitled to have the
interim compensation. In this regard, I am guided by the ratio laid
down by the Hon'ble Delhi High Court in the case of M/s.J.C.B. Cargo
and Fright Forwarder Pvt. Ltd., V/s. State and Ors.,
(Crl.M.C.2663/2021) wherein it is held that
Section 143 (A) of the
Negotiable Instruments Act is a directory provision rather than the
mandatory one.
9. In the case of Surinder Singh Deswal @ Colonel SS Deswal
and Ors V/s. Virender Gandhi (Criminal Appeal No.917944 of 2019
(Arising out of Slp(Criminal)No.49484975/2019), the Hon'ble Supreme
Court of India held that the accused is liable to deposit the interim
compensation under Section 143 (A) of the Negotiable Instruments Act
of cheques amount before the Court in favour of complainant.
10. In view of the discussion noted above, I have come to the
conclusion that the complainant has satisfied the ingredients as
contemplated under Section 143 (A) of the Negotiable Instruments Act.
Resultantly, I record my finding in affirmative for Point No.1 and
proceed to pass the following order:
-- 3 of 4 --
4
ORDER
i) The application filed under section 143(A) of the
Negotiable Instruments (Amendment) Act 2018 is
hereby allowed.
ii) The accused is directed to pay/deposit 20% amount of
the cheque in question as the interim compensation to
the complainant under section 143(A) of the
Negotiable Instruments (Amendment) Act 2018 within
60 days from the date of passing this order.
iii) The complainant shall furnish undertaking that in case
of acquittal of the accused, it shall return the interim
compensation within 60 days with the prevailing bank
rate interest to the accused.
iv) The learned advocates for both the sides shall take note
of this order and shall expedite the trial.
Sd/-
( Sujitkumar C. Tayde )
Date : 24.02.2026 Judicial Magistrate First Class,
44th Court, Andheri, Mumbai.
-- 4 of 4 --