Interim Order 1

Order Details: Order
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IN THE COURT OF JUDICIAL MAGISTRATE FIRST CLASS,
44TH COURT, ANDHERI, MUMBAI.
C.C.No.3786/SS/2018
Mr. Rajiv Rajaram Kashyap ….. Complainant
Vs.
M/s. Quadra Infra LLP and Ors., ….. Accused
ORDER ON APPLICATION UNDER SECTION 143 A OF N.I.ACT
(Passed on 05/08/2025)
1. The complainant filed this case under section 138 of the
Negotiable Instruments Act wherein he alleged that the chequea which
had been issued by the accused to dishcharge the legal liability was
dishonoured with the endorsement payment stopped by the drawer.
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 cheques amount on the ground
that the accused persons appeared and they pleaded not guilty.
2. Per contra, the accused persons have not filed their say on
the application filed by the complainant.
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
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2] What order? The application is
allowed as per final
order.
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 21/09/2018. In pursuance of
the process issued under Section 204 of Cr. P.C., the accused persons
appeared before the Court. The accused persons 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 cheques 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 cheques in dispute.
6. In the present case on hand, the complainant alleged that
the cheques issued by the accused to discharge the legal liability were
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 persons. 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
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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
denied the signature made on the cheques 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 4 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 cheque 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.
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Resultantly, I record my finding in affirmative for Point No.1 and
proceed to pass the following order:
ORDER
i) The application filed under section 143(A) of the
Negotiable Instruments (Amendment) Act 2018 is
hereby allowed.
ii) The accused No.1 to 3 are directed to pay/deposit 20%
amount of the cheques 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 : 05.08.2025 Judicial Magistrate First Class,
44th Court, Andheri, Mumbai.
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