Interim Order 1

Order Details: Order
Pdf Text: 1 C. C. No.4725/SS/2018
Exh.12
ORDER BELOW APPLICATION
UNDER SECTION 143A OF N.I. ACT
1. This is an application filed by complainant u/s.
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. It is the contention of the application that the
complainant has filed present complaint u/s.138 of N.I.Act. It is
contended that trial of the case is likely to take considerable
time and accused is bound to enjoy wrongfully the amount of
dishonoured cheque during such period with a view to cause
wrongful gain to himself and wrongful loss to the complainant.
It is further contended that complainant has already suffered
undue loss on account of dishonour of cheque and non-payment
of amount by accused. It is next contended that it is just,
proper and reasonable to direct the accused to pay interim
compensation of 20% of the cheque amount. Hence, this
application.
3. Accused has filed his reply at (Exh.13) and objected
the application by submitting that complainant has used the se-
curity cheque without prior intimation. It is further submitted
that provision of Section 143A of N.I. Act is not mandatory and
it is subject to discretionary power of the Court. It is next sub-
mitted that no any wrongful loss and undue loss is mentioned
in a detailed manner in the main application. Hence, he prayed
to reject the application.
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2 C. C. No.4725/SS/2018
Exh.12
4. Heard advocate for both sides at length.
5. Accused pleaded not guilty to the accusation made
in the complaint. Plea of accused was recorded and thereafter
present application came to be filed.
Prima facie offence under
Section 138 of N.I. Act is made out against him. Accused has not
denied that the cheque issued in favour of complainant belongs
to bank account of his proprietorship firm. 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, I
pass following order :
ORDER
1) Application is allowed.
2) Accused is hereby directed to pay 20 % of 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, 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 : 29/08/2025
Sd/-
( Shri. M. S. Budhwant )
Judicial Magistrate, Virst Class
63rd Court, Andheri, Mumbai
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