Negotiable Instruments Act, 1881, Section 138, 143A -- Dishonour of cheque - Order to pay 20% of cheque amount as compensation - Order passed mechanically without any application of mind and/or otherwise recording the reasons as to why accused is directed to pay interim compensation - Impugned order set aside...........
Negotiable Instruments Act, 1881, Section 138, 143A -- Dishonour of Cheque - Provision of S.143-A of the Act is directory and not mandatory - Word "may" used in the provision cannot be construed as "shall."(Para 19(a)..........
Negotiable Instruments Act, 1881, Section 138, 143A -- Dishonour of cheque - Interim compensation - While deciding the prayer made u/s 143-A of the Act, Court must record brief reasons indicating consideration of all relevant factors...........
Negotiable Instruments Act, 1881, Section 143A -- Interim compensation - Broad parameters for exercising the discretion u/s 143-A of the Act are as follows: (i) Court will have to prima facie evaluate the merits of the case and merits of the defence; (ii) Financial distress of accused can also be a consideration; (iii) A direction to pay interim compensation can be issued,..........
Negotiable Instruments Act, 1881, Section 138, 143A, Criminal Procedure Code, 1973, Section 421 -- Dishonour of cheque - Interim compensation - Recovery of - Recourse can be taken to S.421 Cr.P.C for recovery of interim compensation - For recovery of interim compensation, immovable or movable property of accused can be sold by Collector...........
Negotiable Instruments Act, 1881, Section 138, 143A -- Dishonour of cheque - Interim compensation - Complaint filed prior to introduction of S.143-A of the Act - Since application of S.143-A of the Act was held to be prospective in nature, trial Court committed error in directing payment of interim compensation - Order of interim compensation quashed...........
Negotiable Instruments Act, 1881, Section 138, 143A, Criminal Procedure Code, 1973, Section 397 -- Dishonour of cheque - Order passed u/s 143-A of N.I. Act - Revision before Sessions Court against such an order is maintainable, as order passed u/s 143-A of N.I Act is intermediate order and not interlocutory order...........
Negotiable Instruments Act, 1881, Section 138, 143A -- Dishonour of cheque - Interim compensation - Reasons for allowing maximum compensation of 20% not given - Without there being any reason to award maximum compensation, order cannot be considered to be passed after due application of mind - Impugned order set aside - Matter remitted for decision afresh...........
Negotiable Instruments Act, 1881, Section 138, 143A -- Dishonour of cheque - Interim compensation - It is only where accused "pleads not guilty" of accusation made in complaint that interim compensation u/s 143-A(1) of the Act can be granted...........
Negotiable Instruments Act, 1881, Section 138, 143A -- Dishonour of cheque - Interim compensation - Granted at the stage when accused answered the summons and not after plea of accused was entered - Interim compensation can be granted only where accused "pleads not guilty" - Impugned order set aside - It is open to accused to seek appropriate relief, including u/s 143-A of..........
