Case Note & Summary
The petitioner, Himanshu Gupta, was the accused in a complaint under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) filed by the respondent, V. Narayana Reddy, arising from dishonour of cheques issued by the petitioner. During the pendency of the proceedings in CC No.2024/2020 before the XII Additional Chief Metropolitan Magistrate, Bengaluru, the Magistrate suo motu passed an order on 07.10.2021 directing the petitioner to deposit 20% of the cheque amount under Section 143-A of the NI Act, without any application from the complainant and without issuing notice or affording an opportunity of hearing to the accused. Aggrieved, the petitioner filed a criminal petition under Section 482 of the Code of Criminal Procedure, 1973 (CrPC) seeking quashing of that order. The High Court heard the petitioner's counsel; the respondent was served but remained unrepresented. The Court observed that the Magistrate had acted without jurisdiction by passing the order suo motu and without following principles of natural justice. The Court held that Section 143-A of the NI Act does not empower the Magistrate to direct interim compensation without notice and hearing. Consequently, the impugned order was quashed, and the matter was remitted back to the trial court for fresh consideration after providing an opportunity of hearing to the accused. The petition was allowed.
Headnote
A) Criminal Procedure - Negotiable Instruments Act - Section 143-A - Interim Compensation - Suo Motu Order Without Hearing - The Magistrate passed an order directing the accused to deposit 20% of the cheque amount under Section 143-A of the Negotiable Instruments Act, 1881 without any application by the complainant and without notice or opportunity of hearing to the accused. The High Court held that such an order violates principles of natural justice and cannot be sustained. The order was quashed and the matter remitted for fresh consideration after hearing the accused. (Paras 5-8)
Issue of Consideration
Whether a Magistrate can suo motu direct an accused to deposit 20% of the cheque amount under Section 143-A of the Negotiable Instruments Act, 1881 without issuing notice and affording an opportunity of hearing to the accused.
Final Decision
The High Court allowed the petition, quashed the order dated 07.10.2021 passed by the XII Additional Chief Metropolitan Magistrate, Bengaluru in CC No.2024/2020, and remitted the matter back to the trial court for fresh consideration after providing an opportunity of hearing to the accused.
Law Points
- Section 143-A of Negotiable Instruments Act
- 1881
- interim compensation
- principles of natural justice
- right to be heard
- suo motu order without notice
- quashing under Section 482 CrPC
