Case Note & Summary
The petitioner, Shashikumar, was the accused in a complaint filed by the respondent, Rajkumar, under Section 138 of the Negotiable Instruments Act, 1881, for dishonour of a cheque. The complaint was filed on 15.05.2018 before the II Additional Civil Judge and JMFC at Bidar (C.C.No.1542/2018). On 10.01.2019, the complainant filed an application under Section 143A of the N.I. Act seeking interim compensation. The trial court allowed the application on 22.04.2019, directing the accused to deposit 10% of the cheque amount as interim compensation. The accused filed a revision petition (Crl.R.P.No.38/2019) before the Additional District and Sessions Judge at Bidar, which was dismissed on 11.07.2022, confirming the trial court's order. Aggrieved, the accused filed the present petition under Section 482 of the Code of Criminal Procedure, 1973, seeking to set aside both orders. The High Court heard the petitioner's counsel, Mahadev S. Patil, while the respondent remained absent despite service. The court noted that the trial court had acted within its powers under Section 143A of the N.I. Act, which allows for interim compensation up to 20% of the cheque amount. The order of 10% was reasonable and not excessive. The revisional court had correctly confirmed it. The High Court found no illegality, irregularity, or abuse of process warranting interference under Section 482 CrPC. Accordingly, the petition was dismissed.
Headnote
A) Negotiable Instruments Act - Interim Compensation - Section 143A - The court considered the validity of an order directing the accused to deposit 10% of the cheque amount as interim compensation in a complaint under Section 138 of the Negotiable Instruments Act, 1881. The trial court had allowed the complainant's application under Section 143A, and the revisional court confirmed it. The High Court upheld the order, finding no illegality or irregularity. (Paras 1-4)
B) Criminal Procedure Code - Inherent Powers - Section 482 - The petition under Section 482 CrPC challenged the interim compensation order. The High Court held that the order was within the powers of the trial court under Section 143A of the N.I. Act and did not warrant interference under Section 482 CrPC. (Paras 1-4)
Issue of Consideration
Whether the order directing the accused to deposit 10% of the cheque amount as interim compensation under Section 143A of the Negotiable Instruments Act, 1881 is legal and proper.
Final Decision
The High Court dismissed the petition, upholding the orders of the trial court and revisional court directing the petitioner/accused to deposit 10% of the cheque amount as interim compensation under Section 143A of the Negotiable Instruments Act, 1881.
Law Points
- Section 143A of Negotiable Instruments Act
- 1881 provides for interim compensation
- Section 482 of Code of Criminal Procedure
- 1973 for inherent powers of High Court
- Interim compensation is discretionary but not arbitrary
- 10% of cheque amount is reasonable interim compensation
Case Details
2022 LawText (KAR) (09) 19
Criminal Petition No.200994/2022
Shashikumar S/o. Shamrao Police Patil
Rajkumar S/o. Nagshetti Gadgi
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Nature of Litigation
Criminal petition under Section 482 CrPC challenging orders directing interim compensation under Section 143A of N.I. Act in a cheque dishonour case.
Remedy Sought
Petitioner/accused sought to set aside the interim order dated 22.04.2019 passed by the II Addl. Civil Judge and JMFC at Bidar in C.C.No.1542/2018 directing deposit of 10% cheque amount as compensation, and the order dated 11.07.2022 passed by the Addl. District and Sessions Judge at Bidar in Crl.R.P.No.38/2019 confirming the same.
Filing Reason
The petitioner/accused was directed to pay 10% of the cheque amount as interim compensation under Section 143A of N.I. Act, which he challenged as illegal.
Previous Decisions
The trial court allowed the complainant's application under Section 143A on 22.04.2019. The revisional court dismissed the revision on 11.07.2022, confirming the trial court order.
Issues
Whether the order directing the accused to deposit 10% of the cheque amount as interim compensation under Section 143A of the Negotiable Instruments Act, 1881 is legal and proper.
Submissions/Arguments
Petitioner's counsel argued that the respondent/complainant filed a complaint under Section 138 of N.I. Act on 15.05.2018 and later filed an application under Section 143A on 10.01.2019 seeking interim compensation, which was allowed by the trial court.
Ratio Decidendi
The order directing interim compensation under Section 143A of the Negotiable Instruments Act, 1881 is within the powers of the trial court and does not warrant interference under Section 482 of the Code of Criminal Procedure, 1973, as there is no illegality or irregularity.
Judgment Excerpts
Heard Sri. Mahadev S.Patil, the learned counsel for the petitioner.
Learned counsel for the petitioner argued that respondent herein is the complainant and he has filed a complaint under Section 138 of Negotiable Instruments Act, 1881, against this petitioner before the Trial Court on 15.05.2018.
Accordingly, the learned JMFC directed the petitioner/accused to pay 10% of the cheque amount as interim compensation within a period of 60 days.
Procedural History
The respondent/complainant filed a complaint under Section 138 of N.I. Act on 15.05.2018 before the II Addl. Civil Judge and JMFC at Bidar (C.C.No.1542/2018). On 10.01.2019, the complainant filed an application under Section 143A of N.I. Act for interim compensation. The trial court allowed the application on 22.04.2019, directing the accused to deposit 10% of the cheque amount. The accused filed a revision petition (Crl.R.P.No.38/2019) before the Addl. District and Sessions Judge at Bidar, which was dismissed on 11.07.2022. The accused then filed the present petition under Section 482 CrPC before the High Court.
Acts & Sections
- Negotiable Instruments Act, 1881: 138, 143A
- Code of Criminal Procedure, 1973: 482
