CT Cases 5332/2020

YOGENDER PANWAR Vs. RAM KISHORE

22.12.2021

Present:- Sh. Abhimanyu Rana ld. counsel for complainant with complainant.
Ms. Sonia, Ld. Counsel for the accused with accused.

Arguments on application U/s 143 A NIAct has been heard. Vide a

separate order of even dated, the present application u/s 143 A NI Act is disposed off.
Put up for recording of Accused u/s 313 Cr.PC on 06.01.2022 at 12.00
Noon.

(SONIKA)
MM -05 (NI ACT) (South), Saket Courts,
New Delhi /22.12.2021
 CT Cases 5332/2020

YOGENDER PANWAR Vs. RAM KISHORE

22.12.2021

Present:- Sh. Abhimanyu Rana ld. counsel for complainant with complainant.
Ms. Sonia, Ld. Counsel for the accused with accused.

1. Vide this order, I shall dispose off the application filed by the
complainant u/s 143A NI Act for the grant of interim compensation.
2. Brief facts of the present complaint, as per the complainant, are that the
complainant has advanced a loan of Rs. 1,35,285/- to the accused in the month of
July'2019. Thereafter, in discharge of his liability the accused has handed over two
cheques 191468 dated 25.11.2019 amounting to Rs. 1,00,000/- and cheque no. 191469
dated 28.12.2019 amounting to Rs. 35,285/- drawn on Indian Bank, Saket branch in favour
of the complainant. However, upon presentation the same was dishonored due to reason
“Drawers signature differs” vide memo dated 07.02.2020. Thereafter, a demand notice
dated 22.02.2020 was served upon the accused. Since no payment was made after the
service of legal demand notice, the complainant was constrained to file the present
case.
3. The notice under section 251 Cr.P.C. was served on the accused person
on 20.10.2020 to which he pleaded not guilty and claimed trial. Thereafter, the
present application was filed by the complainant for grant of interim compensation.
The complainant has prayed for interim compensation upto 20% of the cheque
amount primarily on the ground that as the accused has pleaded not guilty to the
accusations made in the complaint and claimed trial, therefore the essential
ingredients as contemplated in section 143 A NI Act stands fulfilled in the case. On
the line of these arguments, he has prayed to allow the present application.
4. Thereafter, a written reply has been filed on behalf of the accused,
thereby, opposing the present application. The present application has been opposed
 by the Ld. counsel for the accused by stating that the present compliant is based on
false and fabricated facts. She further submitted that the cheques in issue have been
handed over as security for chit fund transction. She further submitted that the same
transaction is illegal. She further submitted that the accused has no liability towards
the complainant. It has been further argued that in a present case accused has very
sound defence. In line of these arguments, he has prayed to reject this application.
5. Arguments heard. Application, reply and other record perused.
6. Section 143A of NI Act was added by way of amendment in 2018, which
come into force on 01.09.2018 and confers discretion upon the Court to order the
drawer of the cheque to pay interim compensation to the complainant in a summons
case where he pleads not guilty to the acquisition made in the complaint. Relevant
part of section 143A reads as under:
“(1)Nothwithstanding anything contained in the Code of Criminal
Procedure, 1973 (2 of 1974), the Court trying an offence under
section 138 may order the drawer of the cheque to pay interim
compensation to the complainant
(a) in a summary trial or a summons case, where he pleads
not guilty to the accusation made in the complaint; and
(b) in any other case, upon framing of charge.
(2) The interim compensation under subsection (1) shall not exceed
twenty per cent of the amount of the cheque.
(3) The interim compensation shall be paid within sixty days from
the date of the order under subsection (1), or within such further
period not exceeding thirty days as may be directed by the Court on
sufficient cause being shown by the drawer of the cheque.”
7. Thus, as per section 143 A NI Act, for grant of interim compensation, the first
requirement is that it should be a summary / summon trial case and further the
second requirement is that the notice should have been framed and accused should
not have been pleaded guilty in the matter. Thus, after the accused enters his
appearance and notice is framed and he has not pleaded guilty then the court is fully
 empowered to award interim compensation to the complainant which shall not
exceed 20% of the cheque amount.
8. For deciding the present application, it is necessary to examine the legislative
intention behind the insertion of this provision. This provision was introduced in the
Act for speedy disposal of dishonour of cheque cases and to check delay tactics
adopted by unscrupulous drawer. The object behind introduction of the provisions of
section 143A N I Act by the legislature to reduce the undue delay in disposal of
cheque dishonour cases and to pay interim compensation to the complainant. The
statement of Objects and Reasons of the amendment is reproduced below:
“ The Negotiable Instruments Act, 1881 (the Act) was enacted to
define and amend the law amending to Promissory Notes, Bills of
Exchange and Cheques. The said Act has been amended from time to
time so as to provide, inter alia, speedy disposal of cases relating to
the offence of dishonour of cheques. However, the Central
Government has been receiving several representations from the
public including trading community relating to pendency of cheque
dishonour cheques. This is because of delay tactics of unscruplous
drawers of dishonoured cheques due to easy filing of appeals and
obtaining stay on proceedings. As a result of this, injustice is caused
to the payee of a dishonoured cheque who has to spend considerable
time and resources in court proceedings to realize the value of the
cheque. Such delays compromise the sanctity of cheque transactions.
It is proposed to amend the said Act with a view to address the issue
of undue delay in final resolution of cheque dishonour cases so as to
provide relief to payees of dishonoured cheques and to discourage
frivolous and unnecessary litigation which would save time and
money. The proposed amendments will strengthen the credibility of
cheques and help trade and commerce in general by allowing lending
 institutions, including banks, to continue to extend financing to the
productive sectors of economy.”
9. It is a settled proposition of law that interim compensation u/s 143A N I Act should
generally be granted to the complainant if the accused pleads not guilty and claims
trial. Special reasons should be present if interim compensation is not allowed.
Reference can be taken from the decision of Hon'ble Supreme Court, in the case of
Surinder Singh Deswal & Ors vs. Virender Gandhi Appeal no. 1936 of 2019
decided on 08.01.2020 wherein while interpreting section 148 N I Act (which
provides power to the appellate court to order interim compensation pending appeal
against conviction u/s 138 N I Act), the Hon'ble Court has held that even though the
amended section 148 N I Act used the word “may”, it is generally to be construed as
a rule or “shall” and not as an exception for which the court has to assign special
reasons for directing interim compensation.
10. The provision enshrined in section 143 A which enables the Magistrate to award
interim compensation to the complainant pending trial is in pari materia with the
power of appellate court to award interim compensation post conviction u/s 148 NI
Act. Therefore, principle propounded by the Hon'ble Supreme Court in Surender
Deswal case (Supra) is applicable even in an application filed u/s 143A NI Act. Thus,
Interim compensation has to be granted to the complainant as a rule and not as
exception.
11. Moreover, at this stage defence of the accused cannot be taken into consideration.
Reference can be taken from the judgment passed by ld. ASJ, East, Karkardooma
courts, Delhi, in Madhu Verma vs. Manish Sharma, CR No.168/19, wherein Ld.
ASJ has categorically held as follows:

“10.It is further clear from the perusal of the provision of 143A NI

Act that only aforesaid two requirements are to be fulfilled and at the
time of awarding the interim compensation, court is not required to
consider the strength of defence of the accused as legislature has not
contemplated the same in the provision of section 143A NI Act.
 It is also clear from the perusal of section 143A of NI Act that the
Court can proceed to award interim compensation after the necessary
requirements have been fulfilled and the defence raised by the
accused is not to be considered at that stage and court is not to get
influenced with the defence of the accused while granting the interim
compensation. The legislature has laid down the complete procedure
in section 143A of NI Act itself for grant of the compensation. The
interest of accused has also been very well protected, as in case, the
accused is acquitted, the complainant is bound to return the interim
compensation amount received by him with interest at the prevalent
bank rate published by RBI for those financial years.”
12. In addition to these, as per Section 139 NI Act, presumption runs in favour of the
complainant even before commencement of trial. This presumption includes that the
cheque in question is issued for the discharge for any debt or other liability either
whole or in part. This presumption is itself sufficient to notify and quantify that the
accused owes liability to deposit the interim compensation.
13. Since, provision related to interim compensation was inserted in NI Act to protect
the interest of complainant; this court is of the view that no special reason is present
as on today for rejecting the present application for interim compensation.
14. Therefore, in view of the above, the present application is allowed.
15. Considering the facts and circumstances of the present case and the arguments
advanced by both the parties, Accused is directed to make the payment of 20% of
the amount of cheques in question to the complainant as interim compensation
within 60 days from today.
16. Application stands disposed off accordingly.
17. Nothing stated herein, amounts to an observation on the merits of the case.

(SONIKA)
MM -05 (NI ACT) (South), Saket Courts,
New Delhi /22.12.2021