Dishonour of Cheque -- Award of Interim Compensation Without Recorded Reasons -- Power under Section 143-A discretionary, not automatic-- Award set aside
(i) Negotiable Instruments Act, 1881, Ss.138, 143-A -- Dishonour of Cheque -- Nature of Power to Award Interim Compensation -- The power to award interim compensation under Section 143-A of the Act is discretionary and not automatic or mandatory in every case. (ii) Negotiable Instruments Act, 1881, Ss.138, 143-A -- Dishonour of Cheque -- Duty to Record Reasons -- While adjudicating an application under Section 143-A of the Act, the Magistrate is required to record reasons while directing payment of interim compensation-- Not done in present cas-- Award set aside (iii) Negotiable Instruments Act, 1881, Ss.138, 143-A -- Dishonour of Cheque -- Determination of Quantum of Interim Compensation -- The quantum of interim compensation is not fixed and may extend up to twenty percent of the cheque amount. Where the statute permits a range from one to twenty percent, fixation of any particular figure, such as ten percent, must be supported by clear and reasoned justification -- Not done in present cas-- Award set aside (iv) Negotiable Instruments Act, 1881, Ss.138, 143-A -- Dishonour of Cheque -- Stage for Grant of Interim Compensation -- A court trying an offence under Section 138 of the Act may award interim compensation to the complainant at a preliminary stage, either in a summary trial or summons case where the accused pleads not guilty, or in any other case upon framing of charge. The provision contemplates compensation even before conclusion of trial to address delay and provide immediate relief.
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