22 Aug 2026 12:41 PM

Dishonour of Cheque -- Interim Compensation Under Section 143-A -- Not to be granted as a matter of course

(i) Negotiable Instruments Act, 1881, Ss.138, 143-A -- Dishonour of Cheque -- Interim Compensation Under Section 143-A -- This provision does not mandate grant of interim compensation as a matter of course. (ii) Negotiable Instruments Act, 1881, Ss.138, 143-A -- Dishonour of Cheque -- Exercise of Discretion Under Section 143-A -- The Court must disclose reasons while exercising discretion to grant interim compensation under this provision. (iii) Negotiable Instruments Act, 1881, Ss.138, 143-A -- Dishonour of Cheque -- Grant of Interim Compensation on Recorded Findings -- Findings that the cheque, dishonour memo, and statutory notice stood proved, that the accused admitted issuance of the cheque and his signature while disputing only the underlying liability, that there were repeated defaults in appearance, and that permission to travel abroad raised a possibility of delay in proceedings, are factors directly relevant to exercise of discretion under this provision and not extraneous considerations. An order recording such findings is not a non-speaking order or one suffering from non-application of mind.

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