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2022 (4) TMI 1247 - HC - Indian LawsDishonor of Cheque - Seeking recovery of the interim compensation awarded to the petitioner, from the estate of a deceased accused - accused died before the conclusion of the trial - acquittal of the accused - Section 143A of NI Act - HELD THAT:- By operation of Section 70 of the Indian Penal Code, 1860 any unpaid fine may be levied at any time within six years after the passing of the sentence, and the death of the accused does not discharge from the liability any property which would, after his death, be legally liable for his debts - The combined reading of the relevant provisions makes it clear that where the compensation has been directed to be paid upon conclusion of a proceeding under Section 138 of the Negotiable Instruments Act, 1881, the legal heirs who have inherited the estate of the deceased are liable to repay the fine or compensation amount when an application under Section 421 of the Code of Criminal Procedure, 1973, has been filed. In the case M. ABBAS HAJI VERSUS T.N. CHANNAKESHAVA [2019 (9) TMI 1497 - SUPREME COURT] the Supreme Court ultimately allowed the application filed by the legal heirs of the deceased to prosecute his appeal - The position of law will be, however, different in a case where the interim compensation has been granted under Section 143A of the Negotiable Instruments Act, 1881. Section 143A (1) of the Negotiable Instruments Act, 1881, speaks of payment of interim compensation. Section 143A (1) is independent of Section 143A (4) of the Negotiable Instruments Act, 1881. A bare reading of Section 143A (4) makes it clear that in the event the drawer of the cheque is acquitted, the interim compensation paid in terms of Section 143A (1) has to be repaid together with the prevalent bank interest - The order of interim compensation is, therefore, dependent on the outcome of the trial. There is no finality attached to such interim order of compensation and no right is crystallized in favour of the complainant by dint of such interim order of compensation. The order of interim compensation, which is passed in the aid of final compensation, will cease to exist when the trial comes to an end due to the death of the accused since in such eventuality there cannot be any scope to adjudicate the innocence or the guilt of the accused in the trial. If in case of death of an accused the compensation awarded under Section 138 of the Negotiable Instruments Act, 1881 can be recovered from the estate of a deceased accused, but an interim compensation awarded under Section 143A of the said Act cannot be recovered from the estate of a deceased accused, who died before the conclusion of the trial. Revisional application dismissed.
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