2022 (5) TMI 575 - PATNA HIGH COURT - Indian Laws

Head Note / Extract:
Dishonor of Cheque - recovery of interim compensation as land revenue - public demand or not - Whether an order for payment of interim compensation under the Negotiable Instrument Act can be enforceable under the Bihar & Orissa Public Demands Recovery Act, 1914 as a public demand? - HELD THAT:- Section 143A of the NI Act under sub- section (5) specifically states that interim compensation payable under this Section is recoverable as a fine under Section 421 of the Code of Criminal Procedure. Section 421 (1) (b) provides for issuance of warrant to the Collector to realize amounts as arrears of land revenue from movable and immovable properties of said defaulter. Further, clause 3 of Schedule I of the Recovery Act states that any money realizable as arrear of land revenue by process authorized for said purpose shall be deemed a public demand under Section 3 of the Act. The interim compensation so ordered under Section 143A of the NI Act is recoverable as a fine under Section 421 of Cr.P.C. which then, as shown from the above discussion, clearly falls under the definition of ‘public demand’. The petitioner’s contention of non-applicability of the Recovery Act, therefore, necessarily has to be negated. Once it is held that the interim compensation ordered under the NI Act falls within the ambit of Schedule I of the Recovery Act, realization thereunder cannot be stopped. The learned Court below was correct in issuing an order under Section 143A of the NI Act for recovery of interim compensation as land revenue - petition disposed off.