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2019 (7) TMI 1561 - HC - Indian LawsDishonor of cheque - adjustment of the amount already recovered under the SARFAESI Act towards directions of the appellate court to deposit certain percentage of the compensation or fine under Section 148 of the NI Act - non-deposit of the amount as directed under Section 148 of the Negotiable Instrument Act, 1881 - cancellation of bail. Adjustment of amount - HELD THAT:- Section 143A of the NI Act enables the trial courts to award interim compensation in the cases arising out of dishonor of the cheques. It is provided that the interim compensation shall be paid within sixty days from the date of the order under sub-section (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 - Another relevant provision is in sub-section (5) of Section 357 of the Code of Criminal Procedure providing that while awarding compensation in any subsequent civil suit relating to the same matter, the Court shall take into account any sum paid or recovered as compensation under this section - Section 421Cr.P.C. deals with the procedure for execution of the fine. It provides that the Court can adopt any of the procedure prescribed in Section 421(1) Cr.P.C.. First option with the court is to issue a warrant for the levy of the amount by attachment and sale of any movable property belonging to the offender. Second option is to issue a warrant to the Collector of the district, authorising him to realise the amount as arrears of land revenue from the movable or immovable property, or both, of the defaulter. Thus, the interim compensation or compensation ordered by the Court while dealing with criminal case is liable to be accounted for in any subsequent civil suit or proceedings. Even otherwise, this court did not find that there is any prohibition or impediment in ordering adjustment. The intention of the legislature is to introduce provision for speedy recovery of some part of the amount representing the cheque amount as an interim measure. It is not the intention of the legislature that if some part of the cheque amount has already been recovered in a separate proceedings, may be civil proceedings, the amount ordered to be deposited as interim compensation or fine shall still liable to be deposited in the appeal or the trial Court. This Court is of the view that the facts of each case particularly when the amount under cheque and recovery proceedings under any other provision is same and interconnected, the Courts are well within their power to order adjustment. Whether on non-deposit of the amount as directed under Section 148 of the Negotiable Instrument Act, 1881, bail granted to the appellant is liable to be automatically/consequently liable to be cancelled? - HELD THAT:- Sections 143A and Section 148 of the NI Act, it is nowhere, specifically provided that if the payment as ordered has not been deposited, the bail granted shall be liable to be consequently cancelled. Section 143 do provide that recovery can be made of such defaulted amount as if it is a fine under Section 421 Cr.P.C., therefore, obviously during the trial of the case, the Court should not cancel the bail already granted on this ground alone. The offence under Section 138 of the NI Act is bailable - Default in payment of certain percentage of compensation or fine, would not ipso facto result in cancellation of the bail. There are long series of judgments passed by the Hon'ble Supreme Court that normally conditions for grant of bail cannot be made onerous for the accused. Once the legislature or framers of the NI Act have not made any specific provision for automatic cancellation of the bail granted by the trial court or the appellate court on account of default of payment of interim compensation or certain percentage of compensation or fine, it would not be appropriate to hold it otherwise - answered in favour of the petitioners. The amount recovered under the SARFAESI Act shall be deemed to have been adjusted towards 20% of the compensation as ordered by the Court - Appeal allowed.
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