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2022 (10) TMI 1068 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - discharge of existing debt or not - subject matter of the impugned complaint were stale or not - initiation of prosecution on the basis of these cheques - Section 138 of NI Act - HELD THAT:- The issuance of a number of cheques by the petitioner/accused in favour of the respondent/ complainant has to be considered as a bundle of facts giving rise to a cause of action. If one of the facts alleged is not found to be correct, it does not make the whole complaint false nor does it defeat the cause of action that has arisen in favour of the respondent/ complainant against the petitioner/accused. Thus, merely because one of the cheques, which is subject matter of the impugned complaint, had become stale before its presentation for encashment would not offer a ground for quashment of the impugned complaint as a whole. However, the impugned complaint has to be restricted only to the cheques that were valid as on the date of their presentation for encashment. This aspect of the matter has to be borne in mind by the learned trial Magistrate while trying the complaint. Grant of interim compensation - HELD THAT:- It appears that the learned Magistrate has inadvertently skipped to change the date in the order and while announcing the order on 29.07.2021, the date has been recorded as 23.07.2021 - This has resulted in confusion in actual date of the impugned order. It appears to be an inadvertent error and not a deliberate one. For this inadvertent error, the impugned order is not rendered illegal. A Court trying a complaint for offence under Section 138 of NI Act has discretion to order the drawer of the cheque to pay interim compensation to the complainant. This amount of compensation has not to exceed 20% of the amount of the cheque. Thus, grant of interim compensation is a discretionary power which has to be exercised by a Magistrate trying a complaint under Section 138 of NI Act and such order has to be based on reason and logic - Although no guidelines for grant of interim compensation have been laid down in Section 143-A of the NI Act, yet it is a settled law that whenever a discretionary power is to be exercised by a Court, the same has to be exercised on well-recognized principles supported by reasons. The court has to spell out the reasons for grant of interim compensation in favour of the complainant and it has also to justify in its order with reasons the quantum of interim compensation that is being awarded by him as the said quantum can vary from 1% to 20% of the cheque amount. The learned Magistrate has, after narrating the allegations made in the complaint, simply awarded the interim compensation of Rs.5,30,000/, which constitutes 20% of the total cheque amount, in favour of the complainant. The order impugned is devoid of any reasons and no discussion is made in the impugned order as to why interim compensation is being awarded. Simply narration of allegations made in the complaint does not make an order under Section 143-A of the NI Act a reasoned one. The fact that the learned Magistrate has included even the amount of stale cheque while calculating the cheque amount shows non-application of mind on his part. Therefore, the said order is not sustainable in law. Petition allowed in part.
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