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2021 (8) TMI 479

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..... erim compensation. Section 143A(5) is exception to the Section 143A(1) of the N.I. Act. Section 143A(1) empowers the order for interim compensation of at least 20% of the cheque amount to be paid within sixty days from the date of order and the same may be recovered as if it a fine under Section 421 of Cr.P.C., as per Section 143A(5) of the N.I. Act. On perusal of the order passed by the trial Court and First Appellate Court for the purpose of non payment of the interim compensation, the right of cross-examination cannot be denied by the trial Court - The First Appellate Court has also considered the aspect holding that the right of cross-examination cannot be denied. It is also pertinent to note under Section 143A(4) empowers that if th .....

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..... Heard the arguments of learned counsel for the petitioner and learned counsel for the respondent. 3. The case of the complainant is that the complainant filed a private complaint under Section 200 of Cr.P.C., for the offence punishable under Section 138 of Negotiable Instruments Act, 1881 (for short 'N.I. Act') that the cheque issued by the respondent-accused has become dishonored and returned with the endorsement stating FUNDS INSUFFICIENT and after filing the complaint by taking cognizance, the complainant filed an application under Section 143(A) of the N.I. Act., for granting interim compensation. Accordingly, the trial Court awarded 20% of the compensation and directed the respondent to deposit interim compensation of ͅ .....

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..... nd contended that the amount of compensation ordered by the trial Court shall have to be recovered in accordance with the provision of 421 of Cr.P.C., and Section 143A(5) of the N.I. Act and right of cross-examination cannot be denied. There is no error in the order passed by the trial Court or First Appellate Court in dismissing the memo. Hence, prayed for allowing the petition. 7. Having heard the arguments and on perusal of the record, admittedly, the petitioner has filed a complaint to the Magistrate as per Section 200 of Cr.P.C., and the cognizance was taken against the respondent-accused as per Section 138 of the N.I. Act. Admittedly, 20% of the cheque amount has been ordered as interim compensation as per Section 143A(1) of the N. .....

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..... note that in the same provision under Section 143A(5) empowers that the interim compensation payable under this section may be recovered as if it were a fine under section 421 of the Code of Criminal Procedure, 1973 (2 of 1974). As per Section 143A(6), the amount of fine imposed under section 138 or the amount of compensation awarded under section 357 of the Code of Criminal Procedure, 1973 (2 of 1974), shall be reduced by the amount paid or recovered as interim compensation under this section. 9. On perusal of Sections 143A(5) and (6), it clearly reveals that the amount of compensation awarded by the trial Court if not deposited by the accused, then it may be recovered as if it were fine under Section 421 of Cr.P.C., and if it is after .....

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..... further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the complainant. Such being the case, if the accused is not permitted to cross-examine the complainant, the interim order cannot be considered as the final order until completion of trial. Therefore, directing the accused to deposit 20% of the compensation though it is mandatory but it is recoverable by the complainant as if it is fine recovered under Section 421 of Cr.P.C. Therefore, I am of the view, if the accused is not deposited the interim compensation, but he cannot be denied for the purpose of cross-examination of the complainant. There is nothing to interfere in the order passed by both the Courts below. Therefore, both the C .....

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