Case Law Details
Rajesh Soni Vs Mukesh Verma (Chhattisgarh High Court)
Conclusion: The Hon’ble High Court in present facts of the case after interpreting the word ‘may’ have held that granting of 20% compensation under Section 143A of the Negotiable Instruments Act, 1881 is totally valid as the said provision is not discretionary in nature.
Held: The petitioner has filed petition under Section 482 of Cr.P.C. challenging the order passed by Judicial Magistrate First Class, wherein learned trial court has allowed the application filed u/s 143A of the Act and has directed the petitioner to pay 20% of the cheque amount, (The same order was rejected in Criminal Revision). The petitioner contended before Hon’ble High Court that grant of interim compensation is not mandatory and it is discretionary under Section 143A of the Act.
The Hon’ble High Court observed that Section 143A of the Act, 1881 stipulates that under certain stages of proceedings under Section 138 of the Act, 1881, the Court may order for the drawer to make payment upto 20% of the cheque amount during the pendency of the matter. Further after placing its reliance on Objects and Reasons, it was observed that the word ‘may’ used in Section 143A of the Act is beneficial for the complainant because the complainant has already suffered for mass deed committed by the accused by not paying the amount, therefore, it is in the interest of the complainant as well the accused if the 20% of the cheque amount is to be paid by the accused, he may be able to utilize the same for his own purpose, whereas the accused will be in safer side as the amount is already deposited in pursuance of the order passed under Section 143A of the Act, 1881. When the final judgment passed against him, he has to pay allowances on lower side. Section 143A of the Act, 1881 has been drafted in such a manner that it secures the interest of the complainant as well as the accused, therefore, it is quite clear that the word ‘may’ may be treated as ‘shall’ and it is not discretionary but of directory in nature.
The Hon’ble High Court placed its reliance on the Judgment of Bachahan Devi & another Vs. Nagar Nigam, Gorakhpur & another, (2008) 12 SCC 372 wherein it was held as under”
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