NI Act: It is Not Mandatory for Magistrate to Order Payment of Interim Compensation

Vijaya Vs Shekharappa (Karnataka High Court) Legislature has cautiously worded sub-section (1) of Section 143A of Negotiable Instruments Act, 1881 not to make it mandatory in all cases where clauses (a) and (b) of sub-section (1) would empower the learned Magistrate before whom proceedings are pending consideration to award interim compensation. It is the discretion conferred, as the word used is “may”. If the order is passed, then the payment is mandatory. Therefore, the learned Magistrate who is hearing the application for interim compensation should apply his mind, record his reasons in...