Pradeep Kumar & Others vs Govinda Beharilal Thakural

S.Vishwajith Shetty, J

Petitioners who are accused in C.C.No.13946/2019 pending on the file of XV Addl. Chief Metropolitan Magistrate, Bengaluru, for the offences

punishable under Section 138 of Negotiable Instruments Act, 1881 (for short, 'N.I.Act'), have filed this petition challenging the order dated 19.05.2020

passed under Section 143A of the N.I.Act, wherein the petitioners have been directed to deposit interim compensation at the rate of 10% of the

cheque amount by the Trial Court, within a period of 60 days from the date of the order.

Learned Counsel for the petitioner submits that the petitioners have got a good case on merits and they are not liable to pay any amount to the

complainant. He submits that the petitioner did not have any transaction with the respondent and no documents evidencing the transaction has been

produced by the complainant. He submits that without properly ascertaining the genuineness of the complaint averments, the Trial Court has erred in

passing CRL.P.681/2021 the impugned order directing the petitioners to deposit 10% of the cheque amount.

Section 143A of the N.I.Act has been introduced with an object of providing some relief to the complainant by way of interim compensation having

regard to the inordinate delay in disposal of the case filed for the offence under Section 138 of the N.I.Act. While considering the application under

Section 143A of the N.I.Act, the Trial Court is required to consider whether the requirement of Section 143A of the N.I.Act is fulfilled. The merits of

the case and the defence of the accused persons cannot be appreciated by the Trial Court at that stage. The Section itself provides that if the accused

are ultimately acquitted, the amount deposited by them shall be refunded to them or repaid to them with interest as the bank rate as published by the

Reserve Bank of India, prevalent at the beginning of the relevant financial year, within 60 days from the date of the order.

Learned Counsel for the petitioner has made a submission that having regard to prevailing Covid-19, it would be very difficult for the petitioners to

arrange for depositing the amount as ordered by the Trial Court.

From the reading of Section 143A of the N.I.Act, it is very clear that the Trial Court has the discretion to direct deposit to the extent of 20% of the

cheque amount and taking into consideration all aspects of the matter, the Trial Court has exercised its jurisdiction and has directed the petitioners to

deposit only 10% of the cheque amount, and therefore, I do not find any illegality or irregularity in the order passed by the Trial Court. Accordingly, I

decline to entertain the petition. Petition stands dismissed.