Dhruv Nath Singh vs State Of U.P. And Another
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Allahabad High Court

Dhruv Nath Singh vs State Of U.P. And Another on 11 July, 2025

HIGH COURT OF JUDICATURE AT ALLAHABAD
 
 


?Neutral Citation No. - 2025:AHC:110857
 
Court No. - 75
 

 
Case :- APPLICATION U/S 528 BNSS No. - 24237 of 2025
 

 
Applicant :- Dhruv Nath Singh
 
Opposite Party :- State of U.P. and Another
 
Counsel for Applicant :- Kedar Nath Mishra
 
Counsel for Opposite Party :- G.A.
 

 
Hon'ble Vikas Budhwar,J.
 

1. Heard Sri Kedar Nath Mishra, learned counsel for the applicant and Sri Indrajeet Singh Yadav, learned A.G.A. for the State.

2. This is an application under Section 528 of BNSS preferred by the applicant for quashing the impugned order dated 31.01.2025 passed by Additional Chief Judicial Magistrate Court No. 19 Deoria in Case No. 3898/2023 (Umesh Mishra Versus Dhruv Nath Singh) as well as the summoning order dated 28.08.2023 passed by Additional Civil Judge (Junior Division)/Judicial Magistrate Court No, 13 Deoria and entire proceeding of complaint case No. 3896 of 2023 (Umesh Mishra versus Dhruv Nath Singh) under section 138 N.I. Act Police Station Tarkulwan, District Deoria, pending before Additional Chief Judicial Magistrate Court No. 19 Deoria.

3. Learned counsel for the applicant has submitted that a complaint was lodged by O.P. No.2 under Section 138 of the N.I. Act on 04.03.2023 with an allegation that with respect to discharge of a liability, a cheque bearing number "646083" dated 23.12.2022 of an amount of Rs.8,50,000/- was drawn, which on presentation in bank came to be dishonoured with remarks "funds insufficient". Thereafter statutory demand notice was issued on 06.01.2023 followed by the complaint under Section 138 of N.I. Act and then the applicant came to be summoned under Section 138 of the N.I. Act on 28.08.2023. During the pendency of the aforesaid proceedings, an application came to be preferred by O.P. No.2 for according interim compensation to the tune of 20% under Section 143A of the N.I. Act which came to be contested by the applicant and the same came to be allowed by the Court of Additional Chief Judicial Magistrate Court No. 19 Deoria in Complaint Case No.3898/2023 on 31.01.2025 while according compensation to the tune of 20% being Rs.1,70,000/- of total amount Rs.8,50,000/-.

4. Questioning the said order, the applicant has filed the present application.

6. Learned counsel for the applicant has submitted that the order dated 31.01.2025 according interim compensation to the tune of 20% cannot be said to be legal, particularly in view of the fact that the same is not as per the mandate of the Hon'ble Apex Court in the case of Rakesh Ranjan Srivastava v. State of Jharkand and another: (2024) 3 S.C.R. 438. Submission is that there are certain criteria which ought to have been considered while according interim compensation under Section 143A of the NI Act that is to, prima facie, evaluate the merits of the case made out by the complainant and the merits of the defence pleaded by the accused in reply to the application, the financial distress of the accused and a direction to pay interim compensation can only be issued if the complainant makes a prima facie, and if the defence of the accused is found to be prima facie plausible the Court exercise discretion in refusing to grant compensation and if the Court concludes that the case is made out from interim compensation, it would have to apply its mind to the quantum of interim compensation to be granted while considering the nature of the transaction, the relationship, if any, between the accused and the complainant itself. Submission is that none of the said criteria had been adhered to, thus, the order dated 31.01.2025 according interim compensation be set aside.

7. Learned AGA, on the other hand, submits that the order passed is not in conformity with the judgment in the case of Rakesh Ranjan Srivastava (supra) as the parameter so enunciated and noted above and not be discussed, he submits that the order be set aside and matter be remitted back to the court below to pass a fresh order.

8. I have heard the submissions so made across the bar and perused the record.

9. The order dated 31.01.2025 passed by Additional Chief Judicial Magistrate Court No. 19 Deoria according interim compensation reads as under.-

"31.01.2025

???????? ???????? ???????? ????

??????? ?? ??????? ?????????? ?? ????????????? ???????? 07.10.2024 ? ???? ????? ?????? ?? ???? ????

???????? / ??????? ???? ????? ?????? ????????????? ???????? ???? 143? ??????? ???? ??????? ???????? 07.10.2024 ???????? ?? ??? ???? ??? ??? ???????? ??????? ?????? ?? ???? ??? ???????? ????? ??? ???????? ?? ??????? ???? 138 ?????????? ?? ????? ??? ???????? ???? ???? ???????? ?????? ???????? ?? ??? ???? ??? ??? ???????? ?????? ?? ??????? ???? ?? ??? ?? ???? ?????? ?? ???????? ??????? ??? ??? ???????? ?? ??????? ???? ?? ?? ???? ??? ???????? ?? ???????? ??? ?????? ???? ?? ???????? ??? ??????? ???? ????? ?? ????? ?? ??? ??, ??? ??? ????? ?? ???? ???????? ??? ????? ???????? ???? ??? ???? ??? ??? ?? ??? ???? ??? ??????? ?????? ???? ????????????? ??? ??? ??? ???? ?? ???? ?? ?????? ???? ??? ?? ?? ??????? ?? ??? ??? ?????? ?????? ?? 20 ??????? ????? ?????? ??????? ?? ??? ??? ???????? ?? ??????? ????

???????? / ??????? ?????? ???? ??? ?? ?????? ??? ?????? ??????? ???????? ?? ????? ???? ??? ??? ??????? ?? ???? ????????????? ?? ???????? ??????? ???????? ???? ?? ?? ?? ?????? ???????? ???? ???? ??? ???? ??? ?? ?? ??????? ?? ????????????? ?????? 07.10.2024 ???? ?? ?????? ? ????? ????? ??? ??????? ?? ?? ??? ???? ?????????? ??? ???? ??, ?? ????? ??? ? ??????? ??? ??????? ?? ??? ???? ?? ?? ??? ???? ??? ?????? ?? ?????? ???? ???? ???? ?? ??? ??? ?? ??? ??, ?? ??? ???? ?? ????? ??? ??. ???? ??? ????? ?????????? ??? ???? ???? ??? ??? ??????? ????? ????? ???? ?????? ???????? ??? ????? ???? ???? ??????? ?????? ?? ??? ???? ??? ??? ????? ?? ???? ?? ????? ???? ???? ???? ??? ???????? ?? ??????? ?? ?????? ????? ??? ?? ???????? ?? ???? ??? ?? ?? ???? ????????? ???? ??? ??? ??????? ?? ???? ??, ??? ???? ????? ?? ?? ???? ?? ????? ??? ???? ??? ???????? ??? ?? ???? ?????? ????? ?? ???? ???? ?? ??????? ???? ??? ??? ?? ???? ?? ???????? ???? ???? ?????? ??? ??? ?? ????? ?? ?? ?????? ?? ?? ??? ?? ?? ??? ?? ??? ????????? ? ??? ???? ???? ?? ????????? ??? ??????? ??? ??? ???? ?? ??????? ?? ????????????? ?????? ???? ???? ????? ??? ?? ?????? ???????? ???????? ?????? ???? ?????? ??? ??? ??? ???? ?? ???? ?? ?????? ???? ??? ?? ?? ??????? ?? ????????????? ?????? 07.10.2024 ?????? ???? ????

???? ??? ???????? ?? ?????? ?????

??????? ?? ?? ?? ???????? ????????????? ???????? ???? 143? ??????? ???? ??????? ???????? 07.10.2024 ?? ??? ?? ???????? ???? ?? ?? ??? ??? ????? ?????? ?? 20 ??????? ?????? ???????? ?? ??????? ?? ??????? ????? ???????? ?????? ???? ?????? ??? ??? ??? ???? ?? ???? ?? ??????? ?? ????????????? ?? ?????? ???? ???? ?? ???? ?? ??? ??? ??????? ???? ????? ?????? ???????? ?????? ???????? ???? 138 ?????????? ??? ??0-646083, ??? 8,50,000/- ????? ?? ??? ?????? ?? ???? ?? ???? ???????? ??? ????? ???? ??? ??? ???????? ?????? ?????? 28.08.2023 ?? ??????? ???????? ???? ?? ??? ???? ???? ??????? ???????? ??????? ??? ?? ???? ????? ?????? ?????? 04.09.2024 ?? ???????? ?? ??????????? ????? ???? ???? ??????? ?? ???? ????????????? ?? ?????? ?? ?????? ?????? ???????? ???? 143 (A) ?????????? ????? ?? ???????? ?? ????? ??? ?? ?????? ?? 20 ??????? ?????? ??????? ?? ?????? ??????? ????? ???? ?? ????? ?? ??? ??? ???? 143 (A) ?????????? ?? ?????????? ?? ?????? ???????? ?????? ?? ????? ?????????? ?????? ?? ???? ?? ??????? ?? ??? ?? ?????? ?? 20 ??????? ?????? ?????? ?? ??????? ?? ???? ???? ??? ??????? ?? ???? ????????????? ??? ??? ???? ?? ?? ?? ????? ?? ??? ???? ??? ???? ????? ???? ???? ????? ?? ???? ???????? ??? ??????? ?? ???? ?????? ?? ???? ???????? ?? ?????? ??????? ????? ???? ??? ?????? ????????? ?? ?????? ?? ????? ??????? ??????? ????? ?????? ?? ??? ??? ?? ??? ??? ?? ?? ?????? ?? ???? ???? ????? ?? ???????? ???? ??? ??? ??? ??? ?????? ?????? ???? 143 (A) ?????????? ?? ???????? ??????? ?? ???? ???? ??????? ?????? ?????? ???? ???? ????????? ?????

??? ??????? ????? ?????? ??? ??????? ?? ???? ?? ???????? ?? ?? ?? ?? ?? ???????? ? ??????? ?? ????????????? ??? ???? ??? ???? ???????? ?????? ???? ???? ??? ????? ?? ????????????? ???????? 07.10.2024 ???????? ??? ??????? ???? ???? ????? ???

????

???????? ? ??????? ???? ????? ?????? ???????? ????????????? ???????? ???? 143 (A) ?????????? ???????? 07.10.2024 ??????? ???? ???? ??? ???????? ???????? ???? ?? ?????? ???? ???? ?? ?? ?? ??? ??? ????? ?????? ??0-8,50,000/- ????? ?? 20 ??????? ?????? 1,70,000/-????? ???? ?????? ?????? ?? ???? ?? 60 ??? ?? ????? ???????? ? ??????? ???? ????? ?? ??? ???? ????????? ???? ???????? ?????? ??????? ?????? 28.02.2015 ?? ??? ???"

10. A perusal of the said order would go to show that the parameters so enunciated in the case of Rakesh Ranjan Srivastava (supra) is not being considered that there is no consideration to the financial distress and the quantum of compensation which is to be paid. In Rakesh Ranjan Srivastava (supra), the following was observed as under.-

"19. Subject to what is held earlier, the main conclusions can be summarised as follows: a. The exercise of power under sub-section (1) of Section 143A is discretionary. The provision is directory and not mandatory. The word "may" used in the provision cannot be construed as "shall."

b. While deciding the prayer made under Section 143A, the Court must record brief reasons indicating consideration of all relevant factors.

c. The broad parameters for exercising the discretion under Section 143A are as follows:

i. The Court will have to prima facie evaluate the merits of the case made out by the complainant and the merits of the defence pleaded by the accused in the reply to the application. The financial distress of the accused can also be a consideration.

ii. A direction to pay interim compensation can be issued, only if the complainant makes out a prima facie case.

iii. If the defence of the accused is found to be prima facie plausible, the Court may exercise discretion in refusing to grant interim compensation.

iv. If the Court concludes that a case is made out to grant interim compensation,it will also have to apply its mind to the quantum of interim compensation to be granted. While doing so, the Court will have to consider several factors such as the nature of the transaction, the relationship, if any, between the accused and the complainant, etc. v. There could be several other relevant factors in the peculiar facts of a given case, which cannot be exhaustively stated. The parameters stated above are not exhaustive."

11. Since the parameter so enumerated in Rakesh Ranjan Srivastava (supra) has not been considered and the exercise is lacking, thus, this Court has no option but to set aside the order dated 31.01.2025.

12. Accordingly, the order dated 31.01.2025 passed by Additional Chief Judicial Magistrate Court No. 19 Deoria in Case No. 3898/2023 (Umesh Mishra Versus Dhruv Nath Singh) as well as the summoning order dated 28.08.2023 passed by Additional Civil Judge (Junior Division)/Judicial Magistrate Court No, 13 Deoria, pending before Additional Chief Judicial Magistrate Court No. 19 Deoria is set aside. Matter stands remitted back to the court below to pass fresh order in light of the judgment in Rakesh Ranjan Srivastava (supra) for facilitation in speedy disposal. The certified copy of the order be furnished before the court below by 25.07.2025. The court below shall take endeavour to pass orders strictly in accordance with law without granting unnecessary adjournment particularly in view of the fact that learned counsel for the applicant, as per the instructions of his client, has disclosed that he shall not seek any unnecessary adjournment.

13. With the above observation, the application stands disposed of.

Order Date :- 11.7.2025

N.S.Rathour

(Vikas Budhwar, J)