Allahabad High Court
Shashi Kala Gupta vs State Of U.P. And Another on 18 July, 2025
HIGH COURT OF JUDICATURE AT ALLAHABAD
?Neutral Citation No. - 2025:AHC:116449
Court No. - 75
Case :- APPLICATION U/S 528 BNSS No. - 25193 of 2025
Applicant :- Shashi Kala Gupta
Opposite Party :- State of U.P. and Another
Counsel for Applicant :- Balbeer Singh
Counsel for Opposite Party :- G.A.
Hon'ble Vikas Budhwar,J.
1. Heard Sri Balbeer Singh, learned counsel for the applicant and Sri Vikas Sharma, learned State Law Officer for the State.
2. In view of the order, which is being proposed to be passed today, notices are not being issued to O.P. No.2.
3. This is an application under Section 528 of BNSS preferred by the applicant for quashing the impugned order dated 10.06.2025 passed by Additional Chief Judicial Magistrate, Court No. 4, Agra in complaint case no 25090 of 2023, (Ravi Garg vs Shashi Kala Gupta) under section 138 N.I. Act, Police station Kotwali, Agra by which Additional Chief Judicial Magistrate, Court No. 4, Agra allowed the application under section 143A Negotiable Instrument Act filed by complainant/Opposite party no. 2 in Complaint case no.25090 of 2023 (Ravi Garg Vs. Shashi Kala Gupta).
4. The case of the applicant is that a complaint was preferred by O.P. No.2 on 22.09.2023 under Section 138 of N.I. Act with an allegation that with respect to discharge of a liability, applicant had drawn a cheque bearing number "140522" dated 04.08.2023 of an amount of Rs.11,61,448/-, which on presentation in the bank came to be dishonoured on 05.08.2023, a statutory demand notice issued on 19.08.2023 followed by a complaint on 22.09.2023. The applicant came to be summoned on 22.01.2024 under Section 138 of N.I. Act. Thereafter an application under Section 143A of N.I. Act came to be preferred by O.P. No.2 on 05.02.2025 for according 20% interim compensation under Section 143-A of the N.I. Act, which came to be objected by applicant on 24.03.2025 and the said application came to be allowed on 10.06.2025 by the Court of Addl. Chief Judicial Magistrate, Court No.4, Agra.
5. Questioning the order dated 10.06.2025 the present application has been preferred.
6. Learned counsel for the applicant has submitted that the order dated 10.06.2025 according interim compensation to the tune of 20% cannot be sustained 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, case and if the defence of the accused is found to be prima facie plausible, the Court exercises discretion in refusing to grant compensation and if the Court concludes that the case is made out for 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 10.06.2025 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. 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."
10. Since the parameter so enumerated in Rakesh Ranjan Srivastava (supra) has not been considered, thus, this Court has no option but to set aside the order dated 10.06.2025.
11. Accordingly, the order dated 10.06.2025 passed by Additional Chief Judicial Magistrate, Court No. 4, Agra in complaint case no 25090 of 2023, (Ravi Garg vs Shashi Kala Gupta) under section 138 N.I. Act, Police station Kotwali, Agra by which Additional Chief Judicial Magistrate, Court No. 4, Agra 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 stated that the appellant shall not seek any unnecessary adjournment.
12. With the above observation, the application stands disposed of.
Order Date :- 18.7.2025
N.S.Rathour
(Vikas Budhwar, J)
