Gagan Gandhi vs Raj Kumar Sharma
2023 Latest Caselaw 1259 P&H

246(2)


      IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                     CHANDIGARH



                                               CRM-M-52906-2022 (O&M)
                                               Date of Decision: 20.01.2023


GAGAN GANDHI
                                                            ...Petitioner

                                    Versus

RAJ KUMAR SHARMA
                                                            ...Respondent

CORAM: HON'BLE MR. JUSTICE HARSH BUNGER

Present :   Mr. Gurmandeep Singh Sullar, Advocate
            for the petitioner.

            Kr. Prashant Singh Chauhan, Advocate
            for the respondent.

HARSH BUNGER, J.

Prayer in the present petition filed under Section 482 of the

Code of Criminal Procedure, 1973, is for quashing of complaint No.NI-

734-2019 dated 25.03.2019, registered under Sections 138/142 of the

Negotiable Instruments Act, 1881 titled as Raj Kumar Sharma vs Gagan

Gandhi (Annexure P-1), pending before the Court of learned Additional

Chief Judicial Magistrate, Rewari (Haryana) along with all subsequent

proceedings arising therefrom.

After arguing for some time, learned counsel for the petitioner

restricts his claim only qua order dated 08.11.2021 passed by learned

Additional Chief Judicial Magistrate, Rewari, whereby, the petitioner has

been directed to pay interim compensation to the complainant as 20% of the

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cheque amount in terms of Section 143-A of the Negotiable Instruments

Act. Said order dated 08.11.2021 reads as under :-

"Present:- Complainant in person with Sh. Bhupender Sharma, counsel.

Accused in person with Sh. Ashish Kumar, Advocate.

In pursuance of court notice, complainant present before the court and marked his presence.

An application u/s 145(2) of N.I. Act filed & an application u/s 143-A of N.I. Act to direct the accused to pay interim compensation to the complainant for 20% of the cheque amount moved by ld. Counsel for complainant. The same is hereby allowed.

At this stage, ld. Counsel for the parties, stated that there seem to be chances of settlement/compromise in this matter. Under such circumstances, the parties are directed to appear before the Mediation Centre, Rewari on 09.12.2021. The Mediation Referral Order along with the required documents be sent to the Mediation Centre and report be awaited for 09.02.2022."

Learned counsel for the petitioner contended that the

impugned order, whereby, the petitioner has been directed to pay interim

compensation to the complainant as per the provisions of Section 143(A) of

Negotiable Instruments Act, is totally non-speaking and illegal, being

passed in mechanical manner without application of mind. He further

contended that recently Delhi High Court in CRL. MC 2663 of 2021 M/s

Jsb Cargo and Freight Forwarder Pvt. Ltd v. State and another; decided

on 20.12.2021, held that provision of Section 143(A) Negotiable

Instruments Act, essentially is directory and cannot be termed as mandatory

in nature. Learned counsel further contended that it appears that the trial

Court gave the impugned direction, having the impression that the aforesaid

provision is mandatory in nature.

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In support of his contentions, learned counsel for the petitioner

relies upon judgment of this Court in Harjeet Singh vs Gagandeep Singh

(CRM-M-20918 of 2022, decided on 05.07.2022), judgment of Madras

High Court in L.G.R. Enterprises vs P. Anbazhagan (Crl. O.P. No.15438

of 2019, decided on 12.07.2019) as well as judgment of Karnataka High

Court in Smt. Vijaya vs Shekharappa and others 2022(2) Cri.CC 14.

On the other hand, learned counsel for the respondent has

supported the order dated 08.11.2021 passed by learned Additional Chief

Judicial Magistrate, Rewari, by submitting that the trial Court has rightly

granted interim compensation under Section 143-A of the Negotiable

Instruments Act; however, he does not dispute the fact that aforesaid order

dated 08.11.2021 is totally non-speaking order.

I have heard learned counsel for the parties and perused the

paper book with their able assistance.

From the perusal of impugned order dated 08.11.2021 passed

by learned Additional Chief Judicial Magistrate, Rewari, it appears that the

trial Court granted interim compensation under Section 143(A) of the

Negotiable Instruments Act just in a routine manner and there is no

application of mind as to why the said interim compensation has been

awarded. The afore-extracted order passed by the Court below does not

bear reason as to why 20% of the amount is awarded as interim

compensation. It is not that 20% has to be the interim compensation in

every case. Here again the discretion is required to be exercised by the

learned Magistrate as the interim compensation can vary from 1% to 20%

but shall not exceed 20%. The language of Section 143A being couched

with such discretion, the discretion if not exercised in a manner known to

law, becomes an arbitrary

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action.

Accordingly, in view of the afore-mentioned facts and

circumstances, order dated 08.11.2021 passed by learned Additional Chief

Judicial Magistrate, Rewari, is set aside qua the decision on application

under Section 143-A of the Negotiable Instruments Act, with a direction to

the trial Court to reconsider the issue regarding payment of interim

compensation under Section 143-A of the Negotiable Instruments Act

afresh by passing a speaking order in accordance with law.

Disposed of accordingly.

Pending application/s, if any, shall also stand disposed of.

January 20, 2023                                     (HARSH BUNGER)
gurpreet                                                 JUDGE

Whether speaking/reasoned:                Yes/No
Whether reportable:                       Yes/No





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