Udayveer Singh v. Ravindra Singh and others) under Section
Case Details
Neutral Citation No. - 2024:AHC:122745 HIGH COURT OF JUDICATURE AT ALLAHABAD (Sl.No.29) Court No. - 79 Case :- APPLICATION U/S 482 No. - 19265 of 2024 Applicant :- Ravindra Singh Opposite Party :- State of U.P. and Another Counsel for Applicant :- Raj Kumar Sharma Counsel for Opposite Party :- G.A. Hon'ble Anish Kumar Gupta,J.
Legal Reasoning
"22. When the court deals with an application under Section 143-A of the NI Act, 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 under sub-section (1) of Section 143-A. The presumption under Section 139 of the NI Act, by itself, is no ground to direct the payment of interim compensation. The reason is that the presumption is rebuttable. The question of applying the presumption will arise at the trial. Only if the complainant makes out a prima facie case, a direction can be issued to pay interim compensation. At this stage, the fact that the accused is in financial distress can also be a consideration. 23. Even if the court concludes that a case is made out for grant of interim compensation, the court will have to apply its mind to the quantum of interim compensation to be granted. Even at this stage, the court will have to consider various factors such as the nature of the transaction, the relationship, if any, between the accused and the complainant and the paying capacity of the accused. If the defence of the accused is found to be prima facie a plausible defence, the court may exercise discretion in refusing to grant interim compensation. 24. We may note that the factors required to be considered, which we have set out above, are not exhaustive. There could be several other factors in the facts of a given case, such as, the pendency of a civil suit, etc. While deciding the prayer made under Section 143-A, the Court must record brief reasons indicating consideration of all the relevant factors. 27. Subject to what is held earlier, the main conclusions can be summarised as follows: 27.1. The exercise of power under sub-section (1) of Section 143-A is discretionary. The provision is directory and not mandatory. The word "may" used in the provision cannot be construed as "shall". 27.2. While deciding the prayer made under Section 143-A, the court must record brief reasons indicating consideration of all relevant factors. 27.3. The broad parameters for exercising the discretion under Section 143-A are as follows: 27.3.1. 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. 27.3.2. A direction to pay interim compensation can be issued, only if the complainant makes out a prima facie case. 27.3.3. If the defence of the accused is found to be prima facie plausible, the court may exercise discretion in refusing to grant interim compensation. 27.3.4. 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." 4. In view of the aforesaid guidelines issued, learned counsel for the applicant submits that the trial court must record the reasons and must deal with different factors as has been described above in the aforesaid judgment before passing the order under Section 143-A of the N.I. Act. He further submits that the aforesaid order since is not in compliance with the aforesaid judgment of the Apex Court, is liable to be set aside by this Court. The order dated 22.04.2024 passed by the Additional Chief Judicial Magistrate, Court No. 04, Aligarh reads as under: "Case called out. Complainant and accused are present before the court with their Ld. Counsel. Ld. Counsel for complainant has moved an application u/s 143Ą NI Act seeking a direction against the accused to pay 20 percent of the cheque amount as compensation. On the other hand, accused has opposed such application by way of filing their objection. Accused has also presented copy of bills and bank statements of his firm. Heard the arguments of both the Ld. Counsels for the complainant and the accused and perused the records. Cause is sufficient. Application filed by the complainant u/s 143A NI Act is hereby allowed. Consequently, accused is hereby directed to pay 20 percent of the cheque amount to the complainant as interim compensation within 60 days from the date of this order. Put up on 28-05-2024 for cross examination." 5. From perusal of the aforesaid order, it is crystal clear that the aforesaid order passed by the Additional Chief Judicial Magistrate is not in compliance of the guidelines issued by the Apex Court in the judgment of Rakesh Ranjan Shrivastava (supra). 6. In view thereof, this Court without issuing notice to the opposite party no.2 as the same will further delay the proceedings of the complaint case, set aside the order dated 22.04.2024 with a direction to the trial court to pass a fresh order in accordance with the directions issued by the Apex Court keeping all factors into consideration as directed by the Apex Court.
Arguments
1. Heard Sri Raj Kumar Sharma, learned counsel for the applicant and Sri Brijesh Kumar Dwivedi, learned AGA for the State. 2. The instant application under Section 482 Cr.P.C. has been filed with the following prayer: "1. Quash the entire proceeding in Case Number 314 of 2019 (Udayveer Singh Vs Ravindra Singh and others) under Section 138 Negotiable Instrument Act (hereinafter referred to as the 'N.I. Act') at Police Station Gandhi Park, District Aligarh, pending before the Court of Additional Chief Judicial Magistrate, Court No. 04, District - Aligarh, II. Quash the order dated 22.04.2024 passed by the aforesaid Court upon an application moved by the Opposite Party No. 2 under Section 143 A Negotiable Instrument Act in the aforesaid case, III. It is further prayed that this Hon'ble Court may graciously be pleased to stay the proceeding of Case Number 314 of 2019 (Udayveer Singh Vs Ravindra Singh and others) under Sections 138 Negotiable Instrument Act at Police Station District Aligarh, pending before Gandhi Park, the Court of Additional Chief Judicial Magistrate, Court No. 04, District - Aligarh." 3. Learned counsel for the applicant at the outset submits that he does not want to press prayer no.1 and 3 at this stage and he is pressing only prayer no.2 with regard to the validity of the order dated 22.04.2024 whereby the applicant was directed to pay 20% of the cheque amount as compensation to the opposite party no. 2. Learned counsel for the applicant has relied upon the judgment of Apex Court in Rakesh Ranjan Shrivastava vs. State of Jharkhand and another), 2024 (4) SCC 419. The relevant portion of the aforesaid judgment reads as under, which is a guiding factor to the Magistrate concerned for passing the orders under Section 143-A of the N.I. Act:
Decision
7. With the aforesaid direction, the instant application under Section 482 Cr.P.C. is disposed of. Order Date :- 31.7.2024 Ashish Pd. (Anish Kumar Gupta,J.)