AVTAR SINGH Vs. KARNESH

JUDGEMENT

(1.) Instant petition has been filed for quashing/setting aside of order dtd. 5/6/2025 passed by the Court of learned Judicial Magistrate Ist Class, Ellenabad in case No. NACT-62/2021 titled as 'Karnesh vs. Avtar Singh' whereby Ld. JMIC, Ellenabad has directed the petitioner to pay interim compensation to the tune of 20% of the cheque amount without considering whether the case of the petitioner falls within exception or not.

(2.) Brief facts of the present case are that the complainant filed a complaint under Sec. 138 of the NI Act alleging that the petitioner borrowed Rs.9,00,000.00 on 20/1/2020 and, in discharge of liability, issued cheque No. 785905 dtd. 1/2/2021 drawn on Punjab National Bank. The cheque was returned unpaid with remarks "Funds Insufficient" vide memo dtd. 3/2/2021, leading to the present complaint. During proceedings, the complainant moved an application under Sec. 143A NI Act seeking 20% interim compensation. Despite the petitioner's reply, the Ld. Trial Court, vide order dtd. 5/6/2025, directed payment of 20% of the cheque amount. The petitioner, therefore, seeks quashing of the impugned order dtd. 5/6/2025.

(3.) Learned counsel for the petitioner contends that Sec. 143A is discretionary, not mandatory, as the word "may" cannot be read as "shall." He further contends that the learned trial Court failed to appreciate the facts in the right perspective and imposed the condition to deposit 20% of the cheque amount and such a condition is illegal, arbitrary and in violation of the law as laid down by the Hon'ble Supreme Court in Criminal Appeal No.741 of 2024 titled as "Rakesh Ranjan Shrivastava vs. The State of Jharkhand and another", decided on 15/3/2024. Speaking through Justice Abhay S. Oka, it has been held as follows:-