NAZIR AHMAD CHOPAN Vs. ABDUL REHMAN CHOPAN

JUDGEMENT

(1.) The petitioner has challenged order dtd. 30/12/2019 passed by learned Judicial Magistrate, 1st Class (Munsiff), Bandipora, whereby in an application for grant of interim compensation under Sec. 143-A of the Negotiable Instruments Act (hereinafter referred to as the NI Act), the learned Magistrate has granted interim compensation @20% of the cheque amount i.e., an amount of Rs.13.60 lacs in favour of the respondent(hereinafter referred to as the complainant) against the petitioner (hereinafter referred to as accused).

(2.) A perusal of the record shows that the complainant has filed a complaint under Sec. 138 of the NI Act against the accused before the trial court. In the complaint it has been alleged that the accused has issued a cheque bearing No.787621 dtd. 2/8/2018 for an amount of Rs.68.00 lacs in favour of the complainant to discharge his liability which, according to the complainant, was to the tune of Rs.1,43,10,324.00. The cheque was drawn on Jammu and Kashmir Bank Limited Branch, Handwara. The complainant when presented the cheque for encashment, the same was returned by the bank of the accused unpaid on the ground of insufficiency of funds regarding which memo dtd. 30/10/2018 was issued by the bank. It is further averred in the complaint that a legal notice of demand was issued by the complainant through his counsel that was served upon the accused on 28/11/2018. When the accused failed to liquidate his liability within the statutory period after the service of demand notice, the complaint came to be filed by the complainant before the trial Magistrate.

(3.) It appears that during the pendency of the complaint, the complainant filed an application under Sec. 143-A of the NI Act before the trial Magistrate on 27/4/2019. Prior to that, on 25/3/2019, the plea of the accused was recorded by the trial Magistrate and in his statement, he has denied having issued the cheque in question in favour of the complainant. The learned trial Magistrate, after hearing the parties, passed the impugned order dtd. 30/12/2019, whereby the petitioner has been directed to pay an interim compensation @20% of the cheque amount i.e., Rs.13.60 lacs to the complainant. It is this order which is under challenge before this Court by way of instant petition. 3) Heard learned counsel for the parties and perused the record of the case.