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2021 (8) TMI 823 - HC - Indian LawsDishonor of Cheque - application under Section 143(A) of N.I. Act seeking permission to deposit interim compensation amount - HELD THAT - Initially an order has been passed by the trial Court on 11.12.2019 by allowing the application filed by the petitioner/complainant directing the respondent/accused to pay 10% of the Cheque amount as interim compensation as per Section 143(A) of N.I. Act. Thereafter on 29.01.2020 the respondent/accused filed an application under Section 143(A) of N.I. Act seeking permission to deposit interim compensation amount in the Court and to keep the said amount in the Court account till disposal of the case. But the trial Court committed an error without passing any order directing the respondent/accused to deposit the amount in the Court or rejecting the application. It may be by oversight or an error, but once the order was passed by allowing or rejecting the application, the same Magistrate has no power to recall any order passed on the same application as per the provisions of Section 362 of Cr.P.C. - though the learned counsel for the respondent/accused had already filed an application for depositing the interim compensation in the Court till disposal of the case, the trial Court has not passed any order on that application. Even if it is considered, the trial Court cannot change the order as there is a bar under Section 362 of Cr.P.C. Therefore with the consent of learned counsel for both the parties, the said application is to be considered before this Court. The order passed by the trial Court on 01.03.2021 dismissing the application under Section 143(A) of N.I. Act is hereby set aside. The earlier order dated 11.12.2019 allowing the application filed under Section 143(A) of N.I. Act is restored - Petition allowed.
Issues involved:
Petition challenging order under Section 143(A) of Negotiable Instruments Act (N.I. Act) passed by trial court. Analysis: The petitioner filed a private complaint under Section 200 of Cr.P.C. against the respondent/accused for dishonor of a cheque under Section 139 of N.I. Act. The trial court initially allowed the petitioner's application under Section 143(A) of N.I. Act, directing the respondent/accused to pay 10% of the cheque amount as interim compensation. Subsequently, the respondent/accused sought permission to deposit 20% of the cheque amount in court, but the trial court did not pass any order on this application. Instead, it issued a second order on 01.03.2021 rejecting the petitioner's application under Section 143(A) of N.I. Act. The High Court noted that once an order is passed on an application, the same magistrate cannot recall it as per Section 362 of Cr.P.C. Therefore, the second order passed by the trial court was quashed. The respondent/accused had filed an application to deposit the interim compensation in court, which the trial court did not address. The High Court, with the consent of both parties, decided to consider this application. The respondent/accused argued that the petitioner, a foreign citizen, might flee India if the amount is released, and the transaction being 10 years old, success in the final judgment was possible. Considering these arguments, the High Court found merit in the respondent's submissions. The High Court, exercising power under Articles 226 and 227 of the Constitution of India and Section 482 of Cr.P.C., allowed the petition. It set aside the trial court's order dismissing the application under Section 143(A) of N.I. Act and restored the earlier order from 11.12.2019. However, the order was modified to direct the respondent/accused to deposit 10% of the cheque amount in court within six weeks, to be kept in a Nationalized Bank as Fixed Deposit until the case's disposal by the trial court.
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