2020 (12) TMI 507 - HC - Indian Laws

Direction to petitioner to deposit 20% of the cheque amount in terms of Sec. 143-A of the Negotiable Instruments Act - non-application of mind - HELD THAT - It is now well settled that this Court is entitled to exercise its jurisdiction/ inherent powers under Section 482 Cr.P.C., especially when it relates to interfering with interlocutory orders/ proceedings only if such exercise of power is required to prevent abuse of the process of the court arising out of such impugned order/proceedings or to secure the ends of justice Thus, in the facts of the instant case, the impugned order passed by the trial court invoking Section 143-A of the N.I Act and thereby directing the accused to deposit 20% of the cheque amount does not warrant interference by this Court in the exercise of its powers under Section 482 Cr.P.C - petition dismissed.

Summary

Issues:
Quashing of order directing deposit under Sec. 143-A of N.I. Act.

Analysis:
1. The respondent filed a complaint under N.I. Act against the accused for dishonored cheque. Accused failed to comply with demand in statutory notice.
2. Trial Court took cognizance of the offense, examined complainant, and issued summons to accused.
3. Accused appeared, sought bail, and later denied plea, leading to the trial Court invoking Sec. 143-A and directing deposit of 20% of cheque amount.
4. Petitioner challenges the order, claiming trial Court erred in passing order without reasons and without an application under Sec. 143-A.
5. Petitioner argues Madras HC decision supports his contention that Sec. 143-A is directory, not mandatory.
6. Respondent argues trial Court's discretionary order under Sec. 143-A does not warrant interference, seeking dismissal of petition.
7. The Court notes its power under Section 482 Cr.P.C. to prevent abuse of process or secure justice.
8. Court finds the impugned order justified due to lack of defense from accused, presumption under Section 139 N.I. Act, and legality of trial Court's actions.
9. The Court rejects petitioner's arguments on non-speaking order, lack of application under Sec. 143-A, and potential failure of justice.
10. Court addresses concerns of accused regarding refund if acquitted, ensuring safeguards and directions for fair proceedings.
11. The Court dismisses the petition, confirming trial Court's order, granting time for deposit, and issuing directions for case disposal and fund disbursement under Sec. 143-A.