9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 575 - HC - Indian LawsDishonor of Cheque - recovery of interim compensation as land revenue - public demand or not - Whether an order for payment of interim compensation under the Negotiable Instrument Act can be enforceable under the Bihar Orissa Public Demands Recovery Act, 1914 as a public demand? - HELD THAT - Section 143A of the NI Act under sub- section (5) specifically states that interim compensation payable under this Section is recoverable as a fine under Section 421 of the Code of Criminal Procedure. Section 421 (1) (b) provides for issuance of warrant to the Collector to realize amounts as arrears of land revenue from movable and immovable properties of said defaulter. Further, clause 3 of Schedule I of the Recovery Act states that any money realizable as arrear of land revenue by process authorized for said purpose shall be deemed a public demand under Section 3 of the Act. The interim compensation so ordered under Section 143A of the NI Act is recoverable as a fine under Section 421 of Cr.P.C. which then, as shown from the above discussion, clearly falls under the definition of public demand . The petitioner s contention of non-applicability of the Recovery Act, therefore, necessarily has to be negated. Once it is held that the interim compensation ordered under the NI Act falls within the ambit of Schedule I of the Recovery Act, realization thereunder cannot be stopped. The learned Court below was correct in issuing an order under Section 143A of the NI Act for recovery of interim compensation as land revenue - petition disposed off.
Issues Involved:
1. Whether an order for payment of interim compensation under the Negotiable Instrument Act can be enforceable under the Bihar & Orissa Public Demands Recovery Act, 1914 as a public demand? Issue-wise Detailed Analysis: 1. Enforceability of Interim Compensation under the Recovery Act: Facts: The private respondent, a trader, delivered goods worth Rs.1,26,75,600/- to the petitioner. The petitioner issued a cheque which was dishonoured. Consequently, a complaint was filed under Section 138 of the Negotiable Instrument Act, 1881 (NI Act). The Additional Chief Judicial Magistrate ordered interim compensation of Rs.25,00,000/- under Section 143A of the NI Act. When the petitioner failed to pay, a warrant under Section 421(1)(b) of the Code of Criminal Procedure (Cr.P.C.) was issued to the Collector for recovery. The Collector forwarded the order to the District Certificate Officer, who issued a notice for payment under the Bihar & Orissa Public Demands Recovery Act, 1914 (Recovery Act). Petitioner's Argument: The petitioner contended that the Recovery Act does not apply to the present case, asserting a jurisdictional vice. Court's Analysis: The court referred to the relevant provisions of the NI Act, Cr.P.C., and the Recovery Act: - Section 143A of the NI Act: Allows the court to order interim compensation up to 20% of the cheque amount, recoverable as a fine under Section 421 of Cr.P.C. - Section 421 of Cr.P.C.: Authorizes the issuance of a warrant to the Collector to realize the amount as arrears of land revenue. - Section 3 and Article 3 of Schedule I of the Recovery Act: Define "public demand" to include any money recoverable as arrears of land revenue. The court cited Surinder Singh Deswal v. Virender Gandhi (2019) and G.J. Raja v. Tejraj Surana (2019) to affirm the prospective application of Section 143A. It emphasized that the interim compensation under Section 143A, recoverable as a fine, falls within the definition of "public demand" under the Recovery Act. Conclusion: The court concluded that the interim compensation ordered under Section 143A of the NI Act is enforceable as a public demand under the Recovery Act. The petitioner's argument was negated, and the court upheld the lower court's order for recovery of interim compensation as land revenue. Disposition: The petition was disposed of with liberty to the petitioner to avail alternative remedies under the law. The court encouraged the parties to resolve the matter through mediation or conciliation. Interlocutory applications, if any, were also disposed of.
|
