The High Court addressed the issue of interim compensation u/s ...

Court rules in favor of accused in dishonored cheque case. No interim compensation granted due to plausible defense. Dilatory tactics considered. Judgment quashed.

Case Laws     Indian Laws

June 12, 2024

The High Court addressed the issue of interim compensation u/s 143A of the NI Act, 1881 for dishonored cheques. It emphasized the need for a prima facie evaluation of the complainant's claim and accused's defense to determine if interim compensation is warranted. The Court may refuse compensation if the defense seems plausible. The Court must also consider the appropriate quantum of compensation, not automatically awarding the upper threshold of 20% of the cheque amount. In this case, the accused claimed payment through cash and bank channels, supported by evidence. The Court noted the accused's dilatory tactics but emphasized that compensation aims to counter such delays. The Court found fault with the lower court's failure to consider the quantum of compensation, leading to the quashing of its order. The petition was allowed.

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