Allowed

Sanjaya T N v. M/S Future World

Karnataka HC18 Apr 2022CRL.P/3170/2022

Case brief

AI extract

What is this about?

The High Court, under Section 482 Cr.P.C., allowed the criminal petition and quashed the order of the XXXVI Additional Chief Metropolitan Magistrate that dismissed an application for interim compensation under Section 143(A) of the Negotiable Instruments Act, remitting the matter for reconsideration.

What did the court decide?

The order dated 30.10.2021 dismissing the application for interim compensation under Section 143(A) of the N.I. Act is quashed and the matter is remitted to the Magistrate.

Sanjaya T N Vs M/S Future World — Money Laundering | Karnataka HC (2022)

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 18^TH DAY OF APRIL, 2022

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BEFORE

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THE HON'BLE MR. JUSTICE M. NAGAPRASANNA

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CRIMINAL PETITION No.3170 OF 2022

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BETWEEN

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SANJAYA T. N S/O LATE NAGARAJA RAO T. N AGED 39 YEARS RESIDING AT NO.302 3^RD FLOOR, AADHYA APARTMENT 4^TH CROSS, 7^TH MAIN ROAD AKSHAYANAGAR EAST BENGALURU - 560068

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... PETITIONER

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[BY SRI. RAGHU PRASAD B.S., ADV.]

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AND

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M/S FUTURE WORLD PROPRIETORSHIP FIRM NO.1348, 7^TH AVENUE 4^TH FLOOR, 9^TH BLOCK JAYANAGAR SOUTH EAST END MAIN ROAD BANGALORE -11 BY ITS PROPRIETOR PYARI MOHAN DAS [email protected] [email protected]

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PYARI MOHAN DAS S/O BHARATH CHANDRA DAS SS-2075, 7^TH FLOOR SOBHA HILL VIEW APARTMENT VISL LAYOUT, THALLAGHATTAPURA OPPOSITE TO HOME SCHOOL BANGALORE – 560 062 [email protected]

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ALSO AT: No.158, SRI CHANDANPUR VILLAGE BANGURIGAN POST, PS -KAKATAPUR PURI DISTRICT – 752 118 ODISHA ... RESPONDENTS

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THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO SET ASIDE ORDER DATED 30.10.2021 PASSED ON IA FILED UNDER 143(A) IN C.C.NO.11781/2020 BY THE XXXVI ADDITIONAL CHIEF METROPOLITAN MAGISTRATE AT BENGALURU AND ALLOW IA FILED U/S 143(A) OF N.I. ACT.

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THIS CRIMINAL PETITION COMING ON FOR ADMISSION THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The petitioner is before this Court calling in question the proceedings in C.C.No.11781/2020, particularly order dated 30.10.2021, passed on I.A. filed under Section 143(A) of Negotiable Instruments Act, 1881 (for short ‘the N.I. Act’) by the XXXVI Additional Chief Metropolitan Magistrate at Bengaluru.

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Heard Sri. Raghu Prasad B.S., learned

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counsel appearing for the petitioner.

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Sans details, the brief facts leading to the filing of the present petition are:

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The petitioner and the respondents were into transactions, in furtherance of which the respondents appear to have issued some cheques, which have been dishonored on account of want of sufficient funds. The complainant – petitioner initiates proceedings under Section 138 of the Negotiable Instruments Act, 1881 in C.C.No.11781/2020.

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In the said case, the petitioner files an application under Section 143(A) of the N.I. Act seeking interim compensation. The Court dismissed the said application on the following grounds:

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“ REASONS

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7. Point No.1 : The instant case is filed by the complainant through private complaint for

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the offence punishable under Sec.138 of Negotiable Instruments Act, 1881.

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8. After issuance of summons to the accused, he has appeared before the Court and got enlarged on bail on 09/03/2021. The plea is recorded 20/09/2021. The complainant has filed this application on 09/03/2021 before the substance of the accusation is read over and explained to the accused.

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9. According to Sec.143A of N.I.Act., the Court trying an offence under Sec.138 may order the drawer of the cheque to pay interim compensation to the complainant in a summary or summons case, where he pleads not guilts to the accusation made in the complaint and in any other case, upon framing of charge and the interim compensation shall not exceed twenty percent of the amount of the cheque.

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10. The intent behind this provision is to provide aid to the complainant during the pendency of the proceedings under Sec.138 of N.I.Act. Thus, the said provision has been

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incorporated by the legislature with the aim of reducing the undue delay in disposal of cheque dishonor cases and also providing interim compensation to the complainant.

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11. As per Sec.143A of NI Act, for grant of interim compensation, the first requirement is that it should be a summary/summoned trial case and further, the second requirement is that charge should have been framed and the accused should not have pleaded guilty in the matter. It is further clear from the perusal of the provision of 143A of NI Act that only aforesaid two requirements are to be fulfilled. In the case on hand, before the plea is recorded the complainant has filed this application. Hence, this application is not maintainable. Accordingly, I answer this point in negative. ”

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The Court misconstrues that only on two circumstances the interim compensation can be considered. Apart from that, the order does not contain any reasons to dismiss the application qua the contents

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of the application. Therefore, the matter requires reconsideration at the hands of the learned Magistrate.

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For the aforesaid reasons, the following:

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ORDER

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i. Criminal Petition is allowed.

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ii. The order dated 30.10.2021 passed on I.A. filed under Section 143(A) of the N.I. Act in C.C.No.11781/2020 by the XXXVI Additional Chief Metropolitan Magistrate, Bengaluru, stands quashed.

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iii. The matter is remitted back to the hands of the learned Magistrate to pass an appropriate orders after noticing the purport of Section 143(A) of the Negotiable Instruments Act, 1881, in accordance with law.

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Sd/JUDGE

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Sanjaya T N v. M/S Future World

Case brief

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Sanjaya T N v. M/S Future World

Case brief

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