Supreme court: Interim Compensation u/s 143 Negotiable Instruments Act in Cheque Dishonour Cases is discretionary not Mandatory Negotiable Instruments Act, 1881 – s.143A(1) – Grant of interim compensation – Directory or mandatory: HELD : The power under sub-section (1) of Section 143A is discretionary, not mandatory. This sub-section allows for the issuance of an order for interim compensation against the accused in a complaint under Section 138, even before any determination of guilt. This power can be exercised at the initial stage, even before evidence is recorded. Interpreting the word ‘may’ as ‘shall’ would have severe consequences, requiring the accused in every Section 138 complaint to pay up to 20% of the cheque amount as interim compensation. Such an interpretation would be unjust and contrary to established principles of fairness and justice. It could also render the provision arbitrary and violative of Article 14 of the Constitution. Given the significant implications of exe...
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