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Delay In Disposal Of Case Not Ground To Grant Interim Compensation U/S 143A of Negotiable Instruments Act: Karnataka High Court

The Karnataka High Court has said that the issuance of multiple notices by the investigating agency to a person while carrying out a preliminary enquiry into a case cannot be a ground for faltering the enquiry.

This was seen in the case of PADMANABHA T G v. M/S RADICAL WORKS PVT. LTD (CRIMINAL PETITION No.524/2022) and the judgment was presided over by the Coram of Justice M Nagaprasanna.

Facts of the case-

In the present case, the petitioner was before the Court calling in question the entire proceedings and also the order dated 09.11.2021, directing the petitioner to pay 10% of the Cheque amount involved in the transaction.

Judgement-               

The bench referring to the judgment of the High Court in Crl.P.No.632/2022 said, “This Court in the aforesaid order has held that the conduct of the accused would be the driving force for granting an interim compensation under Section 143A of the Amendment Act and such reasons should be recorded in the order, then such an order will become an order bearing application of mind.”

Against this backdrop, the High Court noted, “If the order passed by the learned Magistrate is considered in the light of the order passed by this Court, it would undoubtedly fall foul of Section 143A of the Amendment Act. The only reason rendered in the impugned order is that the disposal of the case would take considerable time. There is not even a mention of the conduct of the accused as a reason for granting of compensation.”

 Finally, the HC allowed the petition filed.

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Judgement reviewed by Alaina Fatima.

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