{"id":271149,"date":"2022-08-04T12:00:49","date_gmt":"2022-08-04T06:30:49","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=271149"},"modified":"2022-08-12T11:07:24","modified_gmt":"2022-08-12T05:37:24","slug":"section143a-ni-act-section-138-interim-compenation-failure-to-deposit-punishment-denial-of-right-to-cross-examination-dishonour-cheque-supreme-court-legal-updates-research-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/08\/04\/section143a-ni-act-section-138-interim-compenation-failure-to-deposit-punishment-denial-of-right-to-cross-examination-dishonour-cheque-supreme-court-legal-updates-research-news\/","title":{"rendered":"Right to cross-examination cannot be denied as a punishment for failure to deposit interim compensation under Section 143A NI Act: Supreme Court\u00a0"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Supreme Court<\/strong>: In a case where an offender under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) was denied the right to cross-examine a witness upon failure to deposit the interim compensation under Section 143A of NI Act, the bench of <strong>UU Lalit<\/strong>*, S. Ravindra Bhat and Sudhanshu Dhulia, JJ has held that any such order foreclosing the right would not be within the powers conferred upon the court and would, as a matter of fact, go well beyond the permissible exercise of power.<\/p>\n<p style=\"text-align: justify;\">The Court, upon reading the provision in question, did the following pointwise break down of Section 143A of NI Act:<\/p>\n<ul style=\"text-align: justify;\">\n<li>The Court can pass an order directing the accused to pay interim compensation under Sub-Section 1.<\/li>\n<li>Sub-Section 2 then mandates that such interim compensation should not exceed 20 per cent of the amount of the cheque.<\/li>\n<li>The period within which the interim compensation must be paid is stipulated in Sub-Section 3.<\/li>\n<li>Sub-Section 4 deals with situations where the drawer of the cheque is acquitted. It contemplates repayment of interim compensation along with interest as stipulated.<\/li>\n<li>Sub-Section 5 states that the interim compensation payable under this Section can be recovered as if it were a fine. The expression interim compensation is one which is \u201cpayable under this Section\u201d and would thus take within its sweep the interim compensation directed to be paid under Sub-Section 1 of said Section 143A.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">It was, hence, observed that the remedy, the method, and modality of recovery of interim compensation is clearly delineated by the Legislature.<\/p>\n<blockquote><p>\u201cIt is well known principle that if a statute prescribes a method or modality for exercise of power, by necessary implication, the other methods of performance are not acceptable.\u201d<\/p><\/blockquote>\n<p style=\"text-align: justify;\">The Court was, hence, of the opinion that the concerned provision nowhere contemplates that an accused who had failed to deposit interim compensation could be fastened with any other disability including denial of right to cross-examine the witnesses examined on behalf of the complainant.<\/p>\n<p style=\"text-align: justify;\">[Noor Mohammad v. Khurram Pasha, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/MB0Y3Lc1\"><b>2022 SCC OnLine SC 956<\/b><\/a>, decided 02.08.2022]<\/p>\n<hr \/>\n<h4 style=\"text-align: justify;\">*Judgment by: Justice UU Lalit<\/h4>\n<hr \/>\n<p style=\"text-align: justify;\">For appellant: Advocate Shailesh Madiyal<\/p>\n<p style=\"text-align: justify;\">For Respondent: Advocate Anand Nuli<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court: In a case where an offender under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) was denied the <\/p>\n","protected":false},"author":121,"featured_media":271155,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[23564,30606,50706,50705,49885],"class_list":["post-271149","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-negotiable-instruments","tag-ni-act","tag-non-payment-of-interim-compensation","tag-right-to-cross-examination","tag-section-143-a-of-ni-act"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Right to cross-examination cannot be denied as a punishment for failure to deposit interim compensation under Section 143A NI Act: Supreme Court\u00a0 | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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Del HC decides whether S. 143-A is directory or mandatory?","author":"Bhumika Indulia","date":"December 23, 2021","format":false,"excerpt":"Delhi High Court: Anu Malhotra, J., held that the provision of Section 143A of the NI Act, 1881 is directory in nature and not mandatory. Petitioners were stated to be the directors as per the complaints i.e. CC NI Act 12-20 and CC NI Act 100-20 filed by the respondent\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":258949,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/12\/23\/magistrate-required-to-exercise-judicious-discretion-before-ordering-interim-compensation\/","url_meta":{"origin":271149,"position":1},"title":"Magistrate required to exercise judicious discretion before ordering interim compensation, S. 143-A NI Act not mandatory: Kar HC","author":"Bhumika Indulia","date":"December 23, 2021","format":false,"excerpt":"Karnataka High Court: Rajendra Badamikar, J.,\u00a0reversed an order of the Magistrate which had directed the petitioner accused to deposit 20% of the cheque amount before the court. The High Court said that Section 143-A of the Negotiable Instruments Act, 1881 is not a mandatory provision. Factual Matrix The respondent herein\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":266792,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/05\/12\/can-an-order-of-interim-compensation-under-s-143-a-ni-act-be-enforced-as-public-demand-under-bihar-orissa-public-demands-recovery-act-patna-high-court\/","url_meta":{"origin":271149,"position":2},"title":"Can an order of interim compensation under S. 143-A NI Act, be enforced as \u2018public demand\u2019 under Bihar &#038; Orissa Public Demands Recovery Act, 1914? Pat HC explains","author":"Bhumika Indulia","date":"May 12, 2022","format":false,"excerpt":"Patna High Court: The Division Bench of Sanjay Karol, CJ and S. Kumar J., held that an order of payment of interim compensation under the Negotiable Instruments Act, 1881 can be enforced under the Bihar & Orissa Public Demands Recovery Act, 1914 as \u2018public demand\u2019. Question for Consideration Whether an\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/05\/PatNI.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/05\/PatNI.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/05\/PatNI.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/05\/PatNI.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/05\/PatNI.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":294254,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/06\/09\/calcutta-high-court-upheld-trial-court-order-scc-blog-legal-research-news\/","url_meta":{"origin":271149,"position":3},"title":"Section 138 NI Act| No mandatory disposal of Section 143A application before examination of accused under Section 251 CrPC: Calcutta High Court","author":"Ritu","date":"June 9, 2023","format":false,"excerpt":"\u201cSection 143A empowers a Court to pass an order on interim compensation in favour of the complainant where the accused pleads not guilty to the accusations made in the complaint.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":264978,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/04\/04\/negotiable-instruments-act\/","url_meta":{"origin":271149,"position":4},"title":"[NI Act] Kar HC decides contours of law in a classic case where cash of Rs 2 crore was borrowed as hand loan and a cheque obtained for the repayment of the same got dishonoured","author":"Editor","date":"April 4, 2022","format":false,"excerpt":"Karnataka High Court: M. Nagaprasanna, J. allowed the petition and quashed the impugned order regarding attachment of property and auction notification. The facts of the case is such that the complainant claims to have lent to the accused a sum of rupees two crores by cash in two thousand rupees\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":363532,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/10\/13\/20-percent-compensation-deposit-u-s-148-ni-act-not-absolute-rule-guj-hc\/","url_meta":{"origin":271149,"position":5},"title":"20% compensation deposit under S. 148 of NI Act is not mandatory, Appellate Courts have discretion: Gujarat HC","author":"Editor","date":"October 13, 2025","format":false,"excerpt":"\u201cThe purpose behind directing to deposit as enumerated under Section 148 of the NI Act in appeal is at least to recover plausible compensation amount to provide some relief so as to save his business.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Compensation deposit S. 148 NI Act","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Compensation-deposit-S.-148-NI-Act.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Compensation-deposit-S.-148-NI-Act.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Compensation-deposit-S.-148-NI-Act.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Compensation-deposit-S.-148-NI-Act.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/271149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/121"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=271149"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/271149\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/271155"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=271149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=271149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=271149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}