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⚫Description
RAKESH RANJAN SHRIVASTAVA vs THE STATE OF JHARKHAND & ANR.
CRIMINAL APPEAL NO. 741 OF 2024- https://main.sci.gov.in/supremecourt/2023/7859/7859_2023_8_1502_51462_Judgement_15-Mar-2024.pdf
The Supreme Court held that the exercise of power to grant interim compensation in cheque bounce cases under sub-section (1) of Section 143A of the Negotiable Instruments Act, 1881 (N.I. Act) is discretionary and not mandatory. The complainant filed a complaint under Section 138 of the N.I. Act against the appellant, alleging dishonour of a cheque made towards payment of agreed amounts in various business ventures. Subsequently, the complainant sought interim compensation under Section 143A of the NI Act, which was granted by the trial court and upheld by the Jharkhand High Court.
The Supreme Court ruled that granting interim compensation in cheque bounce cases under Section 143A of the Negotiable Instruments Act is discretionary. Factors considered include evaluating the merits of the case and the financial situation of the accused. If a prima facie case is established and the accused's defence is not plausible, the Court may grant interim compensation after considering various factors such as the nature of the transaction and the relationship between the parties.
00:00- Introduction
01:12- New provision in NI Act
02:05- Facts of the case
04:35- Arguments in Supreme Court
06:03- Section 143-A explained in Hindi
08:46- Guidelines by Supreme Court
10:53- Practical Tips for Subscribers
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