In Brief
A bank cheque holder filed a criminal complaint alleging dishonor of a cheque for Rs. 2.2 crore issued as settlement of business disputes. The trial court ordered the accused to pay 10 lakh rupees (less than 5% of cheque amount) as interim compensation under Section 143A of the Negotiable Instruments Act before the trial concluded. The Supreme Court held that the power to award interim compensation is discretionary, not mandatory. The word "may" cannot mean "shall," as mandatory interpretation before guilt is established would violate fairness and Article 14. Courts must prima facie evaluate the case, consider the accused's defence, and record reasons. Factors like financial distress, transaction nature, and relationship between parties are relevant. The appeal was partly allowed and the case remitted to the trial court for reconsideration."
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