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Madhu Mittal (Director)     15 February 2023

Challenging compensation order given inbetween trial

A loan of Rs. Two lakhs was given to a borrower on 25.03.2016, interest to be charged @ 15 % p.a.  through banking channel on the basis of his post dated cheque of Rs. Two lakhs dated 25.03.2018 , when post dated cheque was deposited on 25.03.2018, it was dishonored, so a complainant u/s 138 N I Act was lodged against borrower, borrower alongwith his family left his residence as well as business place. On 06.09.2022 borrower/accused got his bail. On third hearing date of his appearance, i.e. 01.10.2022 he deposited a demand draft of Rs. Two lakhs in court alongwith an application to discharge him as per decision of SC decision M/S Meters And Instruments ... vs Kanchan Mehta on 5 October, 2017. The said Draft was got given to complainant on 01.10.2022 itself, next hearing is 12.10.2022.

      On next hearing 12.10.2022, a detailed written reply was filed by complainant stating that 1.the said decision of SC was overruled by Five Judges bench  judgment decided on  April 16, 2021, so not to discharge the accused 2.Statutory interest @ 18% p.a. u/s 80 N I Act from 25.03.2018 to 01.10.22 i.e. for about four and half years should be got given to complainant in addition to face value of cheque 3. Cost @ 500/- per hearing for 26 hearing should be got given.

      On 19.1.2023, by disposing of application of accused dated 01.10.2022, Trial court ordered that in addition to Rs. Two lacs, Rs. 20000/- (twenty thousand) as cost/compensation to be deposited in cash/Draft by accused and next hearing is 03.02.2003.

      On 03.02.2003, accused deposited the draft of twenty thousand, but complainant refused to take this draft of additional amount. So next hearing was fixed 01.03.2023 for charge.

      As complainant is not satisfied with this compensation/cost of Rs. twenty thousand, what is the remedy for complainant to challenge this order of compensation dated 19.01.2023? 1.To Session Court appeal u/s 372  2. To Session Court revision u/s 397 3. anywhere else under which section  or 4. Not to challenge at all as accused was not discharged, but if not challenged now, later on it is said as far as compensation/cost is concerned, decision dated 19.01.2023 got  finalty as it was not challenged.

            I have posted above at https://www.lawyersclubindia.com/experts/how-to-challenge-compensation-order-given-inbetween-trial-747251.asp , still I posted here as some learned members still has to be rolled as expert and here availability of attachment also

A loan of Rs. Two lakhs was given to a borrower on 25.03.2016, interest to be charged @ 15 % p.a.  through banking channel on the basis of his post dated cheque of Rs. Two lakhs dated 25.03.2018 , when post dated cheque was deposited on 25.03.2018, it was dishonored, so a complainant u/s 138 N I Act was lodged against borrower, borrower alongwith his family left his residence as well as business place. On 06.09.2022 borrower/accused got his bail. On third hearing date of his appearance, i.e. 01.10.2022 he deposited a demand draft of Rs. Two lakhs in court alongwith an application to discharge him as per decision of SC decision M/S Meters And Instruments ... vs Kanchan Mehta on 5 October, 2017. The said Draft was got given to complainant on 01.10.2022 itself, next hearing is 12.10.2022.

      On next hearing 12.10.2022, a detailed written reply was filed by complainant stating that 1.the said decision of SC was overruled by Five Judges bench  judgment decided on  April 16, 2021, so not to discharge the accused 2.Statutory interest @ 18% p.a. u/s 80 N I Act from 25.03.2018 to 01.10.22 i.e. for about four and half years should be got given to complainant in addition to face value of cheque 3. Cost @ 500/- per hearing for 26 hearing should be got given.

      On 19.1.2023, by disposing of application of accused dated 01.10.2022, Trial court ordered that in addition to Rs. Two lacs, Rs. 20000/- (twenty thousand) as cost/compensation to be deposited in cash/Draft by accused and next hearing is 03.02.2003.

      On 03.02.2003, accused deposited the draft of twenty thousand, but complainant refused to take this draft of additional amount. So next hearing was fixed 01.03.2023 for charge.

      As complainant is not satisfied with this compensation/cost of Rs. twenty thousand, what is the remedy for complainant to challenge this order of compensation dated 19.01.2023? 1.To Session Court appeal u/s 372  2. To Session Court revision u/s 397 3. anywhere else under which section  or 4. Not to challenge at all as accused was not discharged, but if not challenged now, later on it is said as far as compensation/cost is concerned, decision dated 19.01.2023 got  finalty as it was not challenged.

            I have posted above at https://www.lawyersclubindia.com/experts/how-to-challenge-compensation-order-given-inbetween-trial-747251.asp , still I posted here as some learned members still has to be rolled as expert and here availability of attachment also



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 2 Replies

Advocate Bhartesh goyal (advocate)     15 February 2023

Complainant can file revision petition u/sec 397 of Cr.P.C for enhancement of compensation.

Mohammed Kutbuddin Vohra   15 February 2023

The court has not disposed your Complaint under 138 of NI act and has merely disposed the application of accused dated 01.10.2022 and imposed a cost thereby. If you are dissatisfied you may file a revision application under 397 read with 399, 400, 401 before the Hon'ble High Court or Session court as you deem fit.
However, in my personal opinion that will delay the 138 proceedings and affect you in the long run therefore it is better to take the interim compensation and go for a final order arguing for compensation double the amount of cheque as per NI Act as the cost of 20,000/- is not final cost imposed and is merely awarded for the 26 hearings at the rate of 500/- each.
Regards,
M. K. Vohra & Associates,
Ahmedabad, Gujarat.

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