Power to order Interim Compensation u/s 143A cannot be passed without complying Principles of Natural Justice: Karnataka HC [Read Order]

The single bench of Karnataka High Court presided by Mr. Justice M. Nagaprasanna has held that the power to order interim compensation u/s 143a cannot be passed without complying with principles of natural justice.

The petitioner, Sri. Himanshu Gupta and the respondent had certain transactions and certain cheques issued by the petitioner in favor of the respondent/complainant appear to have been dishonored which leads to the registration of the crime under section 200 of the Cr.P.C. for an offense punishable under Section 138 of the N.I. Act.

During the proceedings, the Court suo motu passes an order directing payment of 20% of the amount involved in the transaction without notifying the accused or allowing him to file his objections. The aggrieved petitioner approached the High Court to quash the impugned order.

The single bench observed that though no application is filed by the complainant, the Court may grant interim compensation, but it shall not be without hearing the accused. Passing an order without hearing the accused is trite law that any order both judicial and administrative if entails penal or civil consequences, it cannot be passed without at the outset complying with principles of natural justice.

The High Court quashed the order and held that “there was no application filed by the complainant and no hearing afforded to the accused, the order impugned is rendered unsustainable”.

To Read the full text of the Order CLICK HERE

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