CAUSE TITLE:
Indranil Mukherjee vs The State of West Bengal and Others
DATE OF ORDER:
21 April 2022
JUDGE(S):
The Hon’ble Justice Kausik Chanda
PARTIES:
Petitioner: Indranil Mukherjee
Respondents: The State of West Bengal and Others
SUBJECT
The Revisional Application was filed against an order dismissed by the learned Metropolitan Magistrate, to seek recovery of the interim compensation awarded to the petitioner.
LEGAL PROVISION
NEGOTIABLE INSTRUMENTS ACT (HEREINAFTER AS NI ACT)
SECTION 138
Dishonour of cheque for insufficiency, etc., of funds in the account.
SECTION 143
It grants power upon the trial Court to direct payment for interim compensation.
THE INDIAN PENAL CODE, 1860 (HEREINAFTER AS IPC)
SECTION 70
Death will not discharge property from liability if fine is leviable within six years, or during imprisonment.
THE CODE OF CRIMINAL PROCEDURE, 1973 (HEREINAFTER AS CPC)
SECTION 421: WARRANT FOR LEVY OF FINE
When an offender has been sentenced to pay a fine, the Court passing the sentence may take action for the recovery of the fine.
THE GENERAL CLAUSES ACT, 1897
SECTION 25: RECOVERY OF FINES
Section 63 to 70 of the IPC and the provisions of CPCwill apply to the execution of warrants for the levy of fines.
OVERVIEW
- The petitioner had filed a complaint against the accused for the dishonour of a cheque amounting to Rs. fifty lakhs. The case was transferred to the Court of learned Metropolitan Magistrate, where the petitioner filed an application u/s 143A of the NI Act for interim compensation.
- The application was allowed andordered the accused to pay interim compensation to the tune of 20% of the total cheque amount to the petitioner.
- The order was challenged by filing a revisional application. During the pendency of the application, the accused died.
ISSUE
- Whether an interim compensation awarded u/s 143A of the NI Act, be recovered from the estate of a deceased accused, who died before the conclusion of the trial?
ARGUMENTS BY THE PETITIONER
- It was submitted that Section 70 of IPC wasapplicable to the execution of warrants for levy of fines under NI Act. An interim compensation was also liable to be recovered from the estate of the deceased accused since the liability remained accrued on account of the non-payment. The Counsel for the petitioner relied upon the decisions rendered in Ramesan v. State of Kerala [(2020) 3 SCC 45].
- It was also argued that repayment, as contemplated u/s143(4) would be relevant only when the accused is acquitted from the charge, but in the case of death of the accused, the question of acquittal does not arise. Therefore, on the death of the accused, the liability to pay interim compensation from the estate of the accused is not absolved u/s 143(4). The same was backed by the Hon’ble Supreme Court cases, Sri Jeyaram Educational Trust v. A.G. Syed Mohideen [(2010) 2 SCC 513] and NEPC Micon Ltd. v. Magma Leasing Ltd. [(1999) 4 SCC 253].
- ARGUMENTS BY THE RESPONDENTS
- It was argued that Section 143A starts with a non-obstante clause. Therefore, the said provision cannot be extended to the provisions of IPC, which is a substantial law. Interim compensation u/s143A passes at a pre-trial stage while Section 70 of IPC becomes operative only after guilt is found. Therefore, the provisions of the IPC cannot be made applicable to the provisions of theNI Act.
- It was submittedthat the application filed u/s 421 of CPC for recovery of the interim compensation was not maintainable since it was filed against a dead person. It was also argued that the compensation passed u/s 143A is interim in nature and refundable in case it is established that the accused is innocent. In the case of the death of an accused during the trial, the innocence of the accused cannot be, in any event, proved and therefore, the amount of compensation directed to be paid in terms of Section 143A becomes irrecoverable. The judgement in M. Abbas Haji v. T.N. Channakeshava [(2019) 9 SCC 606] was relied upon.
JUDGMENT ANALYSIS
- In Bondada Gajapathi Rao v. State of A.P. [AIR (1964) SC 1645], the Supreme Court laid down that the hearing of a proceeding may be continued after the death of an accused. Further Section 25 of the General Clauses Act, cleared that Sections 63 to 70 of IPC shall apply to fines imposed under the NI Act. Therefore, the provisions of Section 70 of IPC, can be extended to Section143A of theNI Act.
- It was clear that where the compensation had been directed to be paid upon conclusion of a proceeding u/s138 of the NI Act, the legal heirs who inherited the estate of the deceased were liable to repay the fine or compensation amount when an application u/s 421 of CPC has been filed. The same was upheld in Shamim Saifuddin Sarkhot v. Jugraj Miyachand Jain[(2016) 2 ABR (Cri) 191]. Section 143A(1) is not independent of Section 143A (4). A bare perusal of Section 143A(4) made it clear that in the event the drawer of the cheque is acquitted, the interim compensation paid in terms of Section 143A(1) had to be repaid together with the prevalent bank interest.
CONCLUSION
- The Court was of the view that if in case of death of an accused the compensation awarded u/s 138 of the NI Act, can be recovered from the estate of a deceased accused, but an interim compensation awarded u/s 143A cannot be recovered from the estate of a deceased accused, who died before the conclusion of the trial.
- Therefore, the revisional application was dismissed without interfering with the order of the learned Magistrate.
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