In Bikash Bandhab Giri v. Sri Sukhdev Khatua @ Sukdeb & Anr. (CRR 2279 of 2024, 2026:CHC-AS:1476, decided on 10 September 2026), the Calcutta High Court dismissed a revision against a trial court order directing the accused in a cheque dishonour case to pay interim compensation of ₹10 lakhs — 20% of the ₹50 lakh cheque amount — within 60 days under Section 143A of the Negotiable Instruments Act, 1881. The decision restates when interim compensation can be ordered and how, exclusively, it can be recovered.
The Challenge
The petitioner — the accused drawer in a Section 138 NI Act prosecution over a ₹50 lakh cheque — challenged the trial court\'s direction to pay ₹10 lakhs as interim compensation within 60 days. The grounds were familiar: procedural deficiency in the order, and the contention that liability itself was seriously disputed, making a pre-conviction payment direction unjust.
What the High Court Held
Justice Shampa Dutt (Paul) dismissed the revision and affirmed the direction. The Court held that Section 143A empowers the trial court to order interim compensation where prima facie material supports the cheque dishonour charge, and the trial court had properly examined the cheque and the material before exercising the power. The order complied with the statute and caused no prejudice to the accused, whose defence remains fully open at trial.
On recovery, the Court was categorical: Section 143A\'s mechanism — recovery as a fine through the Section 421 CrPC procedure — is exclusively prescribed. Where a statute directs that a thing be done in a particular way, other ways are excluded by necessary implication.
How Section 143A Operates
Why the Provision Matters Commercially
Cheque prosecutions are, in substance, recovery proceedings travelling in criminal form, and their length has historically favoured drawers. Section 143A — inserted in 2018 — changes the economics of delay: a drawer who contests without substance faces a cash consequence within months of pleading not guilty, while a drawer with a genuine defence retains the protection of repayment with interest on acquittal. For complainants, an early, reasoned application under Section 143A, supported by the cheque, the return memo and the demand notice, can restore a fifth of the amount long before judgment.
Practice Points
- For complainants: move under Section 143A promptly after the not-guilty plea and place the prima facie material on record; the discretion is exercised on the case shown, not on the asking.
- For accused drawers: oppose on the specific material — the existence of a genuine triable defence and financial incapacity are the operative considerations; and remember the amount is repayable with interest if the defence succeeds.
- For both: recovery of unpaid interim compensation must travel the Section 421 route; execution shortcuts outside the statute are impermissible.
This article is for general information only and is not legal advice or a solicitation. The cited judgment should be read in full from the official record.
Frequently Asked Questions
What is interim compensation under Section 143A?
In a prosecution for cheque dishonour under Section 138 NI Act, the court may direct the drawer to pay the complainant interim compensation of up to 20% of the cheque amount — where the accused pleads not guilty in a summary/summons trial, or upon framing of charge in other cases. It is payable during the pendency of the case, before any finding of guilt.
Is the direction automatic?
No. The power is discretionary and must be exercised on a consideration of the case — in this matter the trial court had examined the cheque and found sufficient prima facie material supporting the complaint, which the High Court held was a proper foundation for the direction.
How is unpaid interim compensation recovered?
Through the mechanism the statute prescribes: Section 143A(5) makes the amount recoverable as if it were a fine under Section 421 CrPC. The High Court emphasised that where a statute prescribes a mode of recovery, that mode is exclusive — alternative methods are prohibited by necessary implication.
What happens to the money if the accused is acquitted?
Section 143A(4) requires the complainant to repay the interim compensation with interest at the bank rate notified by the Reserve Bank of India, within the time the court directs. The provision balances the drawer's interests against the payee's.