Interim Compensation Awarded U/S 143A Of NI Act Cannot Be Recovered From Estate Of Deceased Accused: Calcutta HC

The Calcutta High Court has recently held that an order of interim compensation awarded under Section 143A of the Negotiable Instruments Act, 1881 (Act) cannot be recovered from the estate of a deceased accused, who died before the conclusion of the trial.

Justice Kausik Chanda observed that the order of interim compensation is dependent on the outcome of the trial and accordingly underscored, 

"There is no finality attached to such interim order of compensation and no right is crystallised in favour of the complainant by dint of such interim order of compensation. The order of interim compensation, which is passed in the aid of final compensation, will cease to exist when the trial comes to an end due to the death of the accused since in such eventuality there cannot be any scope to adjudicate the innocence or the guilt of the accused in the trial."

The Court further opined that in the event of the death of an accused, compensation awarded under Section 138 of the Act can be recovered from the estate of a deceased accused however an interim compensation awarded under Section 143A of the Act cannot be recovered from the estate of a deceased accused. 

"Therefore, I am of the view that if in case of death of an accused the compensation awarded under Section 138 of the Negotiable Instruments Act, 1881 can be recovered from the estate of a deceased accused, but an interim compensation awarded under Section 143A of the said Act cannot be recovered from the estate of a deceased accused, who died before the conclusion of the trial," the Court held further. 

Background 

The instant appeal had been preferred against an order dated April 3, 2021, passed by the concerned Metropolitan Magistrate by which an application filed under Section 421 of the CrPC seeking recovery of the interim compensation awarded to the petitioner had been dismissed vide order dated March 4, 2020.

The petitioner had filed a complaint under Sections 138 and 141 of the Act against the accused persons for the dishonour of a cheque amounting to Rs.50 lakh. Thereafter, the petitioner had filed an application under Section 143A of the Act for interim compensation. Subsequently, the concerned Magistrate vide order dated March 4, 2020 had allowed the application directing the accused to pay interim compensation to the tune of twenty percent of the total cheque amount to the petitioner in terms of Section 143A of the Act within sixty days from the date of order.

The order of March 4, 2020 passed by the concerned Magistrate was however challenged before the concerned Sessions Court by filing a revisional application. However, during the pendency of the application, the accused died on October 19, 2020, leaving behind his widow and children as his legal heirs.

The order dated March 4, 2020, was affirmed by the concerned Sessions Court on December 2, 2020, and thereafter the petitioner filed an application under Section 421 of the CrPC before the concerned Magistrate for recovery of the interim compensation awarded by the order dated March 4, 2020.

However, the Magistrate by the impugned order impugned dated April 3, 2021 dismissed the petition holding, inter alia, that interim compensation awarded to the petitioner could not be executed inasmuch as criminal liability including the pecuniary penalties stood extinguished upon the death of the accused person.

Advocates Ayan Bhattacharjee, Indrajit Adhikari, Sharequl Haque, Subhajit Manna, Somdev Ash and Suman Majumder appeared for the petitioner. Advocate Sonal Anand represented respondent no. 2. 

Case Title: Indranil Mukherjee v. State of West Bengal and Ors 

Case Citation: 2022 LiveLaw (Cal) 145

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