Right to Cross-Examination Cannot be Denied on the Ground of Non-Payment of Interim Compensation - SC

Case: Noor Mohammed v. Khurram Pasha

Bench: Justices UU Lalit, S Ravindra Bhat, and Sudhanshu Dhulia 

In a recent decision by the Top Cour, an accused who fails to deposit interim compensation cannot be denied the right to cross-examine the witnesses examined on behalf of the complainant under Section 143A of the Negotiable Instruments Act (NI Act). 

The bench was hearing an appeal against the decision of the Karnataka High Court, wherein the HC upheld the conviction order passed by the lower court against the appellant under Section 138 of the NI Act.

BACKGROUND

The trial court hearing a complaint by the respondent against the appellant with regard to the dishonour of the cheque. During the hearing, the trial court had directed the appellant to deposit 20 per cent of the cheque amount as interim compensation within 60 days. However, the appellant failed to deposit the interim compensation. When the matter was taken up for examination of witnesses, the appellant moved an application seeking permission to cross-examine the respondent. However, in view of his failure to deposit the interim compensation, the application was denied and the appellant was later convicted.

The HC upheld the order of the trial court and hence, the present appeal before the SC.

ARGUMENT

The appellant argued before the SC that even though the interim compensation order in terms of Section 143A of the NI Act was not complied with, the amount could be recovered under sub-section (5) of Section 143A, but it would not be within the court's jurisdiction to deny an accused of his rights.

HELD

The Court agreed with the submissions of the appellant and said that it is nowhere written that an accused who fails to deposit interim compensation could be denied the right of cross-examination.

The bench, while allowing the appeal, said that the decisions given by the courts suffer from an inherent infirmity and illegality.