# In the matter of Bajaj Constructions vs. State of Maharashtra & Ors.

> HC judgment dated 2024-06-10. Citation: TCN-2024-HC-00073. The case involves a writ petition filed by M/s. Bajaj Constructions against the State of…

- **Court:** HC
- **Order date:** 10 Jun 2024
- **Citation:** TCN-2024-HC-00073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/bajaj-constructions-vs-state-of-maharashtra-ors-17753496

## Summary

### Background

The case involves a writ petition filed by M/s. Bajaj Constructions against the State of Maharashtra and M/s. Paint Art, challenging an order passed by the Additional Sessions Judge, Greater Bombay, which overturned an order by the Metropolitan Magistrate. The Magistrate had rejected an application for interim compensation under Section 143A of the Negotiable Instruments Act, 1881 (NI Act). The Additional Sessions Judge allowed the revision and directed the petitioner to deposit 20% of the cheque amount as interim compensation. The petitioner, accused in a cheque dishonor case, argues that the Additional Sessions Judge erred in mandating interim compensation, while the respondents contend that the Magistrate's initial decision was flawed.

## Facts

M/s. Paint Art, a company engaged in internal and external painting, plumbing, and reconstruction work, is the complainant. M/s. Bajaj Constructions, owned by Manish Bajaj, is the accused and deals in building construction and real estate. Bajaj Constructions contracted Paint Art to carry out balance civil work on a building called Vandana Building. The agreed consideration was Rs. 1,70,00,000/-. Despite the work being completed in May 2019, Bajaj Constructions defaulted on payment. On September 7, 2021, Bajaj Constructions affirmed an affidavit acknowledging the liability and issued four cheques for Rs. 42,50,000/- each, totaling Rs. 1,70,00,000/-, payable on October 20, 2021. These cheques were dishonored on October 27, 2021, and again on December 23, 2021. A demand

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## Issues and analysis

### Issue 1: Whether the Additional Sessions Judge was justified in overturning the order of the Metropolitan …

**Ratio:** The power to award interim compensation under Section 143A of the NI Act, 1881 is

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**Reasoning:** The High Court reasoned that the Metropolitan Magistrate's order did not suffer from

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**Interpretation:** The interpretation of Section 143A of the NI Act, 1881, is that it grants

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**Application:** In this case, the High Court applied the ratio by finding that the Metropolitan

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## Parties

- **Judges:** N. J. JA…
- **Appellants:** M/s. Bajaj…
- **Respondents:** The State of…

## Timeline

- **2019-05-01 — Completion of C…**: M/s. Paint Art completes the balance civil work on Vandana Building for M/s. Bajaj…
- **2021-09-07 — Affidavit of L…**: M/s. Bajaj Constructions affirms an affidavit acknowledging the liability of Rs.…

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