Applicability of Sec 143A of negotiable instruments act

The Act has been amended thereby incorporating section 143A which has been notify on 01.09.2018 and applicable in this case. Section 143A of Act is being reproduce herein below:

143A. Power to direct interim compensation:

(1) Notwithstanding anything contained in the code of Criminal Procedure, 1973 (2 of 1974), the court trying an offence under section 138 may order the drawer of the cheque to pay interim compensation to the complainant-

(a) in a summary trail or a summon case, where he pleads not guilty to the accusation made in the complaint; and
(b) in any other case , upon framing of charge.

(2) The interim compensation under sub-section (1) shall not exceed twenty per cent of the amount of the cheque.

(3) The interim compensation shall be paid within sixty days from the date of the order under sub-section (1) , or within such further period not exceeding thirty days as may be directed by the court on sufficient cause being shown by the drawer of the cheque.

The said provision was challenged in Hon'ble Supreme court titled as G.J. Raja versus Tejraj Surana bearing SLP ( Criminal) No. 3342 of 2019 whether the provisions are applicable prospective or retrospective in which Supreme court held as under;

"That the provisions of said section 143A can be applied or invoked only in cases where the offence under section 138 of NI Act was committed after the introduction of said section 143A.'

In view of the said judgment , the provisions is not applicable where the court has taken cognizance before the commencement of amendment . Section 143A is applicable where the court has taken cognizance after amendment.

 

Prithvi Raj Sikka 
on 05 September 2019
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