Section 143A of the Negotiable Instruments Act, talks about Power To Direct Interim Compensation
- Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the Court trying an offence under section 138 may order the drawer of the cheque to pay interim compensation1 to the complainant—
- in a summary trial or a summons case, where he pleads not guilty to the accusation made in the complaint; and
- in any other case, upon framing of charge.
- The interim compensation under sub-section (1) shall not exceed twenty percent of the amount of the cheque.
- 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
- If the drawer of the cheque is acquitted, the Court shall direct the complainant to repay to the drawer the amount of interim compensation, with interest at the bank rate as published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year, within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the complainant.
- The interim compensation payable under this section may be recovered as if it were a fine under section 421 of the Code of Criminal Procedure, 1973.
- The amount of fine imposed under section 138 or the amount of compensation awarded under section 357 of the Code of Criminal Procedure, 1973, shall be reduced by the amount paid or recovered as interim compensation under this section.
Yes it can be a basis for a trial.
Rajesh Soni Vs Mukesh Verma (Chhattisgarh High Court) is a well-known case related to this section.