JUDGMENT:

1. This is a batch of matters before me wherein the same common question of law arises for decision. Accordingly, I propose (also as has been agreed to by all the learned counsel appearing for the parties) to decide only the principle question of law posed for decision and leave the individual cases to be decided accordingly. Hence, I am relieved of the need of noticing facts of individual cases.

(i) Whether the signatory of the cheque, authorized by the "Company", is the “drawer" and whether such signatory could be directed to pay interim compensation in terms of section 143A of the Negotiable Instruments Act, 1881 (hereafter “NI Act”, for short) living aside the company."

(ii) Whether a deposit of a minimum sum of 20% of the fine or compensation is necessary under Section 148 of NI Act in an appeal filed by persons other than "drawer" against the conviction and sentence under section 138 of the NI Act.

2. Mr. Ponda learned senior advocate on behalf of the accused made the following submissions:

(i) As per section 143A, only a ‘drawer’ of the cheque is required to pay interim compensation and no one else. To attract liability under section 138 of the NI Act, the cheque must be drawn from the account of the drawer. Under the scheme of chapter XVII of the Act, the word ‘drawer’ can never be construed to mean signatory of a cheque from whose account the cheque is not drawn.

(ii) Section 143A of the act uses the word 'drawer'. In the case of an individual's cheque, the drawer is the signatory from whose account the cheque is drawn. Similar would be a case of a company being a legal person, it is a living being who can sign the cheque, but the cheque is issued from the account of the company, and, therefore, the signatory of the cheque does not become a drawer.

(iii) Under sections 30 and 31 of the act, it is the drawer of a cheque who is bound to compensate the holder in case of dishonour. The responsibility and liability for honouring the cheque is that of the drawer only. Such liability arises at the first instance to ensure that the cheque is honoured on presentation. Such responsibility and obligation to honour the cheque can only be traced to the drawer company and not to an individual authorised signatory, whether he is a director or not. If the cheque bounces, the drawer is liable to pay the payee, provided a demand notice is given to him. The requirement to have sufficient funds in the account from which the cheque is issued is only with the drawer company and not the authorised signatory.

(iv) As an illustration, in the case of a large public limited company authorising a salaried employee as a signatory, can such employee be made liable for payment of interim compensation under section 143A for a cheque of thousands of crores. Such a signatory employee has no personal liability concerning the money transaction with the company, which is a legal person.

(v) The power to direct interim compensation under section 143A of the NI Act is of draconian nature and tantamounts to adjudication and compensation amount before adjudication of guilt in a criminal trial. Therefore, such provisions are required to be strictly construed.

(vi) Relying on the judgment of the Apex Court in the case of P.J. Agro Tech Ltd v. Water Base Ltd., reported in (2010) 12 SCC 146, he submitted that a criminal or a quasi-criminal provision has to be strictly construed. Therefore, it would be unjust and unfair to foist the liability to pay interim compensation to a person not covered under the provision.

(vii) Relying on section 143A(5), he submitted that the interim compensation directed under section 143A needs to be recovered as if it is a fine under section 421 of the Code of Criminal Procedure, 1973. Such amount of fine under section 421, can be recovered either by a warrant of attachment or sale of immovable property or by warrant to the Collector authorising him to realise the amount as arrears of land revenue. Moreover, section 183 of Ma