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2024 Supreme(J&K) 272

HIGH COURT OF JAMMU AND KASHMIR AND LADAKH
SINDHU SHARMA, J.
Beeka Mohd. - Appellant
Versus
Mukesh Kumar - Respondent
CRM(M) No. 970 of 2023
Decided on : 26-2-2024

Advocates:
Advocate Appeared:
For the Appellant : Siddhant Gupta
For the Respondent: Jagpaul Singh

Section 143A of the Negotiable Instruments Act is prospective and cannot be applied to offences committed before its enactment.

Headnote:(A) Negotiable Instruments Act, 1881 - Sections 138 and 143A - Quashing of orders - Petitioner challenged orders for interim compensation under Section 143A, arguing it was not applicable retrospectively as the offence occurred before the amendment - The court held that Section 143A is prospective and cannot be applied to offences committed prior to its enactment. (Paras 5, 8, 10, 12)

(B) Jurisdiction - Inherent jurisdiction under Section 482 Cr.P.C. - The court emphasized the need for proper application of law regarding amendments and their temporal applicability. (Paras 1, 4, 11)

Facts of the case:
The petitioner faced a complaint for dishonor of cheques issued prior to the amendment of Section 143A, which introduced provisions for interim compensation. The petitioner contended that the amendment could not be applied retrospectively.

Findings of Court:
The court found merit in the petition, ruling that Section 143A is prospective and set aside the orders granting interim compensation.

Issues: The primary issue was whether Section 143A of the Negotiable Instruments Act could be applied retrospectively to offences committed before its introduction.

Ratio Decidendi: The court concluded that Section 143A is prospective in nature, aligning with the Supreme Court's interpretation, and thus the orders granting interim compensation were invalid.

Result: Petition allowed; orders set aside.

JUDGEMENT

1. Petitioner has invoked the inherent jurisdiction of this Court under section 482 Cr.P.C. for quashing order dated 25.07.2019 passed by the learned Principal Sessions Judge, Kathua, in criminal appeal titled 'Beeka Mohd. alias Vicky vs. Mukesh' along with order dated 23.03.2019, passed by the learned District Judicial Mobile Magistrate (T), Kathua in a complaint titled 'Mukesh Kumar vs. Beeka Mohd. alias Vicky'.

2. A complaint under section 138 of the Negotiable Instrument Act (hereinafter referred to as 'the Act') was filed by the respondent-Mukesh Kumar against the petitioner-Beeka Mohd. for dishonor of two cheques bearing Nos. 377762 & 377763, dated 14.01.2018, for an amount of Rs. 8 lacs and Rs. 5 lacs. The learned Magistrate took cognizance of the offence and issued process against the petitioner. The petitioner appeared in response to the same and pleaded not guilty and the complainant/ respondent was directed to lead evidence.

3. The learned Magistrate invoked its jurisdiction under section 143-A of Negotiable Instrument Act (Amendment) Act, 2018 and directed the petitioner to pay 20% of the cheque amount i.e. Rs. 2,60,000/- to the complainant within a period of 60 days, from the date of passing of the order, i.e. 22.03.2019.

4. The petitioner, aggrieved of the aforesaid order, preferred an appeal before the Court of learned Principal Sessions Judge, Kathua. The appeal was treated as revision petition and was dismissed vide impugned order dated 25.07.2019, by holding that the order does not suffer from any illegality to warrant exercise of revisional jurisdiction.

5. The legality of the impugned order has been assailed by the petitioner on the ground that the alleged offence is said to have been committed on 27.08.2018, much before the introduction of Section 143A of the Act through Amendment Act 20 of 2018 on 01.09.2018, which is prospective in nature and cannot be applied retrospectively to cases where the offence was committed after the amendment.

6. The learned Revisional Court, while accepting the fact that the complaint under section 138 of the N.I. Act was filed before Section 143A of the Act was introduced by the Act by way of an amendment in 2018, but held that since the Amendment/Act is silent whether the same is to be applied retrospectively or prospectively and relied upon the judgment of the Hon'ble Supreme Court in “[1]Surinder Singh Deswal vs. Virender Gandhi” reported as AIR 2019 SC 2956, wherein the applicability of Section 143A was not directly in question but application of Section 148 was for determination and since Section 148 also came to be introduced through the same amendment, which introduced Section 143A, the objects for the amendment were same, therefore, the Hon'ble Supreme Court dealt with the same and held that the provisions contained in Section 143A are applicable retrospectively. [2]Relevant Para-4 is reproduced as under:-

    “4. The effect of section 143A of the Negotiable Instrument Act regarding its applicability to the pending cases, need not require a very detailed discussion and this court can safely adopt the very same reasoning given by the Hon'ble Supreme Court in the above judgment. The amendment through which section 143A was brought into force will be applicable even pending proceedings. If such a purposive interpretation is not given to this provision, it will defeat the very purpose of amendment which was brought in as a beneficial piece of legislation for the complainant prosecuting a criminal complaint under section 138 of the Negotiable Instrument Act.”

7. The Revisional Court, considering aforementioned aspects and judgment in “L.G.R. Enterprises and another vs. P. Anbazhagan”, CrL.O.P. No. 15438 of 2019 and 15440 of 2019 & CrL.M.P. Nos. 7576 and 7578 of 2019 held that the order of the trial Court is supported by reasons and held that the impugned order is not assailable by reasons on this ground only and cannot be held illegal.

8. The issue regarding the applicabili

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