The judgment establishes the prospective application of Section 143A of the N.I. Act to cases where the offence under Section 138 was committed after its introduction.

JUDGMENT

Arun Kumar Tyagi, J. (Oral) - The petitioner-accused has filed the present petition under Section 482 of the Code of Criminal Procedure, 1973 (for short 'the Cr.P.C) for quashing of order dated 18.12.2019 passed by learned Judicial Magistrate 1st Class, Patiala in complaint case No. 5017 of 2018 titled as Rakesh Jindal vs. Jatin Chawla filed under Section 138 of the Negotiable Instruments Act, 1881 (for short 'the N.I. Act') whereby the petitioner-accused was directed to pay interim compensation to the tune of 20% of the cheque amount to the complainant.

2. Briefly stated the facts giving rise to the filing of the present petition are that the respondent filed above said complaint alleging that pursuant to his admission of legal liability on 06.05.2018, the petitioner-accused entered into a compromise dated 27.05.2018 undertaking to make payment of Rs. 18 lakhs and issued six post dated cheques in discharge of legal liability. On presentation cheque No. 767712 dated 25.07.2018 drawn for an amount of Rs. 3 lakhs on SBI, YPS Branch Patiala was dishonoured with remarks 'Funds Insufficient 'vide memo dated 09.08.2018. The respondent-complainant served legal notice dated 29.08.2018 but the petitioner-accused failed to make payment within the stipulated period of 15 days from the date of receipt of the notice. Preliminary evidence of the complainant was recorded and the petitioner-accused was summoned to face trial. The respondent-complainant filed application under Section 143-A of the N.I Act which was opposed by the petitioner-accused on the ground of inapplicability of Section 143-A of the N.I. Act. The application was allowed by learned Judicial Magistrate 1st Class, Patiala vide impugned order dated 18.12.2019. Feeling aggrieved, the accused has filed the present petition.

3. In view of the nature of relief claimed and the facts and circumstances of the case issuance of notice to the respondent-complainant is considered to be unnecessary and is dispensed with.

4. I have heard learned Counsel for the petitioner and gone through the record.

5. Learned Counsel for the petitioner has argued that Section 143A of the N.I. Act is not retrospective and is not applicable to cheque in the present case which was dishonoured on 09.08.2018. The impugned order suffers from material illegality and the same may be set aside.

6. Section 143-A of the N.I. Act was inserted by the Negotiable Instruments (Amendment) Act, 2018 (20 of 2018) w.e.f. 01.09.2018 and the same reads as under:

"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 trial or a summons 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.

(4) 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.

(5) 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, (2 of 1974).

(6) The amount of fine imposed under section 138 or