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2020 Supreme(MP) 1129

IN THE HIGH COURT OF MADHYA PRADESH (INDORE BENCH)
S.K. AWASTHI, J.
Sanjay Singh Goud - Appellant
Versus
M/s Firm Swariya Sewa Kendra Devgad and Another - Respondents
M.Cr.C. No. 46612 of 2019
Decided On : 27-02-2020

Advocates Appeared:
For the Appellant : Shri M.A. Mansoori.
For the Respondent: Shri Nilesh Dave.

Section 143-A of the NI Act can only be applied to cases where the offence under Section 138 of the Act was committed after the introduction of Section 143-A in the statute book.

Headnote:

Section 143-A of the Negotiable Instruments Act, 1881 - Interim Compensation - Court held that Section 143-A can only be applied to cases where the offence under Section 138 of the Act was committed after the introduction of Section 143-A in the statute book.

Fact of the Case:

The respondent/complainant filed a criminal complaint against the applicant for dishonoring a cheque issued for the purchase of diesel. The trial Court allowed the application under Section 143-A of the NI Act, directing the applicant to pay 20% of the cheque amount as interim compensation.

Finding of the Court:

The Court found that the trial Court erred in directing the applicant to pay interim compensation under Section 143-A, as the offence occurred before the introduction of Section 143-A in the statute book. The petition filed under Section 482 of the Cr.P.C. was allowed, and the order of the trial Court was set aside.

Issues: The main issue was whether the trial Court was correct in directing the applicant to pay interim compensation under Section 143-A of the NI Act for an offence committed before the introduction of Section 143-A.

Ratio Decidendi: The Court held that Section 143-A of the NI Act can only be applied to cases where the offence under Section 138 of the Act was committed after the introduction of Section 143-A in the statute book.

Final Decision: The petition filed under Section 482 of the Cr.P.C. was allowed, and the order of the trial Court was set aside.

ORDER :

1. The applicant/accused has preferred this petition under Section 482 of the Cr.P.C. against order dated 18/07/2019 passed by Judicial Magistrate First Class, Bagli, District-Dewas in Criminal Case No.63/2017, whereby the application filed by the respondents/complainant under Section 143-A of the Negotiable Instruments Act, 1881 (in brief NI Act) has been allowed and the applicant is directed to pay 20% of the cheque amount to the respondents/complainant as interim compensation.

2. Briefly stated facts rising to the present petition are that the respondents/complainant has filed a criminal complaint against the applicant before the Court of Judicial Magistrate First Class, Bagli alleging that the applicant has purchased the diesel worth of Rs.7.0 Lacs on credit from the petrol pump of the respondents/complainant and for the payment of the aforesaid amount, the applicant has issued cheque No. 000460 amounting to Rs.7.0 Lacs in favour of the respondents/complainant, which was dishonoured by the Bank with a remark 'insufficient funds'. Thereafter, the respondents/complainant gave statutory notice to the applicant for payment of the cheque amount, however, even after service of the said notice, applicant has not made any payment to the respondents/complainant, therefore, the respondents/complainant filed the complaint under Section 138 of the NI Act against the applicant, which was got registered as Criminal case No. 63/2017. The applicant was summoned and after his appearance the particular of offence read over to him and the case was fixed for recording of the evidence.

3. On 18/07/2019, the respondents/complainant moved an application under Section 143-A of the NI Act before the trial Court, the same was allowed, vide impugned order and the trial Court direct that 20% of the cheque amount be made over by the applicant to the respondents/complainant as interim compensation in accordance with the provisions of Section 143 A of the NI Act. Being aggrieved with the aforesaid order, the applicant has preferred the present petition before this Court.

4. Having heard learned counsel for the parties and perused the record.

5. With effect from 01/09/2018, Section 143-A was inserted in the NI Act by Amendment Act 20 of 2018. Said Section is to the following effect:-

    "143 A. Power to direct interim compensation:-

(1) 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 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 percent. 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 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.

(6) 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.".

6. Learned counsel for the applicant has placed reliance on the judg

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