IN THE HIGH COURT OF MADHYA PRADESH
Satyendra Kumar Singh, J.
Rajendra Kumar Jaat – Appellant
Versus
Lokendra Singh Sendhav – Respondent
Misc. Criminal Case No. 54558 of 2019
Decided On : 13-12-2022
N.I.Act - Cheque Bounce - The court held that the provisions of Section 143A of the Negotiable Instruments Act will be prospective in operation and can only be applied in cases where the offence under Section 138 of the Act was committed after the introduction of Section 143A. The impugned order directing the applicant to deposit 20% of the cheque amount as interim compensation was set aside.
Fact of the Case:
The respondent filed a criminal complaint against the applicant for cheque bounce. The trial court directed the applicant to deposit 20% of the cheque amount under Section 143A of the Negotiable Instruments Act.
Finding of the Court:
The court found that the cheques in dispute were given prior to the enforcement of Section 143A, and therefore, the impugned order directing the deposit was not sustainable. The court allowed the petition and ordered the money deposited to be returned to the applicant.
Issues: Interpretation of Section 143A of the Negotiable Instruments Act, retrospective application of the provision, and the validity of the trial court's order.
Ratio Decidendi: The provisions of Section 143A of the Negotiable Instruments Act are prospective in operation and can only be applied in cases where the offence under Section 138 of the Act was committed after the introduction of Section 143A.
Final Decision: The petition is allowed, and the money deposited by the applicant pursuant to the impugned order shall be returned to the applicant.
Key Points:- The provisions of Section 143A are prospective in operation and can only be applied to offences under Section 138 that were committed after the introduction of Section 143A. (!) (!) - The impugned order directing deposit of 20% of the cheque amount under Section 143A is not sustainable when the cheques were issued prior to the enforcement of Section 143A, and money deposited must be returned. (!) (!) - The judgment aligns with the proposition that Section 143A cannot be applied with retrospective effect to cases where the offence under Section 138 was committed before its introduction. (!) - The petition is allowed and the applicant is entitled to have the deposited money returned, along with interest as applicable, in cases where the offence predated Section 143A. (!) - The decision references the need to interpret Section 143A as applicable only to post-introduction offences, affecting both trial and High Court orders accordingly. (!)
ORDER
1. This petition under Section 482 of Cr.P.C.has been preferred against the order dated 6.8.2018 passed by the Court of Judicial Magistrate First Class, Bagli, District Dewas in Cri.Complaint Case bearing No.SCNIA No.20/2018, whereby applicant was directed to deposit 20% of the cheque amount under Section 143A of Negotiable Instruments Act (for short 'N.I.Act').
2. Brief facts giving rise to this petition are that respondent filed a criminal complaint under Section 138 of N.I.Act against the applicant before the Court of Judicial Magistrate First Class, Bagli, District Dewas alleging that cheques bearing No.000054 dated 21.9.2017 amounting Rs.7,40,000/- and cheque bearing No.000055 dated 21.11.2017 amounting Rs.7,50,000/- were given by the applicant to the respondent in lieu of the dues in the light of the terms and conditions embodied under the agreement dated 27.8.2015, which was duly executed between the applicant and respondent for purchase of Tractor. On the said criminal complaint case bearing SCNIA No.20/2018 was registered against the applicant, wherein vide impugned order dated 6.8.2018 applicant was directed to deposit 20% of the cheque amount within sixty days from the date of order in the light of the provisions embodied under Section 143A of Negotiable Instruments (Amendment) Act, 2018. In compliance to the aforesaid order applicant deposited 20% of the aforesaid cheque amount on 29.11.2018 and 6.12.2018.
3. Learned counsel for the applicant submits that Hon'ble the Apex Court in the case of G.J.Raja Vs. Tejraj Surana (Cri.Appeal No.1160 of 2019 @ SLP (Cl.) 3342 of 2019) has held that provisions of Section 143A of N.I.Act will be applied only in case where the offence under Section 138 of N.I.Act was committed after the enforcement of the amended provisions of Section 143A of N.I.Act. Applicant's case is purely covered and governed by the aforesaid judgment. Learned trial Court has committed error in applying the provisions of Section 143A of N.I.Act with retrospective effect. Hence, the impugned order is liable to be set aside.
4. Learned counsel for the respondent has opposed the prayer and submits that admittedly, the trial pending against the applicant has been almost completed, therefore, at this stage prayer made by the applicant cannot be allowed. Petition is devoid of merit and the same be dismissed.
5. Heard learned counsel for both the parties and perused the record.
6. From the judgment passed by the Hon'ble Apex Court in the case of G.J.Raja Vs. Tejraj Surana (supra), it is apparent that the law has been settled that provisions of Section 143A of N.I.Act will be prospective in operation. Relevant para is as follows:-
'In the ultimate analysis, we hold Section 143A to be prospective in operation and that the provisions of said Section 143A can be applied or invoked only in cases where the offence under Section 138 of the Act was committed after the introduction of said Section 143A in the statute book. Consequently, the orders passed passed by the Trial Court as well as the High Court are required to be set aside. The money deposited by the Appellant, pursuant to the interim direction passed by this Court, shall be returned to the Appellant along with interest accrued thereon within two weeks from the date of this order.'
7. Upon perusal of the record it is apparent that the cheques in dispute were given on 21.9.2017 and 21.11.2017 i.e. prior to the enforcement of Section 143A of N.I.Act, therefore, impugned order dated 6.8.2018 directing the applicant to deposit 20% of the cheque amount within sixty days from the date of order as interim compensation is not sustainable and is liable to be set aside. Accordingly, the petition is allowed. The money deposited by the applicant pursuant to the aforesaid impugned order shall be returned to the applicant.
The provisions of Section 143A of the Negotiable Instruments Act are prospective in operation and can only be applied in cases where the offence under Section 138 of the Act was committed after the i....
Section 143-A of the Negotiable Instruments Act requires courts to evaluate both parties' merits before ordering interim compensation, emphasizing the necessity for reasoned decisions.
Section 143A of the Negotiable Instruments Act is prospective and cannot be applied to offences committed before its enactment.
The court emphasized the importance of considering the specific provisions of Section 143-A of the Negotiable Instruments Act when ordering interim compensation in cases of cheque dishonor.
Section 143A of the Negotiable Instruments Act is prospective only, affecting cases post-enactment.
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