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2022 Supreme(MP) 1295

IN THE HIGH COURT OF MADHYA PRADESH BENCH AT INDORE
Rajendra Kumar Verma, J.
Vishwas Thakur & Ors. – Appellants
Versus
Tarun Tour & Ors. – Respondents
Misc. Criminal Case No. 7989 of 2020
Decided On : 03-09-2022

Advocates Appeared:
Shri Ravindra Singh Parmar, Advocate, for the Appellant; Shri Manoj Malviya, Advocate, for the Respondent

Headnote:

Section 143-A of NI Act - Application of Section 143-A of NI Act - The court held that the provision of Section 143-A of the Negotiable Instrument Act is prospective in nature and is confined to cases where offences were committed after the introduction of the section. Therefore, the court set aside the orders for interim compensation as the complaint was filed prior to the insertion of Section 143-A.

Fact of the Case:

The petitioners filed a petition under Section 482 of Cr.P.C. against the order directing them to pay 20% of the cheque amount to the respondent as interim compensation under Section 143-A of the Negotiable Instrument Act.

Finding of the Court:

The court found that the provision of Section 143-A of the NI Act is prospective in nature and cannot be applied to cases filed prior to its insertion. The trial court and revisional court erred in passing the impugned orders, and the interim compensation cannot be directed to be paid in the case at hand.

Issues: The main issue was the applicability of Section 143-A of the NI Act to cases filed prior to its insertion.

Ratio Decidendi: The court relied on the decision of the Hon'ble Apex Court in the case of G.S.Raja Vs. Tejraj Surana, AIR 2019 SC 3817, which held that the applicability of Section 143-A of the Act is prospective in nature and confined to cases where offences were committed after the introduction of the section.

Final Decision: The petition was allowed, and the orders for interim compensation were set aside. The trial court was directed to conclude the trial without granting interim compensation to the complainant, and both parties were instructed to cooperate in the trial.

ORDER

1. With consent heard finally.

2. Petitioners have preferred this petition under Section 482 of Cr.P.C. against the order dated 27.01.2020 passed by First Additional Sessions Judge, Neemuch in Criminal Revision No.03/2020; whereby, revision petition preferred by the petitioners has been dismissed and the order dated 08.12.2019 passed by the trial Court has been affirmed. By the order passed by trial Court, trial Court has directed to pay 20% of the cheque amount to respondent as interim compensation as per the provisions of Section 143-A of the Negotiable Instrument Act (for short "NI Act"). Petitioners are aggrieved by the said order.

3. At the outset, learned counsel for the petitioners submits that petitioners in the present case are accused and facing trial under Section 138 of NI Act. Respondent filed complaint under Section 138 of NI Act. Section 143-A of NI Act was inserted in the NI Act by amended Act 20 of 2018 by which power to direct interim compensation has been provided; whereby, trial Court could have directed for interim compensation to be paid by the drawer of the cheque to the holder of the cheque.

4. Only grievance raised by the petitioners is that since complaint was filed prior to 1/9/2018 when the amended provisions was inserted therefore, it cannot be applied in respect of case in hand as it is prior in time. He relied upon the decision of Hon'ble Apex Court in the case of G.S.Raja Vs. Tejraj Surana, AIR 2019 SC 3817.

5. Vide order dated 25.02.2020, notice was issued to respondent but nobody turned up on behalf of respondent on 01.04.2022, therefore again when the matter came up on 26.04.2022, notice was issued to the respondent by both modes. Today, counsel has entered appearance on behalf of the respondent and with consent matter is heard finally.

6. Section 143-A of the NI Act has been inserted in the NI Act of 2003 w.e.f. 1/9/2018, which provides a mechanism for grant of interim compensation to the holder of the cheque. Said section 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 the amount of compensation awarded under section 357 of the Code of Criminal Procedure, 1973 (2 of 1974), shall be reduced by the amount paid or recovered as interim compensation under this section."

    7. Now question is whether this provision is to be applied in those cases which were filed prior to insertion of Section 143-A or the Section is prospective in nature.

    8. This aspect has been dealt with by the Hon'ble Apex Court in the case of G.S.Raja (supra) and after due discussion in para 22 has held in categorical t

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