Section 143A Negotiable Instrument Act has prospective application; SC.

Supreme Court of India

Justice U U Lalit and Justice Vineet Saran

The SC {G.J. Raja versus Tejraj Surana} holds that the amendment in the Negotiable Instrument Act - whereby the power to grant compensation not exceeding 20% of the amount of cheque was given to the court trying an offence under Section 138 after framing of notice upon the accused - is prospective in operation and would be applicable for the offences committed on or after 1st of September 2018.

It was held that Section 143A not only creates a new disability or an obligation, but also exposes the accused to coercive methods of recovery of such interim compensation through the machinery of the state as if the interim compensation represented arrears of land revenue. It was also held that prior to the insertion of Section 143A in the Act there was no provision on the statute book whereunder even before the pronouncement of the guilt of an accused, or even before his conviction for the offence in question, he could be made to pay or deposit interim compensation. By way of amendment, now the person would, therefore, be subjected to a new disability or obligation. It was held, therefore, the applicability of Section 143A of the Act must be held to be prospective in nature and confined to cases where offences were committed after the introduction of Section 143A by the SC.