Case Note & Summary
The petitioner, Ashok Ratanlal Khatod, challenged an order passed by the Judicial Magistrate First Class, Wani, in Summary Criminal Case No. 1818/2018, directing him to deposit 20% of the cheque amount as interim compensation under Section 143A of the Negotiable Instruments Act, 1881. The respondent, Sunita Sanjay Pawade, had filed a complaint alleging that the petitioner issued nine cheques totalling various amounts for commission payable as an agriculturist, which were dishonoured with the endorsement 'Exceed Arrangement'. The complaint was filed on 01.09.2018. During the pendency of the complaint, the respondent filed an application under Section 143A, which was allowed by the Magistrate on 05.07.2019. The petitioner contended that Section 143A was inserted by the Negotiable Instruments (Amendment) Act, 2018, which came into force on 01.09.2018, and since the complaint was filed on the same date, the provision could not apply retrospectively. The court examined the language of Section 143A and the amending Act, noting that the amendment was prospective. The court held that the Magistrate's order was without jurisdiction as the complaint was filed prior to the provision coming into effect. The writ petition was allowed, the impugned order was quashed, and the Magistrate was directed to proceed with the complaint without insisting on the deposit.
Headnote
A) Criminal Law - Negotiable Instruments Act - Section 143A - Retrospectivity - Section 143A of the Negotiable Instruments Act, 1881, inserted by the Amendment Act of 2018, is prospective in nature and does not apply to complaints filed prior to its commencement. The court held that the Magistrate erred in directing the petitioner to deposit 20% of the cheque amount as interim compensation under Section 143A in a complaint filed on 01.09.2018, before the provision came into force on 01.09.2018. The order was quashed and set aside. (Paras 5-6)
Issue of Consideration
Whether Section 143A of the Negotiable Instruments Act, 1881, which empowers the court to direct the accused to pay interim compensation, applies to complaints filed before the provision was inserted by the Amendment Act of 2018.
Final Decision
The writ petition is allowed. The impugned order dated 05.07.2019 passed by the learned Judicial Magistrate First Class, (Court No.3), Wani, below Exh.24 in Summary Criminal Case No. 1818/2018 is quashed and set aside. The learned Magistrate is directed to proceed with the complaint without insisting on the deposit of 20% amount.
Law Points
- Section 143A of Negotiable Instruments Act
- 1881 is not retrospective
- cannot be applied to complaints filed before its insertion
- direction to deposit 20% of cheque amount as interim compensation is without jurisdiction if complaint was filed prior to amendment
