Case Note & Summary
The petitioner, accused in a cheque dishonour case under Section 138 of the Negotiable Instruments Act, 1881, challenged two orders passed by the II Additional Senior Civil Judge and JMFC, Kolar. The first order dated 10.01.2022 directed the petitioner to pay interim compensation of 20% of the cheque amount under Section 143A of the NI Act. The second order dated 11.07.2022 rejected the petitioner's application under Section 311 of CrPC to recall the complainant for cross-examination. The High Court held that Section 143A was inserted with effect from 01.09.2018 and is prospective in operation. Since the cheque in question was issued prior to that date, the order for interim compensation was not sustainable. Regarding the Section 311 application, the Court found that the complainant had already been discharged after cross-examination, and the petitioner sought to recall him to fill a lacuna in his defence. The Court held that Section 311 cannot be used for such a purpose and that the trial court had correctly rejected the application. Consequently, the High Court quashed the order under Section 143A and remanded the matter for reconsideration of the quantum of interim compensation, while upholding the rejection of the Section 311 application.
Headnote
A) Negotiable Instruments Act - Interim Compensation - Section 143A - Prospective Application - The order directing payment of interim compensation under Section 143A of the NI Act is not sustainable as the provision was inserted with effect from 01.09.2018 and the cheque in question was issued prior to that date - Held that Section 143A is prospective in operation and cannot be applied to transactions prior to its enactment (Paras 5-6). B) Criminal Procedure Code - Recall of Witness - Section 311 - Lacuna in Evidence - The application under Section 311 CrPC to recall the complainant for cross-examination was rightly rejected as it was filed after the complainant was discharged and the accused sought to fill a lacuna in his defence - Held that Section 311 cannot be used to fill a lacuna in the prosecution case or to delay proceedings (Paras 7-8).
Issue of Consideration
Whether the order directing payment of interim compensation under Section 143A of the Negotiable Instruments Act, 1881 is valid when the cheque was issued prior to the insertion of the provision, and whether the rejection of application under Section 311 of CrPC to recall the complainant for cross-examination is sustainable.
Final Decision
The order dated 10.01.2022 under Section 143A of NI Act is quashed and the matter is remanded to the trial court for reconsideration of the quantum of interim compensation. The order dated 11.07.2022 rejecting the application under Section 311 CrPC is upheld.
Law Points
- Section 143A of Negotiable Instruments Act
- 1881 is prospective in operation
- Section 311 of CrPC cannot be used to fill lacuna in prosecution case
