In Brief
This appeal challenged an interim compensation order under Section 143A of the Negotiable Instruments Act, 1881, directing the appellant to pay 15% of dishonoured cheque amounts before trial. The cheques were issued in 2016, but Section 143A was inserted only on 01.09.2018. The Supreme Court held that Section 143A is prospective in operation and cannot apply to offences committed before its enactment. The Court reasoned that Section 143A creates a new substantive disability by imposing pre-conviction payment obligations with coercive State recovery machinery, distinct from traditional post-conviction penalties. Accordingly, the interim compensation orders were set aside and deposited funds ordered returned with interest.
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