In Brief
The appellant was charged under Section 138 of the Negotiable Instruments Act for dishonoured cheques totalling Rs. 35 lakhs issued in 2016. The trial court ordered him to pay 20% of the cheque amount (Rs. 7 lakhs) as interim compensation under Section 143A, inserted in September 2018. The High Court reduced this to 15%. The Supreme Court held that Section 143A, creating new substantive liabilities and coercive recovery mechanisms, cannot be applied retrospectively to offences committed before its enactment. Since the cheques were dishonoured in 2016, before Section 143A existed, the provision did not apply. The Court allowed the appeal and directed return of the deposited amount with interest."
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