Prospective operation of limitation amendment under the Negotiable Instruments Act barred revival of an earlier complaint

An amendment inserting a proviso to Section 142(b) of the Negotiable Instruments Act, allowing extension of limitation on sufficient cause, was held to operate prospectively because it did not express or imply retrospective effect. Statutes affecting substantive rights are presumed prospective unless the legislature clearly indicates otherwise. Since the complaint had been filed before the amendment came into force and no basis was pleaded to apply the later provision, the earlier complaint could not be saved by the amendment, and the proceedings were quashed.

---

---

Issues: Whether the amendment inserted in Section 142(b) of the Negotiable Instruments Act, 1881 by Act 55 of 2002, enabling extension of limitation on sufficient cause being shown, applied retrospectively to a complaint filed before the amendment and, if not, whether the complaint proceedings were liable to be quashed.

Analysis: The amendment creating a proviso for condonation of delay in filing the complaint was not expressed to operate retrospectively and nothing in its language indicated an intended retrospective effect. The legal position is that statutes affecting substantive rights ordinarily operate prospectively, with a presumption against retrospectivity unless the legislative intent clearly provides otherwise. On the facts, the complaint had been instituted before the amendment came into force, and the respondent had not pleaded any basis to apply the amended provision to the earlier complaint. The High Court therefore could not sustain the complaint by applying the later amendment to an earlier cause.

Conclusion: The amendment to Section 142(b) of the Negotiable Instruments Act, 1881 did not apply retrospectively, and the complaint proceedings were rightly quashed.

Ratio Decidendi: An amendment affecting limitation in criminal complaint proceedings is prospective unless the statute expressly or by necessary implication provides retrospective operation.

---