Prospective operation of interim compensation under cheque dishonour law limits pre-conviction liability and coercive recovery.

Section 143A of the Negotiable Instruments Act creates a new pre-conviction liability by authorising interim compensation and coercive recovery through Section 421 CrPC, so it is substantive in nature. In the absence of express retrospective intent or necessary implication, such a provision cannot apply to offences under Section 138 committed before its commencement. The distinction from Section 148 was material because that provision operates only at the appellate stage after conviction and does not impose the same pre-trial burden. Orders directing interim compensation were therefore set aside.

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Issues: Whether Section 143A of the Negotiable Instruments Act, 1881 applies retrospectively to offences under Section 138 committed before its insertion.

Analysis: Section 143A authorises interim compensation before adjudication of guilt and makes its recovery possible through the coercive machinery of Section 421 of the Code of Criminal Procedure, 1973. The provision therefore creates a new liability and exposes the accused to a new disability and coercive recovery mechanisms at the trial stage, unlike post-conviction provisions that operate after guilt is determined. In the absence of express retrospective intent or necessary implication, such a provision affecting substantive rights is presumed to operate prospectively. The distinction between Section 143A and Section 148 of the same Act was material, because the latter operates at the appellate stage after conviction and does not create the same new burden.

Conclusion: Section 143A is prospective only and cannot be invoked for offences under Section 138 committed before its commencement. The orders directing interim compensation were liable to be set aside, and the appeal succeeded.

Ratio Decidendi: A statutory provision that creates a new pre-conviction monetary liability and authorises coercive recovery is substantive in nature and, absent express or implied retrospective intent, operates prospectively only.

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