Section 143-A applies when Section 138 offence completes after notice period, not on cheque dishonour date.

For applying Section 143-A of the Negotiable Instruments Act, the relevant date is when the Section 138 offence is completed, namely on expiry of the fifteen-day period after receipt of notice if payment is not made, and not the earlier date of cheque dishonour. Since notice was received on 20.08.2018 and the statutory period expired on 04.09.2018, after Section 143-A came into force on 01.09.2018, the amended provision applied to the complaint. The Gujarat HC therefore upheld the orders directing interim compensation and rejected the challenge to them.

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Issues: Whether Section 143-A of the Negotiable Instruments Act, 1881 applied to a complaint under Section 138 where the cheque was dishonoured before 01.09.2018 but the statutory period for payment after notice expired after the amendment came into force.

Analysis: The Court held that the ratio in the decision holding Section 143-A to be prospective had to be applied in the light of when the offence under Section 138 is completed. It distinguished between dishonour of the cheque and completion of the offence, noting that the offence under Section 138 is not complete on dishonour alone but only after the drawer fails to pay within fifteen days of receipt of notice under the proviso. On the admitted facts, notice was received on 20.08.2018, the fifteen-day period expired on 04.09.2018, and the amended provision came into force on 01.09.2018. The Court therefore concluded that the offence was committed after the amendment became operative.

Conclusion: Section 143-A was applicable to the complaint, and the orders directing payment of interim compensation did not call for interference.

Final Conclusion: The challenge to the orders of the courts below failed, and the petition was dismissed.

Ratio Decidendi: For the purpose of Section 143-A, the relevant date is when the offence under Section 138 is completed on expiry of the statutory period after notice, not the date of mere dishonour of the cheque.

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