Interim compensation under cheque dishonour law upheld where the complaint was post-amendment and the statutory ceiling was not exceeded.

Section 143-A of the Negotiable Instruments Act empowers the trial court in a cheque dishonour complaint filed after the amendment to award interim compensation on a discretionary basis when the drawer pleads not guilty, subject to the statutory ceiling of 20% of the cheque amount. As the complaint was filed after the amendment, the accused had pleaded not guilty, and the trial court acted within the prescribed limit after hearing both sides, the order directing interim compensation was upheld and no interference was warranted.

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Issues: Whether the order directing payment of interim compensation equal to 20% of the cheque amount under Section 143-A of the Negotiable Instruments Act, 1881 called for interference.

Analysis: Section 143-A authorises the court trying an offence under Section 138 to order interim compensation where the drawer pleads not guilty, and the compensation cannot exceed 20% of the cheque amount. The provision was introduced by amendment and applies prospectively to complaints filed after the amendment came into force. The complaint in the case was filed after the amendment, the trial court had heard both sides, and the accused had pleaded not guilty. The impugned order did not exceed the statutory ceiling and reflected an exercise of discretion consistent with the object of the amendment.

Conclusion: The order directing interim compensation was upheld and no ground for interference was made out.

Ratio Decidendi: In a cheque dishonour complaint filed after the amendment, Section 143-A of the Negotiable Instruments Act, 1881 empowers the trial court to award interim compensation up to 20% of the cheque amount on a discretionary basis when the drawer pleads not guilty.

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