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Issues: Whether the order directing deposit of 20% of the cheque amount under Section 143A could be sustained when the alleged offence under Section 138 had been committed before the insertion of Section 143A.
Analysis: The governing principle applied was that Section 143A of the Negotiable Instruments Act operates prospectively and is confined to cases where the offence under Section 138 was committed after its insertion. The provision was introduced with effect from 01.09.2018 and cannot be invoked for earlier offences merely because the complaint or trial was pending. The distinction between Section 143A, which operates at the trial stage and creates an interim compensation liability, and Section 148, which operates at the appellate stage, supports this conclusion.
Conclusion: The deposit direction under Section 143A was unsustainable and was quashed. The trial court was directed to proceed with the trial expeditiously.
Final Conclusion: The petitioner succeeded and the impugned interim compensation order was set aside on the ground that Section 143A does not apply to offences committed before its commencement.
Ratio Decidendi: Section 143A of the Negotiable Instruments Act is prospective in operation and applies only to offences under Section 138 committed after its insertion.
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