Whether Section 143A of NI Act for Payment of Interim Compensation has Retrospective Effect? SC Issues Notice to Centre

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April 17, 2019

Case name: G.J. Raja v. Tejraj Surana

The seminal issue involved in the case was whether Section 143-A introduced by the Amendment Act of 2018 in the Negotiable Instruments Act, 1881 has retrospective application or not?

The statutory provision under Section 143A of Negotiable Instrument empowers the Court to order the drawer of the cheque to pay Interim Compensation to the complainant where the drawer pleads not guilty to the allegations made in the complaint.

The Two-Judge Bench of the Supreme Court has now issued notice to the Centre in the concerned matter.

Responding to the matter at hand, the Supreme Court as an interim measure has directed the petitioner to deposit interim compensation amounting to 15% of the cheque amount.

The case can be accessed here.