Allahabad High Court
Sudhir Nagar vs State Of U.P. And Another on 6 November, 2025
HIGH COURT OF JUDICATURE AT ALLAHABAD
Neutral Citation No. - 2025:AHC:195700
HIGH COURT OF JUDICATURE AT ALLAHABAD
APPLICATION U/S 528 BNSS No. - 9257 of 2025
Sudhir Nagar
.....Applicant(s)
Versus
State of U.P. and Another
.....Opposite Party(s)
Counsel for Applicant(s)
:
Sunil Kumar
Counsel for Opposite Party(s)
:
G.A., Kapil Kumar
Court No. - 76
HON'BLE VIKRAM D. CHAUHAN, J.
1. Heard learned counsel for the applicant and learned AGA for the State-respondent.
2. This application has been filed by applicant for quashing the impugned order dated 18.4.2024 passed by Additional Civil Judge (Junior Division)/Judicial Magistrate, Court Room No.5, Bulandshahr in Criminal Complaint Case No.1259 of 2018, Mukul Rajora Vs. Sudhir Nagar, under Section 138 Negotiable Instrument Act, Police Station Shikarpur, District Bulandshahr as well as impugned order dated 5.10.2024 passed by Additional District and Session Judge, Court Room No.5, Bulandshahr in Criminal Revision No.159 of 2024, Sudhir Nagar Vs. State of U.P. and others.
3. It is submitted by learned counsel for the applicant that the complaint was filed on 18.5.2018 and on 1.9.2018, Section 143A was introduced in the Negotiable Instruments Act empowering the court for interim compensation, which may not exceed beyond 20 percent. On the date when the complaint was filed or the offence was alleged to have been committed, the aforesaid Section 143A was not in the statute books as such the same is not applicable in the present proceedings as such the impugned order is bad in law.
4. Learned counsel for the applicant has relied upon a judgment of this Court passed in Application U/s 482 No.33355 of 2019, Mukesh Singh Vs. State of U.P. and another dated 17.9.2019. The relevant paragraphs of the aforesaid judgment is quoted hereunder:-
"The argument so raised by learned counsel for the applicant is totally misconceived as even if the cheque has been issued for security purposes, the provisions of Section 138, N.I. Act are attracted. The prayer for quashing the impugned summoning order as well as entire proceedings of the aforesaid case is refused. The order dated 27.7.2019 has been passed under Section 143A of the N.I. Act. Section 143A of the N.I. Act was inserted by way of Act No.20 of 2018 w.e.f. 1.9.2018. The inserted section 143A of the N.I. Act is quoted as under:
"143A. Power to direct interim compensation. ? (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the Court trying an offence under section 138 may order the drawer of the cheque to pay interim compensation to the complainant?
(a) in a summary trial or a summons case, where he pleads not guilty to the accusation made in the complaint; and
(b) in any other case, upon framing of charge.
(2) The interim compensation under sub-section (1) shall not exceed twenty per cent of the amount of the cheque.
(3) The interim compensation shall be paid within sixty days from the date of the order under sub- section (1), or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the drawer of the cheque.
(4) If the drawer of the cheque is acquitted, the Court shall direct the complainant to repay to the drawer the amount of interim compensation, with interest at the bank rate as published by the Reserve Bank of India, prevalent at the beginning of the relevant financial years, within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the complainant.
(5) The interim compensation payable under this section may be recovered as if it were a fine under section 421 of the Code of Criminal Procedure, 1973 (2 of 1974).
(6) The amount of fine imposed under section 138 or the amount of compensation awarded under section 357 of the Code of Criminal Procedure, 1973 (2 of 1974), shall be reduced by the amount paid or recovered as interim compensation under this section."
A reading of Section 143A shows (i) interim compensation must not exceed 20% of the amount of the cheque; (ii) it must be paid within the time stipulated under Sub-Section (3); (iii) if the accused is acquitted, the complainant shall be directed to pay to the accused the amount of interim compensation with interest at the bank rate; (iv) the interim compensation payable under said Section can be recovered as if it were a fine under Section 421 of the Code of Criminal Procedure, 1973 ('the Code', for short); and (v) if the accused were to be convicted, the amount of fine to be imposed under Section 138 of the Act or the amount of compensation to be awarded under Section 357 of the Code would stand reduced by the amount paid or recovered as interim compensation.
The Magistrate vide impugned order dated 27.7.2019 has directed the applicant to make the payment to the extent of 20% of the cheque amount as interim compensation.
In a recent judgment in Criminal Appeal No.1160 of 2019, G.J. Raja Vs. Tejraj Surana, the Apex Court has held the applicability of Section 143A of N.I. Act to be prospective in nature and confined to the cases where offences are committed after introduction of Section 143A of N.I. Act. The relevant paragraph Nos.23 and 24 of the said judgment are quoted as under:
"23. We must, however, advert to a decision of this Court in Surinder Singh Deswal and Ors. vs. Virender Gandhi where Section 148 of the Act which was also introduced by the same Amendment Act 20 of 2018 from 01.09.2018 was held by this Court to be retrospective in operation. As against Section 143A of the Act which applies at the trial stage that is even before the pronouncement of guilt or order of conviction, Section 148 of the Act applies at the appellate stage where the accused is already found guilty of the offence under Section 138 of the Act. It may be stated that there is no provision in Section 148 of the Act which is similar to Sub-Section (5) of Section 143A of the Act. However, as a matter of fact, no such provision akin to sub-section (5) of Section 143A was required as Sections 421 and 357 of the Code, which apply post-conviction, are adequate to take care of such requirements. In that sense said Section 148 depends upon the existing machinery and principles already in existence and does not create any fresh disability of the nature similar to that created by Section 143A of the Act. Therefore, the decision of this Court in Surinder Singh Deswal stands on a different footing.
24. In the ultimate analysis, we hold Section 143A to be prospective in operation and that the provisions of said Section 143A can be applied or invoked only in cases where the offence under Section 138 of the Act was committed after the introduction of said Section 143A in the statute book. Consequently, the orders passed by the Trial Court as well as the High Court are required to be set aside. The money deposited by the Appellant, pursuant to the interim direction passed by this Court, shall be returned to the Appellant along with interest accrued thereon within two weeks from the date of this order."
In view of the decision in G.J. Raja case (supra), the impugned order passed by the Magistrate is not legally sustainable and the applicant cannot be directed to pay the interim compensation to the extent of 20% of the cheque amount as the provisions of Section 143A of the N.I. Act are not at all attracted.
The application stands partly allowed and impugned order dated 27.7.2019 passed by Additional Chief Judicial Magistrate, Khurja, District Bulandshahar in the aforesaid case is, hereby, quashed."
5. Learned counsel for the opposite party no.2 does not dispute the law laid down by this Court in the case of Mukesh Singh (supra).
6. At this stage, learned counsel for the parties agreed that the impugned orders may be quashed.
7. In view of the aforesaid, with the consent of learned counsel for the parties, this application is allowed. The order dated 18.4.2024 passed by (Junior Division)/Judicial Magistrate, Court Room No.5, Bulandshahr in Criminal Complaint Case No.1259 of 2018 and the order dated 5.10.2024 passed by Additional District and Session Judge, Court Room No.5, Bulandshahr in Criminal Revision No.159 of 2024 are hereby set aside. The trial court is directed to decide the complaint and the trial within a period of six months from the date of production of a certified copy of this order.
(Vikram D. Chauhan,J.)
November 6, 2025
Bhaskar
