April 22, 2019:
Allahabad High Court has held that a complainant in a cheque bounce case is entitled for interim compensation even in cases which were pending at the date of amendment as the same is retrospective in nature.
A bench of Justice Arvind Kumar Mishra has passed the order in case titled Vivek Kumar Negi vs State Of U.P. on 11.04.2019.
We have already brought to your notice on previous occasions judgments from two different High Courts on the point of interim compensation; one had taken a view in favour of accused whereas the other had taken a view in favour of complainant. Read the story for accused here and for complainant here. Today again we are bringing another story this time from Allahabad High Court and this goes in favour of complainant.
In a cheque bounce case, Additional Chief Judicial Magistrate, Gautam Budh Nagar passed an order of interim compensation in favour of the complainant. The Accused challenged the said order before the High Court.
Learned counsel for the accused contended that Section 143(A)(1) of the Negotiable Instrument Act, 1881 has been inserted by Act No.20 of 2018 and has its effect from 1.9.2018, whereas in this case the proceedings were launched in the month of May, 2018 and that way the award of interim maintenance was not justified and the same is illegal.
The High Court posed a pertinent question as “The point in issue whether the amendment brought and incorporated under Section 143(A) (1) of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the Act') is applicable retrospectively nor not?”
The High Court opined as “In so far as amendment is concerned, the amendment is of procedural nature and not of substantive nature. Moreover in matters of applicability of the amendment (under Section 143(A) proceedings launched in the matters pending prior to the incorporation of the amendment there is no express bar in the Act. It being so, the amendment will be applicable even to the proceeding pending prior to the date of incorporation of the amendment as 143(A) in the matters involving provisions of the Negotiable instrument Act, 1881”.
High Court therefore upheld the order of interim compensation as passed by the Magistrate in favour of the complainant.
Read the order here:
Share this Document :Picture Source :
