Negotiable Instruments Act Section 143A — Power to direct interim compensation
CHAPTER XVI O F I N T E R N A T I O N A L LA W
General
Summary
In a cheque bounce case, the court can order the person who wrote the cheque to pay a temporary amount to the person who filed the complaint. This can happen if the accused pleads not guilty in a summary trial or summons case, or when formal charges are framed in other cases. This temporary payment cannot be more than 20% of the cheque amount and must be paid within 60 days of the court’s order, though the court can extend this by up to 30 more days if there is a good reason. If the accused is later found not guilty, the complainant must return the temporary amount with interest at the Reserve Bank of India’s bank rate within 60 days of that order, or within an extended period of up to 30 days for a valid reason. This temporary payment can be collected like a fine, and any final fine or compensation ordered later will be reduced by the amount already paid.
Official Text
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, 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 year, 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.]