LexG. .J. RAJA versus TEJRAJ SURANA
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A B C D E F G H 910 SUPREME COURT REPORTS [2019] 10 S.C.R. G. .J. RAJA v. TEJRAJ SURANA (Criminal Appeal No.1160 of 2019) JULY 30, 2019 [UDAY UMESH LALIT AND VINEET SARAN, JJ.] Negotiable Instruments Act, 1881 – s.143A inserted by Amendment Act, 2018 w.e.f 01.09.2018 – Operation of – Retrospective or prospective – On 04.11.2016 Respondent filed complaint stating that two cheques of Rs.20,00,000/- and Rs.15,00,000/- were issued by the appellant in his favour, however the cheques were dishonoured –s.143A was inserted in the Act by Amendment Act, 2018, w.e.f 01.09.2018 – In terms of s.143A, the Trial Court ordered that 20% of the cheque amount be made over by the Appellant to the Respondent as interim compensation and directed the appellant to pay to the Respondent a sum of Rs.7,00,000/ - – High Court upheld the order but reduced the percentage from 20% of the cheque amount to 15% of the cheque amount – Held: Sub-Sec.(5) of s.143A stipulates that the interim compensation could be recovered as if it were a fine u/s. 421, CrPC – s.421 appears in Chapter XXXII of the Code dealing with ‘Execution, Suspension, Remission and Commutation of Sentences’ – By very context and the language of the provisions contained in the Chapter, they apply in cases where the guilt of an accused is determined and he is convicted of an offence punishable with sentence and/or fine – Part-C of the Chapter deals with ‘Levy of Fine’ and s.421 appearing in the said Part inter alia states that fine could be recovered either by warrant of attachment or sale of movable property belonging to the offender – In case an accused, against whom an order to pay interim compensation u/s.143A is passed, fails or is unable to pay the same, the process u/s.421 can be taken resort to which may inter alia result in coercive action of recovery of the amount of interim compensation as if the amount represented the arrears of land revenue – In the present case, the complaint was lodged in 2016 – Thus, the act constituting an offence had occurred by 2016 whereas, the concerned provision viz. s.143A was inserted w.e.f 01.09.2018 – Prior to the insertion of s.143A there was no provision on the [2019] 10 S.C.R. 910 910 A B C D E F G H 911 statute book whereunder even before the pronouncement of the guilt of an accused, or even before his conviction for the offence in question, he could be made to pay or deposit interim compensation – Person would, therefore, be subjected to a new disability or obligation – Applicability of s.143A prospective in nature and confined to cases where offence u/s.138 was committed after its introduction – Orders passed by the Trial Court and the High Court set aside – Money deposited by the appellant pursuant to the interim direction passed by Supreme Court be returned to the appellant along with interest accrued – Code of Criminal Procedure, 1973 – ss.357 and 421 – Negotiable Instruments (Amendment) Act, 2018 – Interpretation of Statutes. Allowing the appeal, the Court HELD: 1.1 A reading of Section 143A, Negotiable Instruments Act, 1881 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; 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. Sub- Section (5) of Section 143A stipulates that the interim compensation could be recovered as if it were a fine under Section 421 of the Code. Section 421 appears in Chapter XXXII of the Code which Chapter deals with ‘Execution, Suspension, Remission and Commutation of Sentences’. By very context and the language of the provisions contained in the Chapter, they apply in cases where the guilt of an accused is determined and he is convicted of an offence punishable with sentence and/or fine. According to Section 421 of the Code, fine could be recovered either by warrant of attachment or sale of movable property belonging to the offender or by issuance of warrant to the Collector authorising him to r
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