Amendment to Negotiable Instrument Act, 1881

By August 7, 2018 December 20th, 2019 No Comments

On July 23, 2018, the lower house
of Parliament passed Negotiable Instruments (Amendment) Bill. By way of the
following amendment, two new provisions have been introduced;
Section 143A (Power to direct interim compensation)
which gives power to the court to order payment of interim compensation by the
drawer of the cheque to the complainant. The interim compensation ordered shall
not exceed 20% of the cheque amount and can be paid where the accused pleads
not guilty in a summary trial or a summons case. As per this provision, the
interim compensation shall be paid within 60 days from the date of the order or
within period not exceeding 30 days after sufficient cause shown by the drawer
of the cheque. The interim compensation may be recovered as if, it were a fine
under Section 421 of the Code of Criminal Procedure, 1973. This provision also
states that the interim compensation has to be returned by the complainant
along with interest at the bank rate as prescribed by the Reserve Bank of
India, if the accused is found to be acquitted.
Section 148 (Power
of Appellate Court to order payment pending appeal against conviction)

which empowers the Appellate Court to direct the appellant to deposit an amount
which shall be minimum 20% of the fine or the compensation awarded by the Trial
Court. The Court may also direct the amount be released deposited by the
Appellant to the Complainant at any time during the pendency of the trial.
The abovementioned bill has been passed by Lok
Sabha and is now put up before the Upper House.

Leave a Reply