Cheque Bounce Cases, Now No Application Of Section 143A.


Cheque bounce cases: No retrospective application of Section 143A, says Supreme Court.

Settling the law related to interim compensation in the cheque bounce cases, the Supreme Court on Tuesday clarified that Section 143A of the Negotiable Instruments (NI) Act will have no retrospective application.


This means that now this provision of interim compensation during the pendency of the case will only be applicable in the cases filed after 2018 amendment. The clarification had become necessary as there were conflicting views by different high courts.

Section 143A, which was inserted in the Act in September 2018 to reduce the undue delay in the cheque bounce cases, empowers the trial court to order the drawer of the cheque to pay interim compensation to the complainant upon framing of charges against the accused.

The compensation amount shall not exceed 20% of the amount of the cheque.