Lok Sabha passes Negotiable Instrument (Amendment) Bill, 2018 a bill further to amend the Negotiable Instruments Act, 1881 by which it has proposed to  insert section 143A -Power to direct interim compensation and Section 148-Power of Appellate Court to order payment pending appeal against conviction.

Bill No. 281-C of 2017

THE NEGOTIABLE INSTRUMENTS (AMENDMENT) BILL, 2018
A
BILL
further to amend the Negotiable Instruments Act, 1881.

BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:—

1. Short title and commencement

(1) This Act may be called the Negotiable Instruments (Amendment) Act, 2018.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2. Insertion of new section 143A

In the Negotiable Instruments Act, 1881 (hereinafter referred to as the principal Act), after section 143, the following section shall be inserted, namely:—

Power to direct interim compensation.

‘‘143A. (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.

(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, shall be reduced by the amount paid or recovered as interim compensation under this section.’’.

3. Insertion of new section 148.

In the principal Act, after section 147, the following section shall be inserted, namely:—

Power of Appellate Court to order payment pending appeal against conviction.

‘‘148. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, in an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of twenty per cent. of the fine or compensation awarded by the trial Court:

Provided that the amount payable under this sub-section shall be in addition to any interim compensation paid by the appellant under section 143A.

(2) The amount referred to in sub-section (1) shall be deposited 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 appellant.

(3) The Appellate Court may direct the release of the amount deposited by the appellant to the complainant at any time during the pendency of the appeal:

Provided that if the appellant is acquitted, the Court shall direct the complainant to repay to the appellant the amount so released, 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.’’.

Download Full Text of Negotiable Instrument (Amendment) Bill, 2018

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14 Comments

  1. Adv D P. Jindal says:

    These amendment applicable date is 01/09/2018 as per notification 16/08/2018.

    To get the gazette notification, visit “toindianlaw.com”

  2. SANDIP KUMAR SANTRA says:

    Is section 143 A, applicable to pending cases in trial courts u/s 138 N. I. Act ? Is there any case law to support its application to pending cases when there is no indication in the inserted section whether it is prospective or retrospective

  3. Akhilesh kumar singh says:

    Dear Sir
    I have filed a case four years back
    Guilty has yet not appeared in court.Court has issued 82 and 83 but no result yet.please tell me whether amamendment will be applicable (2018) in my camy case also.

    1. V.S.Dhar says:

      Is section 143 A, applicable to pending cases in trial courts u/s 138 N. I. Act ? Is there any case law to support its application to pending cases when there is no indication in the inserted section whether it is prospective or retrospective?

      1. V.S.Dhar says:

        Is section 143 A, applicable to pending cases in trial courts u/s 138 N. I. Act ? Is there any case law to support its application to pending cases when there is no indication in the inserted section whether it is prospective or retrospective

  4. Advocate Dksinha says:

    Can you clarify as to how it is covered under summon case
    Secondly under sub section b it says upon framing of charges
    In Pvt complaint there is no framing of charges
    Expert comment needed for my guidance
    Regards
    Adv DK SINHA

  5. SURINDER KUMAR BAGGA says:

    It is great news for bounced cheque holders but from which date it will remain effect as Gazette of india by law ministery has been announced and published.

    Further will Metropolitican magistrate, would suo moto intiate action u/s 143A asking accused to pay compensation @ 20% within 30 days or 60 days or complaintants will have to submit application for compensation u/s 143A before Metroolitan magistrate and whether copy of app. has to be given to accused person or only before metroplitan magistrate. I am afraid courts would be piled up with such applications u/s143A or

  6. Nitin Bhausaheb Jadhav says:

    From plain reading of the sec. it appears it may be applicable to old cases also in which accused has not pleaded guilty.

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