Negotiable Instruments Act. Section 143A is applicable only to offences committed after its insertion. Section is not retrospective. Karnataka High Court.

Sarojamma vs R.Venkataramanaswamy. Criminal Petition 4338/2020 decided on 7 December 2020.

Judgment Link: http://judgmenthck.kar.nic.in/judgmentsdsp/bitstream/123456789/351592/1/CRLP4338-20-07-12-2020.pdf

Relevant Paragraphs: 6. The only question which arises for consideration of this Court in this petition is: “Whether the insertion of Section 143A of the N.I. Act is having a  prospective  effect or can also be given retrospective effect?”

7. It is well settled proposition of law that always the substantive law which affects the rights of the parties will have prospective effect unless it has been given a retrospective effect expressly in the statute  itself.  …..in the case of  G.J.Raja Vs. Tejraj Surana 2019  SCC OnLine SC 989, the issue  came  up before  the Court directly with regard to interpretation of Section 143A of the N.I. Act and the Hon’ble Apex Court has held that Section 143A of the N.I. Act is having prospective effect in nature and confined to the cases where the offences were committed after the introduction of Section 143A of the N.I. Act. At paragraph-23 of the said decision, it has been observed by the Hon’ble Apex Court as under:-

“23. In our view, the applicability of Section 143A of the Act must, therefore, be held to be prospective in nature and confined to cases where offences were committed after the introduction of Section 143A, in order to force an accused to pay such interim  compensation.”

When the Hon’ble Apex Court has  interpreted and laid down the ratio holding that Section 143A of the N.I. Act is to be prospective in operation and is made applicable only in the cases where the offence under Section 138 of the Act was committed after insertion of Section 143A in the statute.

Compiled by S. Basavaraj, Advocate, Daksha Legal.