The Parliament of India has amended Negotiable Instruments Act and passed the Negotiable Instruments (Amendment) Act, 2018 on 2nd August, 2018.
Through the said amendment section 143A has been inserted to the original act after section 143 to give interim compensation to the complainant. As per Section 143A(2) the interim compensation may be upto 20% of the cheque amount. As per the Act the interim compensation shall be paid within 60 days of order of the court or further period which not exceeding 30 days.
![Negotiable instruments (amendment) Act 2018](="images/dishonoured-cheque.jpg")
Provisions under the Negotiable Instruments (Amendment) Act, 2018
regarding allowing interim relief to the complainant is:
"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."
The Negotiable Instruments (Amendment) Act, 2018 on 2nd August, 2018 has also inserted section 148 to the original act after section 147 to include power of Appellate court to order payment pending appeal against conviction. The amount prescribed is 20% of the amount or fine awarded by the trial court. The amount payable under section 148 shall be in addition to the amount of interim relief if any allowed under section 143A. Provisions under Section 148 of the Negotiable Instruments (Amendment) Act, 2018 is as under:
"148. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, in an appeal by the drawer against conviction under section 138, the 2 of 1974. 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."
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