Bombay High Court: Cheque Dishonour Cases, Interim Compensation To Have Retrospective Effect

INTRODUCTION

The Bombay High Court in its judgement dated 14th March, 2019 in the matters of Ajay Vinodchandra Shah v. The State of Maharashtra & Anr. [Criminal Writ Petition No. 258 of 2019, Criminal Writ Petition No. 259 of 2019 and Criminal Writ Petition No.26 of 2019] whilst discussing the amendments to Section 143A and Section 148 of the Negotiable Instruments Act, 1881("NI Act") held that the amendments to the NI Act which came into effect from 1st September, 2018 are applicable to the cases filed prior to 1st September, 2018 but which are pending in the trial as well as the appellate court. In these cases, if the plea is recorded or the charge is not framed, then the trial Court can invoke its power under section 143A after 1st September, 2018 and can impose interim compensation which shall not exceed 20% of the amount of cheque. Similarly, in case in appeals, the Appellate Court can pass interim orders under section 148 of the NI Act.