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2020 (5) TMI 561 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - offence punishable under Section 138 of the Negotiable Instruments Act, 1881 - applicability of Section 143A of the Act - HELD THAT:- Section 143A was inserted in the Act with effect from 01.09.2018 by Amendment Act 20 of 2018. Section 143A(1) of the Act provides that, 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. Section 143A(2) of the Act states that the interim compensation under sub-section (1) shall not exceed twenty per cent of the amount of the cheque. In the instant case, the offence under Section 138 of the Act was allegedly committed by the petitioner and the complaint against him was filed by the first respondent much before the date 01.09.2018. Therefore, the learned Magistrate could not have invoked the provisions under Section 143A of the Act in the instant case and directed the petitioner to deposit 20% of the amount of the cheques. The impugned order cannot be sustained in law. Petition allowed - decided in favor of petitioner.
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