G. .J. RAJA versus TEJRAJ SURANA

G. .J. RAJA versus TEJRAJ SURANA

Section 143A creates a new pre-conviction liability and enables coercive recovery as if the interim compensation were a fine under Section 421 CrPC; because it imposes a new disability/obligation it is prospective in operation and applies only to offences committed after its insertion w.e.f. 01.09.2018; consequently the interim compensation orders in this case (complaint lodged 2016) are set aside and deposited money to be returned with interest.

Parties
Appellant: G. J. Raja; Respondent: Tejraj Surana
Jurisdiction
India
Judgment Date
30 July 2019
Procedural Posture
Criminal Appeal / Appeal Challenging High Court Order
Outcome
Appeal allowed; orders awarding interim compensation set aside
Legal Topics
Section 143 a, Interim Compensation, Retrospective V Prospective Application of Legislation, Recovery as Fine Under Section 421 Cr PC, Section 138 NI Act
Negotiable Instruments Act, 1881 Code of Criminal Procedure, 1973 Negotiable Instruments (amendment) Act, 2018 Interpretation of Statutes Section 143 a Interim Compensation Retrospective V Prospective Application of Legislation Recovery as Fine Under Section 421 Cr PC +1 more

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Parties

G. J. Raja

Appellant

Tejraj Surana

Respondent

Procedural Posture

Criminal Appeal / Appeal Challenging High Court Order

Legal Issues

  1. 1 Whether Section 143A of the Negotiable Instruments Act, inserted w.e.f. 01.09.2018, applies retrospectively to offences committed before its insertion
  2. 2 Whether interim compensation under Section 143A can be recovered as if it were a fine under Section 421 CrPC and thus expose accused to coercive recovery mechanisms prior to conviction
  3. 3 Whether orders awarding interim compensation under Section 143A in a case where the offence was committed prior to 01.09.2018 are valid

Ratio Decidendi

Section 143A creates a new pre-conviction liability and enables coercive recovery as if the interim compensation were a fine under Section 421 CrPC; because it imposes a new disability/obligation it is prospective in operation and applies only to offences committed after its insertion w.e.f. 01.09.2018; consequently the interim compensation orders in this case (complaint lodged 2016) are set aside and deposited money to be returned with interest.

Court Disposition

Appeal allowed; orders awarding interim compensation set aside

Orders

  • Orders passed by the Trial Court and the High Court awarding interim compensation under Section 143A are set aside
  • Money deposited by the Appellant pursuant to the interim direction of this Court shall be returned to the Appellant along with interest accrued thereon within two weeks from the date of the order