Whether Section 143-A Introduced by the Amendment Act No. 20 of 2018 in the Negotiable Instruments Act, 1881 Has Retrospective Application or Not?

Abstract

The party who commits default in payment can be sued by a payee in the civil court by filing suit for recovery of money. However, the special provision of Section 138 under the Negotiable Instruments Act, 1881 (hereinafter referred to as the NIA) was inserted with effect from 01.04.1989 vide the Banking Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988.

The object of the NIA is to enhance the acceptability of the cheques in settlement of liabilities by making the drawer liable for penalties in case of bouncing of cheques due to insufficiency of funds in the accounts. That by virtue of the Amendment Act No. 20 of 2018 in the NIA, the legislature introduced.

Section 143-A and Section 148 providing for “Power to direct interim compensation” and “Power of Appellate Court to order payment pending appeal against conviction” respectively.