Even if the trial of the cheque bounce under Section 138 of the Negotiable Instruments Act is converted into a warrant-case, interim compensation of 20% may still be directed by the Magistrate to be paid to the complainant by the accused; however, the stage of payment of such interim compensation may be slightly different.
Under the provisions of Section 143-A of the Act, in a summary trial or a summons case, the order for interim compensation in cheque bounce can be made when the accused pleads not guilty to the accusation made in the complaint. But, in any other case (i.e., in warrant-case, if it is converted into it), the interim compensation may be ordered upon framing of charge.
So, only the stage of ordering the interim compensation may change slightly, but the order for interim compensation can still be made even if a cheque bounce case is tried as a warrant-case.
Section 143-A of the N.I. Act is reproduced as under:
“143-A. Power to direct interim compensation.—(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), 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 (2 of 1974).
(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 (2 of 1974), shall be reduced by the amount paid or recovered as interim compensation under this section.”
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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