Summary
Section 143A’s power to order interim cheque-dishonour compensation was held prospective, applying only to offences committed after its introduction on 1 September 2018. It created a new pre-conviction financial obligation backed by coercive recovery machinery, rather than merely altering procedure for an existing liability. The direction in a prosecution originating in 2016 was set aside and the deposited money with accrued interest ordered returned.
Issues
- Whether section 143A could authorise interim compensation for an offence committed before its commencement.
- Whether the different treatment of appellate deposits under section 148 required retrospective application.
Provisions considered
- Section 143A, Negotiable Instruments Act, 1881Creates a new pre-conviction compensation obligation and recovery exposure; construed prospectively for offences after its introduction. (¶¶ 4, 9, 18–24)
- Section 421, Code of Criminal Procedure, 1973Its fine-recovery machinery was extended to pre-conviction interim compensation through section 143A(5), contributing to the new disability. (¶¶ 10–12, 18, 20)
Held
- A change which imposes new obligations or disabilities in relation to completed events is ordinarily prospective absent contrary legislative intention. Section 143A did more than regulate procedure by imposing liability before guilt was adjudicated. (¶¶ 15–18, 20–22)
- The provision permitting recovery of already-payable employee insurance contributions was distinguishable: there the liability pre-existed, whereas this amendment created the interim liability itself. (¶ 19–20)
- The decision applying section 148 retrospectively concerned the post-conviction appellate stage, where existing fine and compensation machinery already applied. It did not control the new pre-conviction obligation under section 143A. (¶ 23)
- Since the offence underlying the 2016 complaint preceded the amendment, neither the trial court’s 20% order nor the High Court’s reduced 15% direction could stand. (¶¶ 3–6, 24)
Result
Appeal allowed; trial and High Court interim-compensation orders set aside. Money deposited under the Supreme Court’s interim direction, together with accrued interest, to be returned to the appellant within two weeks. Underlying prosecution not quashed.