VidhiSangh

Supreme Court of India · 30/07/2019

G. .J. RAJA versus TEJRAJ SURANA

[2019] 10 S.C.R. 910 · 2019 INSC 838

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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

  1. Whether section 143A could authorise interim compensation for an offence committed before its commencement.
  2. Whether the different treatment of appellate deposits under section 148 required retrospective application.

Provisions considered

Held

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.

Judgment PDF: Supreme Court of India, [2019] 10 S.C.R. 910.