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Bombay High Court

B.V. Satya Sai Prasad, Promoter ... vs The State Of Maharashtra And Anr on 7 October, 2022

Author: Amit Borkar

Bench: Amit Borkar

                                                                           25-crwp377-2019.doc


                      AGK
                            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                 CRIMINAL APPELLATE JURISDICTION

                                      WRIT PETITION NO.377 OF 2019


                      B. V. Satya Sai Prasad, Promoter
                      Director of M/s.Sai Rayalseema
                      Paper Mills Ltd.                            ...Petitioner
                             V/s.
                      The State of Maharashtra & Anr.             ...Respondents



                      Mr. Sushant S. Prabhune for the petitioner.
                      Mr. A. R. Patil, APP for the State.
                      Mr. Rajesh Kanojia with Ms. Nitika Singh i/by RES
                      Juris for respondent no.2.



                                                  CORAM : AMIT BORKAR, J.
                                                  DATED         : OCTOBER 7, 2022
                      P.C.:

1. The challenge in this petition is to the order passed under section 143-A of the Negotiable Instruments Act, 1881 directing accused to pay interim compensation of 20% of the cheque within sixty (60) days from the date of order. As per the averments in the complaint, cheque in question was issued on 30 th September 2016 and was dishonoured on 29th December 2016. Demand notice dated 13th January 2017 was received on 31 st January 2017 and as per averments in the complaint the offense was complete on 15 th Digitally signed by ATUL ATUL GANESH GANESH KULKARNI KULKARNI Date:

February 2017.
2022.10.10 11:30:18 +0530 1 25-crwp377-2019.doc

2. The amendment to the Negotiable Instruments Act inserting section 143-A came into effect from 1st September 2018 and, therefore, on the date of commission of offense, the provisions of section 143(2) was not in force.

3. The point involved in this petition is no res integra in view of the authoritative pronouncement of the Apex Court in G.J. Raja v. Tejraj Surana reported in (2019) 19 SCC 469. The Apex Court has held that section 143-A of the Negotiable Instruments Act is prospective in operation and the provisions of said section can be applied or invoked only in cases where the offence under section 138 of the Negotiable Instruments Act was committed after the introduction of section 143-A in the statute book.

4. In that view of the matter, the petitioner has made out a case for grant of relief. Hence, following order :

The impugned order dated 27th November 2018 passed by the Metropolitan Magistrate, 7th Court, Dadar, Mumbai directing deposit of 20% of the amount of cheque is quashed and set aside.

5. The writ petition is disposed of in above terms. No costs.

(AMIT BORKAR, J.) 2