IN THE COURT OF SH. CHHAYA TYAGI, LD MM02 (NI-ACT) DIGITAL COURTS, WEST DI STRICT, TIS HAZARI COURTS, DELHI CC NO. 1001 OF 2021 IN THE MATTER O} SHRL PAWAN CHAUDHARY «COMPLAINANT VERSUS SHRI. KAMAL SINGH «+. ACCUSED NDOH: 05.01.2022 PS: TAGORE GARDEN INDEX S.NO | PARTICULARS PAGE NO | 1 APPLICATION ON BEHALF OF THE COMPLAINT U/S 143A OF THE NEGOTIABLE INSTRUMENT ACT, 1881 AS AMENDED} 4 _ 4. UPTO DATE TO DIRECT THE ACCUSED TO| ~~ PAY INTERIM COMPENSATION TO THE COMPLAINANT. 2 ANNEXURE A | TEXT OF THE AMENDMENT INSERTING Ko & SECTION 143A IN THE NI ACT, 1881 AS PRESENTED IN LOK SABHA ALONG WITH STATEMENT OF OBJECTS AND REASONS COMPLAINANT THROUGH NEW DELHI DATED:04 .©1- 2022 ‘ASHU ARORA, MANISH ARORA & ADVOCATES LEX PRECISION D-6, 38° FLOOR SAKET, NEW DELHI-110017Bx2 0 IN THE COURT OF Ms. CHHAYA TYAGI, LD MM-02 (NI-ACT) DIGITAL COURTS ,WEST DISTRICT, TIS HAZARI COURTS, DELHI CC NO. 1001 OF 2021 IN THE MATTER OF: SHRI. PAWAN CHAUDHARY «COMPLAINANT VERSUS SHRI. KAMAL SINGH «+. ACCUSED NDOH: 05.01.2022 PS: TAGORE GARDEN APPLICATION ON BEHALF OF THE COMPLAINT U/S 143 A OF THE NEGOTIABLE INSTRUMENT ACT, 1881 AS AMENDED UPTO DATE TO DIRECT. THE ACCUSED TO PAY INTERIM COMPENSATION TO THE COMPLAINANT. MOST RESPECTFULLY SHOWETH: - _That the present complaint is pending adjudication before this Hon"ble court and is listed for further proceedings. ‘That the accused failed to pay back the friendly loan amount of Rs. 199,000/- (Rupees One lack ninety-nine thousand only) and even failed to honour the cheque that he gave to the complainant with assurance that the same will be honoured upon presentation. | That aggrieved by the dishonour of the said cheque due to reasons of “ACCOUNT CLOSED”, the complainant preferred to file the present complaint U/s 138 of the Negotiable Instrument Act, 1881, after following the due procedure given in the said act.4, That the section 143A has been inserted by act 26 of 2018, S. 2 (w.e.f 01.09.2018) in scheduled 71 of the Negotiable instrument act, 181 with a view to address the issue of undue delay in final resolution of the cheque dishonour cases to keep sanctity of Cheque transactions and as per the provisions of the said Act, if charges have been framed against the accused, the interim compensation can be ordered by the Court to the extent of 20% of the cheque amount. The text of the said amendment as presented in Lok Sabha along with the statements of objects and reasons is attached herewith as Annexure A, 5, That the accused person has taken a vague defence in the reply to legal notice dated 09.03.2021 being Ex CW1/6. The accused while not denying his signatures ‘on the Cheque and has simply denied the issuance of any cheque to the complainant. Iti also pertinent to mention that the accused has immensely failed to explain as to how the cheque in question came in the possession of the complainant and moreover, without prejudice to the rights of the complainant even if the stand taken by the accused is taken into consideration even then he has not been able to explain as to what complaint has he filed for the lost cheque or what instruction he has given to the bank for stop payment of the cheque in question. That this itself is enough to raise a question on the integrity of the accused, the defence taken by the accused is baseless and has no legs to stand on. ‘That it is evident from the baseless stand of the accused that he did not have any reasonable stand at all and that he owes the money in question to the complainant and that is why it became all the more necessary to give benefit under section 143A of Negotiable Instrument Act, 1881 to the complainant. 6. That the Hon'ble HIGH COURT OF PUNJAB AND HARYANA in CRR No.9872-2018(0&M), Date of decision:04.04.2019, while adjudicating the retrospective effect of the said legislation has observed the following:@ "Further, a perusal of the statement of object and reasons for introducing these provisions also shows that the provisions are being added with a view to address the issue of undue delay in final resolution of the cheque dishonour cases and to provide interim relief to the holder of the cheque in due course, as well as, to discourage the frivolous and unnecessary Itigation; besides strengthening the credibility of the cheques as mode of payment” 7. That the Hon'ble HIGH COURT OF CHHATTISGARH, BILASPUR CRMP No. 562 of 2021 while upholding the passing of interim compensation in favour of complainant has observed as follows: 42, From perusal of the amended provision of Section 143A of the Act, 4881, itis clear that the word 'may' used is beneficial for the complainant because the complainant has already suffered for mass deed committed by the accused by not paying the amount, therefore, itis in the interest of the complainant as well the accused if the 20% of the cheque amount is to be paid by the accused, he may be able to utilize the same for his own purpose, whereas the accused will be in safer side as the amount is ‘Slready deposited in pursuance of the order passed under Section 143A of the Act, 1881. When the final judgment passed against him, he has to pay allowances on lower side, Section 143A of the Act, 1881 has been drafted in such a manner that it secures the interest of the complainant 85 well as the accused, therefore, from perusal of aims and object of ‘amended Section 143A of the Act, 1881, it is quite clear that the word ‘may! may be treated as ‘shall’ and it is not discretionary but of directory in nature. 8, That in accordance with the purpose behind introduction of Section 143A in the Negotiable instruments act, 188, the complainant would like to request this Hon’ble court to exercise its power to direct the accused to pay up to twenty percent of the amount of cheque ie. upto Rs.39,800/- (Rupees thirty-Nine thousand Eight hundred only) to the complainant.PRAYER @ In view of the facts, circumstances and legal provisions as mentioned hereinabove, the complainant most humbly prays that this Hon’ble court may be pleased to: 1) Pass an order directing the accused person to pay an interim compensation of upto twenty percent of the amount of cheque i.e. Rs.39,800/- (Rupees Thirty- Nine thousand Eight hundred only) to the complainant. 2) Pass any other order which the Hon’ble court may deem fit in the interest of justice THROUGH NEW DELHI DATED: 04.08 2022 oe iSH ARORA ADVOCATES LEX PRECISION D-6, 38° FLOOR SAKET, NEW DELHI-110017 ASHU ARORA, MANISH ARORA & Rt4 “us Anive ane 18) ze ‘As nenaDuceo ms Lox SABHA a ‘THE NEGOTIABLE INSTRUMENTS (AMENDMENT) BILL, 2017 BILL further to amend the Negotiable Instruments Act, 1881. Bu it enacted by Parliament in the Shrty-eighth Year of the Republic of india 03 fallowss— 1 (J) This Act may be called the Negotiable Instruments (Amendment) Ac, 2017. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. 2506 188. 2. tn the Negotiable Instruments Act, 1881 (herenester refered to as the principal ‘Act, after section 143, the follosringscotion shall be inserted, namely:— 143A (J) Notwithstanding enything contained in the Code of Criminal ase 1976 Procedure, 1973, the Cour trying an offence under section 138may order the drawer 10 ofthe cheque to pay interim compensation to the complainant— (@) ina summery tial ora summons ease, where he pleads not gully 1 the accusation made in the complaint and ‘Share and feampencenet. Inceion of 18a, Powe diet fate compensation2 (@in any other case, upon framing of charge. (2) Tre interim compensation unde sub-section (2) shall not exceed twenty pet ‘cent of the amount ofthe cheque (6) The interim compensation shall be paid within shay days fom the date of the order under sub-section (J), or within such fuer period not exceeding thy ‘ays as maybe dicted bythe Court on suicient caus being shown by te drawer of the cheque. (#)Ufthe dawerofthe cheques acquitted, the Cour shall drex the complainant ‘to repay to the drawer the amount of interim compensation, with interest at the bank rate db published by the Reserve Bank of India, prevelent at the beginning of the ‘relevant nancial year, within sixty days from the date of the order, or within such further period not exceeding thy days as may be directed by the Court on suficient cause being shown by the complainant. (8) The interim compensation payable under this seotion may be recovered as if ‘tweee a fine under ssetion 421 of the Code of Criminal Procedure, 1973, (6 Tacemountof fine imposed under section 138 orthe amount of compensation awarded under section 357 ofthe Code of Criminal Procedure, 1973, shall be reduces by the amount pad or recovered a interim compensation uncer this section”. Insenonotsew 3, In the principal Act, after section 147, the following section shall be inserted, sect 1 parm — Power of “148. (D) Notwithstanding anything cootained in the Code of Criminal Procedure, ‘Appelite Coot 1973, in an appeal by the drawer against conviction under section 138, the Appellate Seton Gout on ieapelinsto epost vhicsialteu aman afety ue perc of bei or compensation awarded by the tial Court belie Provided thatthe emnount payee under this sub-sction shall bein ation to any interim compensation pad by the appellant under section 143A. (2) The amount refered to in sub-section (1) shall be deposed within sity ays fom the date ofthe order, or within such further period not exceeding thirty days ‘as ay be ditected by the Court on suficient cause being shown by the applet. (G) The Appellate Court may direct the release of the emoant deposited by the appellent tothe complainant at anytime during the pendency of the appeal: Provided tht if ths eppellantis acquitted, the Court shall direct the compllnant to repay to the appellant the amount so released, with interest atthe bank sate as published by the Reserve Bank of Inia, prevalent atthe begining ofthe relevant Financial year, within sixty days from the date of the ordet, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause ‘being shown by the complainant”. 15. 20¢197 orion, 20 20f1o, 2s 30 3‘STATEMENT OF OBIECTS AND REASONS “The Negotible Instruments Ae, 18 (he Ac) was ented to define en emend the nw relating to Promissory Notes, Bills of Exchange ard Cheques. The sald Act as been mended ffom ine to me 30 as wo provide, inter ala, speedy disposal of eases relating 0 thooffence of dutonour of cheques. Howeve, the Cental Goveiment hasbeen esivng {soveral eeesetiaton fromthe publi icloding trading cormmunity relating to podency of sheque dishonour eases. This is because of delay tactics of unseroplous drawers of Aishonoued cheques due to easy filing of appeals and obaining say on proceedings. AS result ofthis injstie is caused tothe payee of dishonoured cheque who bus to spend Conaierble time and resources in court proceetings to realise the value ofthe cheque, Such delays compromiscthe sanctity of cheque ransecions. 2 Itisproposedto amend the sod Ac witha view to adres the sue of undue delay inal esslution of cheque isonour cases 50a to providerelito ayes of dishonored cheques andto discourage fvolous and unnecesay litigation which would save tne end ‘money. The propored amendments wil senghen the eredibily of cheques and help ade ted eonmece in general by lowirg lending instatons, nlucing banks, to continue 1 tend msg ote productive aestors ofthe economy. 3. 1 therefore, proposed 0 invoduce the NeqatieleInstrumenss (Amendment) Bill, 2017 wo provide, inte lia fo he following, ramely— (i insetanew setin 143A in the sald Actto provide thatthe Cour tying an offerte under section 138 may order the drawer of the cheque to pay interim ompersaion tothe conplanart, ina summary tal or «summons case, where he plead ot gui tote eccsatin made inthe complain an ineny oer case, upon Framing of charge, The inter compensation so payable shall be such sun not cenceeding twenty per ez ofthe out ofthe cheque; aad (it inser anew section’ 148 inthe said Act oas to provide that nan appeal by the drawer agalnst convitfon under section 138 the Appellate Court may order the sppsll to depos such sum which shall beaminimum oftweny pe ent. ofthe fine or compensation avarded bythe tal cour. 4, The Bl seeks wo ackove the above objectives ‘New Deus; ARUN JAITLEY The 26th December, 2017.\\ LOK SABHA BILL further to amend the Negotable Instruments Act, 1881. (Siri Arun Jaitley, Minister of Finance and Corporate Affairs) ‘alucipeREND 32821 8(89}-28.122017