Question

Under Section 143A, inserted in 2018, a court trying a Section 138 offence may direct the drawer to pay interim compensation up to what percentage of the cheque amount?

Q: Answer-Under Section 143A, inserted in 2018, a court trying a Section 138 offence may direct the drawer to...

Section 143A of the Negotiable Instruments Act, inserted by the 2018 amendment, empowers the court trying an offence under Section 138 to direct the drawer to pay interim compensation to the complainant, not exceeding twenty percent of the cheque amount. This may be ordered in a summary trial or summons case where the drawer pleads not guilty. The provision aims to provide some relief to the payee during the pendency of the case and discourage frivolous defences.