Section 143A Interim Compensation Application under the Negotiable Instruments Act, 1881

Section 143A NI Act empowers courts to grant interim compensation to the complainant up to 20% of the cheque amount during trial. It applies when the accused pleads not guilty or upon framing of charges, and aims to provide temporary relief to complainants. This note explains statutory provisions, tactical use, and provides a model application draft.

What Section 143A Does

Authority: Trial court may order interim compensation (up to 20% of cheque amount).
Stage of application:
- In summary trials when the accused pleads not guilty.
- In other cases, upon framing of charges.
Payment timeline:
- Must be paid within 60 days (extendable by 30 days on sufficient cause).
Refund: If the accused is acquitted, the complainant must refund interim compensation with statutory interest.
Prospective application: Applies only to offences committed after 1-Sep-2018 (Supreme Court ruling).
Source: PSA Legal

Tactical Use — Practitioner Notes

When to apply: Immediately after plea of not guilty or upon framing of charges.
Purpose: To mitigate complainant’s hardship and secure part of the claim during pendency of trial.
Drafting tip: Emphasize financial distress and risk of delay in realizing dues.
Defensive strategy: Accused may contest by arguing cheque issued as security or liability not legally enforceable.

Model — Application under Section 143A

IN THE COURT OF [MAGISTRATE NAME], [PLACE]

Case No. ____ of 20__

APPLICATION UNDER SECTION 143A,
NEGOTIABLE INSTRUMENTS ACT, 1881

Respectfully submitted that:

1. The accused has pleaded not guilty / charges have been framed on [date].
2. The complainant has suffered financial loss due to dishonour of cheque and is in urgent need of interim relief.
3. Under Section 143A of the Negotiable Instruments Act, 1881, this Hon’ble Court has power to direct the accused to pay interim compensation not exceeding 20% of the cheque amount.

PRAYER
(a) Direct the accused to deposit interim compensation of Rs. ______ (being ____% of cheque amount).
(b) Pass such other order as this Hon’ble Court may deem fit.

[Place, Date]
[Signature]
[Advocate for Complainant]

Evidence to Support Application

Proof of urgency: Documents showing complainant’s financial hardship.
Bank statements: Demonstrating loss or liquidity issues.
Details of unrecovered amounts: Pending dues, partial payments (if any).
Citations: Reference to 2018 amendment and judicial guidance for Section 143A applications.