Section 143A: interim compensation at trial
Added in 2018, Section 143A allows the trial court to direct the accused to pay interim compensation of up to twenty percent of the cheque amount, where the accused pleads not guilty or, in a summons case, after the charge or the substance of accusation is explained. The amount is to be paid within sixty days, extendable by up to thirty days for sufficient cause.
Discretionary, and not retrospective
The power under Section 143A is discretionary; the court considers whether the complainant has a prima facie case and the nature of the defence. In G.J. Raja v. Tejraj Surana (2019), the Supreme Court held that the provision is prospective and does not apply to complaints relating to offences committed before it came into force.
If the accused is acquitted
If the accused is acquitted, the court directs the complainant to repay the interim compensation, with interest at the bank rate as published by the Reserve Bank of India, within the time the Act provides.
Section 148: deposit in appeal
When a convicted accused appeals, the appellate court may order a deposit of at least twenty percent of the fine or compensation awarded by the trial court, in addition to any interim compensation already paid. In Surinder Singh Deswal v. Virender Gandhi (2019), the Supreme Court held that such a deposit should ordinarily be directed. In Jamboo Bhandari v. M.P. State Industrial Development Corporation (2023), it clarified that the appellate court may make an exception in a case where the requirement would be unjust, recording its reasons.
Recovery
Interim compensation and deposits are recoverable as if they were a fine, and can be enforced against the accused's property. Amounts paid are adjusted against the fine or compensation finally awarded.
Frequently asked questions
Can the interim compensation order be challenged?
Yes. An order under Section 143A may be challenged before the Sessions Court in revision or before the High Court under its inherent or supervisory jurisdiction, usually on the ground that the discretion was not exercised properly.
About the author
Advocate Vivekanand
Founder & Principal Advocate, Vivekanand Law Firm · MA (English), MBA, LL.B., Author. Full profile
This article is general legal information, not legal advice. It does not create an advocate–client relationship. Legal provisions referred to should be verified for your specific situation and the date of the events concerned.