Discuss the provisions under Section 143A(4) with regards to repayment of the amount of interim compensation where the drawer of the cheque is acquitted.
CS Executive · Jurisprudence, Interpretation and General Laws · PYQS · December 2024
Discuss the provisions under Section 143A(4) with regards to repayment of the amount of interim compensation where the drawer of the cheque is acquitted.
Answer & Explanation:
Section 143A of the Negotiable Instruments Act, 1881, deals with the power to direct interim compensation. Specifically, Section 143A(4) addresses the scenario where the drawer of the cheque is acquitted after having paid interim compensation. Provisions under Section 143A(4): If the drawer of the cheque is acquitted of the offence under Section 138, the Court shall direct the complainant to repay to the drawer the amount of interim compensation, with interest. Interest Rate: The interest shall be at the bank rate as published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year. Repayment Period: The repayment must be made within sixty days from the date of the order of acquittal. Extension of Period: The Court may, for sufficient cause shown by the complainant, extend this period by not exceeding thirty days. This provision ensures that if the drawer is ultimately found not guilty, they are compensated for the interim amount paid, along with interest, to prevent undue hardship.
Topics: Negotiable Instruments Act, 1881
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