The trial courts must examine whether an accused person is attempting to delay proceedings in cheque dishonour cases when considering the plea of the complainant for grant of interim compensation as per the new provision added in the Negotiable Instruments Act, 1881, with effect from August 2018.
The bedrock of the NI (Amendment) Act, 2018, was to stall unscrupulous drawers of cheques dragging proceedings with frivolous applications, absenting themselves, seeking continuous adjournments causing delay and grave prejudice to the case of the complainants as clearly stated in the ‘statements of objects and reasons’ of the 2018 Act, the High Court pointed out.
Such being the background for introducing provision for payment of interim compensation and legal consequences for not paying such interim compensation, the trial courts should grant interim compensation, which would vary from 1% to 20%, only after analysing the conduct of the accused and recording proper reasons, the High Court made it clear.
