M. RAGHU Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition, the petitioner has sought for the relief of striking down Sec. 143A of the Negotiable Instruments (Amendment) Act, 2018 as ultra vires the Constitution of India.

(2.) Facts giving rise to filing of this appeal briefly stated are that the petitioner had issued a cheque in favour of respondent No.2. However, on presentation of the cheque, the same was dishonored. Thereupon, the respondent No.2 issued a notice dtd. 16/1/2019 to the petitioner. The petitioner submitted a reply to the aforesaid notice on 30/1/2019. Thereafter, the respondent No.2 filed a complaint under Sec. 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the Act' for short). During the pendency of the proceedings, the respondent No.2 filed an application under Sec. 143A(2) of the Act, in which a prayer was sought to deposit 20% of the amount. The petitioner filed objections to the aforesaid application. The trial court by an order dtd. 30/10/2019 allowed the application preferred by respondent No.2 and directed the petitioner to deposit 10% of the amount in question. In the aforesaid factual background, this petition has been filed.

(3.) Learned counsel for the petitioner submitted that Sec. 143A of the Act is violative of Articles 14 & 19 of the Constitution of India. It is also submitted that the holder of the cheque is required to deposit the amount without trial and in case of default of payment of the amount as ordered by the Court under Sec. 143A of the Act, the holder of the cheque may be sent to jail and therefore, Sec. 143A deserves to be struck down. On the other hand, learned Central Government Counsel has submitted that Sec. 143A(2) does not suffer from any infirmity.