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2022 (11) TMI 487 - HC - Indian LawsDishonor of Cheque - Direction to deposit 30% of composition amount in lieu of suspension of sentence imposed by learned trial Court - section 148 of NI Act - HELD THAT - On perusal of material available on record vis- -vis reasoning assigned in the impugned order, this court finds that appellate court, while suspending substantive sentence imposed by learned trial Court was well within its jurisdiction to direct the party seeking suspension of substantive sentence, to deposit minimum of 20% of compensation/fine amount awarded by learned trial Court. Careful perusal of S. 148 of Act, leaves no room for doubt that at the time of considering prayer for suspension of sentence imposed by learned trial Court, appellate court is not estopped from imposing condition of deposit of minimum of 20% of compensation amount. Reliance placed in the judgment of Hon'ble Apex Court in SURINDER SINGH DESWAL @ COL. S.S. DESWAL AND OTHERS VERSUS VIRENDER GANDHI 2019 (5) TMI 1626 - SUPREME COURT , wherein it has been held that even if original complaint is filed prior to amendment of S. 148 of the Act, appellate court can exercise power under S. 148 to direct accused to deposit minimum 20% of compensation. Though this court finds no merit in the present petition, however, having taken note of the fact that the petitioner has a huge liability to pay the compensation, this court deems it fit to modify the order dated 1.10.2022 passed by learned Additional Sessions Judge, Hamirpur, Himachal Pradesh to the extent that the petitioner shall deposit 20% of the compensation amount within a period of two months from the date of order. Petition disposed off.
Issues:
Challenge to order directing deposit of 30% of composition amount in lieu of suspension of sentence imposed by trial Court under S. 482 CrPC. Analysis: 1. The petition challenges the order directing the accused to deposit 30% of the composition amount in lieu of suspension of sentence imposed by the trial Court. 2. The Additional Advocate General cited S. 148 of the Negotiable Instruments Act, amended in 2018, allowing the appellate court to direct the accused to deposit a minimum of 20% of the compensation awarded by the trial Court for suspension of sentence. 3. The High Court found that the appellate court has the jurisdiction to impose the condition of depositing a minimum of 20% of the compensation amount while suspending the sentence imposed by the trial Court, as per S. 148 of the Act. 4. The petitioner argued that since the complaint was filed before the amendment in S. 148, the condition should not apply. However, relying on the Supreme Court judgment in Surinder Singh Deswal v. Virender Gandhi, the High Court held that the amendment can be applied retrospectively. 5. The High Court emphasized that the purpose of the amendment was to prevent delay tactics in cases of dishonored cheques, and the discretion of the appellate court to order the deposit is in line with the objectives of the Act. 6. The High Court rejected the argument that the use of "may" in the amended S. 148 gives discretionary power to the appellate court, stating that the word "may" is generally construed as "shall" in this context, and the condition serves the purpose of speedy disposal of cases related to dishonored cheques. 7. Consequently, the High Court modified the order to require the petitioner to deposit 20% of the compensation amount within two months, considering the substantial liability of the petitioner. Conclusion: The High Court dismissed the petition challenging the order to deposit 30% of the composition amount, citing the applicability of the amended S. 148 of the Negotiable Instruments Act and the Supreme Court's judgment allowing retrospective application. The modification required the petitioner to deposit 20% of the compensation amount within two months, aligning with the purpose of the Act to expedite cases related to dishonored cheques.
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