2020 (3) TMI 992 - HC - Indian Laws

Compliance with the pre-deposit for maintenance of appeal - imposition of the condition on the petitioner to deposit 20% of the compensation amount within 60 days in view of Section 148(1) of the Negotiable Instruments Act, 1881 - HELD THAT - In the present case, learned Additional Sessions Judge, Yamuna Nagar at Jagadhri had granted 60 days time to the petitioner for deposit of 20% of the compensation amount which will expire on 19.03.2020. The petitioner is stated to be unable to deposit the amount by that date due to his difficult financial conditions. Under Section 148 of the N.I. Act the period for deposit of the amount can be extended by another period of 30 days so as not to exceed 90 days. In the facts and circumstances of the case, ends of justice require that the petitioner be allowed 30 days time to deposit 20% of the compensation amount as no prejudice will be caused to the respondent if the petitioner is given 30 days time to comply with order dated 20.01.2020 to deposit 20% of the compensation amount. The petition is hereby disposed of with the direction to the learned Additional Sessions Judge, Yamuna Nagar at Jagadhri to extend the time for deposit of 20% of the compensation amount awarded by learned Judicial Magistrate Ist Class, Bilaspur by further period of 30 days.

Summary

Issues:
- Quashing of order dated 20.01.2020 passed by the Additional Sessions Judge
- Interpretation of Section 148 of the Negotiable Instruments Act, 1881
- Applicability of Section 148 in appeals filed before and after the amendment
- Extension of time for depositing compensation amount

Analysis:
1. The petitioner filed a petition under Section 482 of the Code of Criminal Procedure seeking to quash the order dated 20.01.2020 by the Additional Sessions Judge, directing the petitioner to deposit 20% of the compensation amount within 60 days for entertaining the appeal against a conviction under Section 138 of the Negotiable Instruments Act, 1881. The petitioner argued that the amendment incorporating Section 148 was not applicable at the time of filing the appeal.

2. The court noted that the amendment to Section 148 of the Negotiable Instruments Act was made effective from 01.09.2018. Referring to a previous Supreme Court judgment, it was held that Section 148 should be applied retrospectively to appeals filed against convictions under Section 138, even if the complaints were lodged before the amendment. Therefore, the order directing the deposit did not suffer from any illegality.

3. The petitioner, citing financial difficulties, requested an extension of time for depositing the amount. The court acknowledged the petitioner's situation and extended the period for deposit by 30 days, not exceeding a total of 90 days from the date of the original order. This decision aimed to ensure justice without causing prejudice to the respondent.

4. The court emphasized that the purposive interpretation of Section 148 was essential to prevent delay tactics in cases of dishonored cheques, as highlighted by the Parliament's amendment to the Act. By allowing the extension, the court balanced the interests of both parties while upholding the legislative intent behind the amendment.

5. In conclusion, the court disposed of the petition by directing the Additional Sessions Judge to grant an additional 30 days for the petitioner to deposit 20% of the compensation amount, setting the new deadline at 19.04.2020. This decision aligned with the principles of fairness and practicality in the context of the petitioner's financial constraints.