2022 (6) TMI 771 - HC - Indian Laws

Dishonor of Cheque - Maintainability of appeal - requirement of deposit as a condition for admission of appeal, in terms of Section 148 of the Negotiable Instruments Act - HELD THAT - It is true that prior to the introduction of Section 148 of the Negotiable Instruments Act, present appeal was preferred, but it does not mean that the appellate court s hands are tied to ask the convict appellant to deposit certain percentage of the compensation amount as a condition for admitting the appeal. Convict appellant is directed to deposit 20% of the compensation amount before the trial court within two weeks from the date of the communication of this order as a condition precedent for admission of the appeal. On such deposit the appeal may be admitted and execution of the sentence awarded by the trial court may be stayed. Failing which accd will surrender before Trial Court and Ld. Trial Court will pass appropriate directions for execution of the sentence, after two weeks of the communication of the order. Application disposed off.

Summary

Issues:
1. Interpretation of Section 148 of the Negotiable Instruments Act regarding deposit as a condition for admission of appeal.

Analysis:
The revisional application was filed against the order passed by the Additional District and Sessions Judge, which rejected the respondent's petition seeking direction for the convicted party to deposit 20% of the compensation amount as a condition for admission of appeal. The appellate court rejected the petition citing that the amendment to Section 148 of the Negotiable Instruments Act, which allows such deposits, came into effect after the appeal was filed. The primary issue was whether the appellate court was justified in rejecting the petitioner's prayer for deposit as a condition for admission of the appeal.

The petitioner argued that the purpose of amending Section 148 was to prevent delay tactics by convicts in dishonored cheque cases. The petitioner relied on the Supreme Court judgment in Surinder Singh Deswal case, emphasizing that the amendment does not take away any substantive right of appeal. The court noted that the amendment allows the appellate court to direct the appellant to deposit a minimum of 20% of the compensation amount awarded by the trial court, even if the appeal was filed before the amendment.

The court referred to paragraphs 8 and 9 of the Surinder Singh Deswal case, highlighting that the amendment in Section 148 aims to expedite the resolution of cases related to dishonored cheques. The court emphasized that the discretion vested with the appellate court to order the deposit is not absolute, and the court may direct the appellant to deposit the sum to prevent delay tactics and ensure justice for the complainant. The court concluded that the impugned order rejecting the deposit request was set aside, and the convict appellant was directed to deposit 20% of the compensation amount within two weeks as a condition for admission of the appeal.

In summary, the court's decision emphasized the purposive interpretation of Section 148 of the Negotiable Instruments Act to prevent delay tactics in dishonored cheque cases and ensure justice for the complainants. The court clarified that the amendment allows the appellate court to order the deposit even in appeals filed before the enactment of the amendment, highlighting the importance of expeditious resolution in such cases.