2023 (11) TMI 1338 - SCH - Indian Laws

Purposive interpretation of Section 148 of the Negotiable Instruments Act - HELD THAT - The justice would be subserved by permitting the appellant to advance his arguments on the application seeking waiver of pre-deposit which was dismissed by the Appellate Court and sustained by the High Court in JAMBOO BHANDARI VERSUS M.P. STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD. AND ORS. 2023 (9) TMI 560 - SUPREME COURT . The impugned order passed by the High Court sustaining the order of the Sessions Court is/are set aside. The Sessions Court to re-consider the application filed by the appellant herein seeking waiver of the pre-deposit. Appeal allowed.

Summary

The Supreme Court of India, presided by Hon'ble Mrs. Justice B.V. Nagarathna and Hon'ble Mr. Justice Ujjal Bhuyan, granted leave and heard submissions from both parties. The appellant's counsel referenced a recent Supreme Court judgment in *Jamboo Bhandari vs. M.P. State Industrial Development Corporation Ltd. and Ors.*, emphasizing a "purposive interpretation" of Section 148 of the Negotiable Instruments Act (N.I. Act). The judgment highlighted that while appellate courts typically impose a deposit condition under Section 148, exceptions can be made if such a condition would be unjust or infringe on the appellant's right of appeal.

The Court found merit in allowing the appellant to argue for a waiver of the pre-deposit, which had been dismissed by the Appellate Court and upheld by the High Court. Consequently, the Supreme Court set aside the High Court's order and directed the Sessions Court to reconsider the appellant's application for a waiver of the pre-deposit, in line with the observations from the *Jamboo Bhandari* judgment and legal standards. The appeal was allowed, and any pending applications were disposed of accordingly.