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2024 (5) TMI 736 - HC - Indian LawsDishonour of Cheque - requirement to deposit a minimum of 20% of the fine or compensation - speedy disposal of cases relating to dishonor of cheques so as to see that due to delay tactics by unscrupulous drawers of dishonored cheques due to easy filing of appeals and obtaining stay in proceedings - Section 148 of The Negotiable Instruments Act 1881 - HELD THAT - It would be relevant to discuss Section 148 of The Negotiable Instruments Act 1881, which has been inserted in the Act through Negotiable Instruments (Amendment) Act, 2018 (Act No 20 of 2018) to provide, inter alia, speedy disposal of cases relating to dishonor of cheques so as to see that due to delay tactics by unscrupulous drawers of dishonored cheques due to easy filing of appeals and obtaining stay in proceedings, injustice caused to payee of dishonored cheque who has spent considerable time and resource in court proceedings to realise value of cheque, thus, having observed that such delay has compromised sanctity of cheque transaction, Parliament thought it fit to amend Section 148 Purposive interpretation of Section 148 would be in furtherance of Objects and Reasons of amendment of Section 148 and also Section 138 of the Negotiable Instruments Act, 1881. In the instant case, the Appellate court although vide order dated 27.03.2024 had admitted the appeal and also allowed the Bail Application moved by the applicant/petitioner but by the same order despite admitting the appeal preferred by the applicant/appellant had erroneously ordered to pay 50% of the fine as ordered vide impugned order dated 01.03.2024 within a period of 30 days from the date of the order and also provided that in case of non-deposition of fine by the appellant/applicant, the order of granting bail to the appellant/applicant shall stand automatically cancelled, thus, the appellate court while passing the impugned order dated 27.03.2024 by which it has only stayed 50% of the fine as directed vide order dated 01.03.2024 passed by the trial court has failed to consider the Statutory Provisions as enshrined under Section 148(1) and 148(2) of the Negotiable Instrument Act, 1881 which resulted in miscarriage of justice. The issue involved in this case has broadly been dealt by Hon'ble the Supreme Court of India in the case of SURINDER SINGH DESWAL @ COL. S.S. DESWAL AND OTHERS VERSUS VIRENDER GANDHI 2019 (5) TMI 1626 - SUPREME COURT wherein the Apex Court has been pleased to observe that The Negotiable Instruments Act has been amended from time to time so as to provide, inter alia, speedy disposal of cases relating to the offence of the dishonour of cheques. So as to see that due to delay tactics by the unscrupulous drawers of the dishonoured cheques due to easy filing of the appeals and obtaining stay in the proceedings, an injustice was caused to the payee of a dishonoured cheque who has to spend considerable time and resources in the court proceedings to realise the value of the cheque and having observed that such delay has compromised the sanctity of the cheque transactions, Parliament has thought it fit to amend Section 148 of the NI Act. Therefore, such a purposive interpretation would be in furtherance of the Objects and Reasons of the amendment in Section 148 of the NI Act and also Section 138 of the NI Act. This Court finds that the Appellate Court has erred in law while ordering to pay 50% of the fine imposed by the learned trial court while convicting him under Section 138 of the Negotiable Instruments Act, 1881 till the disposal of the appeal preferred by the appellant/applicant before the Appellate Court. Thus, this Court deems it appropriate to dispose of this application under Section 482 Cr.P.C. with modification of the impugned order dated 27.03.2024 to the extent that the applicant is directed to deposit 20% of the fine imposed upon him by the trial court within sixty days' from the date of this judgment and the bail already granted by the Appellate Court shall continue till the disposal of the appeal pending before the Appellate Court. The present application under Section 482 Cr.P.C. is finally disposed of.
Issues involved:
1. Requirement to deposit 50% of the fine by the Appellate Court. 2. Interpretation of Section 148 of the Negotiable Instruments Act, 1881. Summary: 1. Requirement to deposit 50% of the fine by the Appellate Court: The applicant filed an application u/s 482 Cr.P.C. requesting the trial court to accept only 20% of the amount in Criminal Appeal No.83 of 2024 related to Complaint Case No.2213 of 2017 u/s 138 N.I. Act. The applicant was convicted by the trial court and ordered to pay Rs.6,75,000/- along with three months of simple imprisonment. The applicant appealed u/s 374 Cr.P.C., and the Appellate Court admitted the appeal and granted bail on the condition of depositing 50% of the imposed fine within 30 days. The applicant argued that this order was punitive and contrary to the statutory provisions u/s 148(1) & 148(2) of the Negotiable Instruments Act, 1881, which mandates a minimum deposit of 20% of the fine or compensation. 2. Interpretation of Section 148 of the Negotiable Instruments Act, 1881: The court discussed Section 148 of the Negotiable Instruments Act, 1881, inserted through the Negotiable Instruments (Amendment) Act, 2018, which allows the Appellate Court to order the appellant to deposit a minimum of 20% of the fine or compensation pending appeal. The court referenced the Supreme Court's interpretation in Surinder Singh Deswal Alias Colonel S.S. Deswal and Others vs. Virender Gandhi, emphasizing that the term "may" in Section 148 should generally be construed as "shall" to prevent misuse by unscrupulous drawers of dishonored cheques. Judgment: The court found that the Appellate Court erred in ordering the applicant to deposit 50% of the fine. The impugned order dated 27.03.2024 was modified to direct the applicant to deposit 20% of the fine within sixty days from the date of this judgment. The bail granted by the Appellate Court shall continue until the disposal of the appeal. If the applicant fails to deposit the 20% fine within the stipulated period, the bail will be automatically canceled. The application u/s 482 Cr.P.C. was disposed of with these modifications, and a copy of the judgment was directed to be communicated to the Appellate Court for immediate compliance.
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