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Indian Laws - Highlights / Catch Notes

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The High Court addressed a case involving the dishonour of a ...


Appellate court must provide a reason for imposing conditions u/s 148 of the Negotiable Instruments Act. Blanket orders not acceptable.

June 6, 2024

Case Laws     Indian Laws     HC

The High Court addressed a case involving the dishonour of a cheque and the imposition of a condition to deposit a specific amount u/s 148 of the Negotiable Instruments Act. Referring to a Supreme Court decision, it was emphasized that the appellate court must provide reasons for imposing such conditions and cannot issue a blanket order for all cases. The court highlighted the need for a speaking order when ordering a deposit, which can vary from the minimum prescribed amount. The High Court found the lower court's order unsustainable as it lacked proper reasoning and did not require the appellant to execute a bond. Consequently, the direction to deposit 20% of the compensation amount was set aside, and the criminal case was allowed.

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