The HC allowed the petition challenging the ASJ's orders ...

Section 148 NI Act: Court Sets Aside Order Requiring 20% Compensation Deposit Due to Insufficient Reasoning

March 18, 2025

Case Laws     Indian Laws     HC

The HC allowed the petition challenging the ASJ's orders requiring deposit of 20% compensation under Section 148 of the NI Act. The Court found that the ASJ's reasoning was insufficient, as neither the NI Act's presumptions nor the petitioner's conviction by the MM constituted adequate grounds for mandating the deposit at the appeal's threshold. The Court determined that requiring such deposit would effectively prejudge the pending appeal. The HC concluded that the ASJ failed to provide clear findings regarding whether the petitioner had established exceptional circumstances warranting waiver of the deposit requirement, rendering the impugned orders inadequate in their reasoning and justification.

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