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C528/544/2025
2025 Latest Caselaw 3948 UK

Citation : 2025 Latest Caselaw 3948 UK
Judgement Date : 30 April, 2025

Uttarakhand High Court

C528/544/2025 on 30 April, 2025

Author: Vivek Bharti Sharma
Bench: Vivek Bharti Sharma
                     Office Notes,
                  reports, orders or
SL                  proceedings or
No
        Date
                    directions and                        COURT'S OR JUDGE'S ORDERS
                   Registrar's order
                   with Signatures
     30.04.2025                        C-528 No. 544 of 2025
                                       Hon'ble Vivek Bharti Sharma, J.

Mr. Karan Anand, learned counsel for the petitioner.

2. Mr. Pratiroop Pande, learned A.G.A. for the State.

3. Present petition has been filed by the petitioner/convict to quash the order dated 27.06.2024 passed by 4th Additional Sessions Judge, Dehradun in Criminal Appeal No. 203 of 2024 under Section 148 of the Negotiable Instruments Act, 1881 as well as the consequent order dated 20.12.2024.

4. Counsel for the petitioner/convict would submit that the respondent no. 2 had filed criminal case under Section 138 Negotiable Instruments Act, 1881 in the court of Judicial Magistrate, against the petitioner/convict; that, the said court convicted and sentenced the petitioner/convict for simple imprisonment and fine was also imposed upon him; that, being aggrieved by the same, the petitioner/convict filed criminal appeal before learned Sessions Judge, Dehradun.

He would further submit that the learned District & Sessions Judge, Dehradun vide order dated 27.06.2024 stayed the effect of the sentence against the petitioner/convict on the condition that the petitioner/convict shall deposit 20% of the compensation amount within 60 days, failing which the stay order will become void.

5. Learned counsel for the petitioner would further submit that the financial capacity of the petitioner/convict is not so strong, therefore, the petitioner/convict filed an application before the learned District & Sessions Judge, Dehradun requesting therein to exempt him to deposit 20% of the compensation amount, however, the said application was dismissed and stay order has also been vacated by the said court vide order dated 20.12.2024. Hence, this petition.

5. Learned counsel appearing for the State would vehemently oppose the petitions and would submit that the court below has rightly imposed the condition of deposition of 20% of the amount of compensation as per the applicable law.

6. Per contra, counsel for the petitioner/convict would submit that the provision of Section 148 of the Negotiable Instruments Act requiring the petitioner/convict to deposit 20% of the fine of the compensation amount is not mandatory in nature; that, Appellate Court can make an exception to the 20% deposit requirement in certain circumstances, including when the deposit condition is unjust or when the appellant would be deprived of his/her right to appeal In support of his contention, he relied upon the judgment of Jamboo Bhandari Vs. Madhya Pradesh State Industrial Development Corporation Limited and Others (2023) 10 SCC 446, wherein the Hon'ble Supreme Court ruled that the appellate court can make an exception to the 20% deposit requirement in certain circumstances. The relevant paragraph-7 of this judgment is as under:

"7. Therefore, when Appellate Court considers the prayer under Section 389 of the Cr.P.C. of an accused who has been convicted for offence under Section 138 of the N.I. Act, it is always open for the Appellate Court to consider whether it is an exceptional case which warrants grant of suspension of sentence without imposing the condition of deposit of 20% of the fine/compensation amount. As stated earlier, if the Appellate Court comes to the conclusion that it is an exceptional case, the reasons for coming to the said conclusion must be recorded."

7. To this, Counsel for the State would submit that as per Section 148 of the Negotiable Instruments Act, the condition of deposit of 20% of the fine/compensation amount is mandatory in nature, however, in view of the interpretation made in Jamboo Bhandari case (Supra), a discretion has been provided to the Appellate Court to waive off or reduce the amount to be deposited under Section 148 of the N.I. Act, only in exceptional cases and under the exceptional circumstances.

8. Issue notice to respondent no.2 through ordinary process and registered post acknowledgment due as well as through e-mail and whatsapp, if available.

9. Steps to be taken within three weeks.

11. List this case on 05.08.2025 for hearing on admission.

12. Till the next date of listing, the effect and operation of the impugned order dated 27.06.2024 passed by 4th Additional Sessions Judge, Dehradun in Criminal Appeal No. 203 of 2024 under Section 148 of the Negotiable Instruments Act, 1881 as well as the consequent order dated 20.12.2024 shall be kept in abeyance.

(Vivek Bharti Sharma, J.) 30.04.2025 Mamta

 
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