IMPORTANT POINTS
(1) N.I. Act is a Special Act and in view of Special Act, provisions of Cr.P.C. will be subject to Section 148 N.I. Act.
(2) Dishonour of cheque – Requirement to deposit 20% of amount of compensation amount in order to file appeal has to be complied with.

JUDGMENT (ORAL)

Pankaj Purohit, J.—Heard learned counsel for the parties.

2. By means of this C528 application, applicant has challenged the order dated 13.08.2024 passed by learned 2nd Additional Sessions Judge, Dehradun in Criminal Appeal No. 41 of 2024, Ashok Kumar Vs. State of Uttarakhand and Others, whereby the application filed by the applicant i.e. for exempting him for depositing 20% of the amount of compensation was rejected vide order dated 14.02.2024.

3. Applicant was convicted under Section 138 of the N.I. Act vide the judgment and order dated 19.01.2024 passed by learned Additional CJM Dehradun in Complaint Case No. 2107 of 2019, Attar Singh vs. Ashok Kumar and sentenced to undergo six months’ simple imprisonment with fine of Rs.10,90,000/- , with default stipulation of one month additional simple imprisonment. Thereafter, applicant preferred a Criminal Appeal No.41 of 2024, Ashok Kumar vs. Attar Singh & others, wherein while admitting the appeal vide order dated 14.02.2024, he was directed to deposit 20% of the compensation i.e. Rs.2,18,000/- within ten days. The said amount was not deposited. On application moved by applicant on 20.04.2024, he was given 30 days more time to deposit the 20% of the amount as stated above, but he failed to deposit the said amount and moved an application for exemption.

4. It is contended by learned counsel for the applicant that the Appellate Court vide order dated 14.02.2024 directed the applicant to deposit 20% of total amount of compensation, as per the mandate prescribed under Section 148 of the N.I. Act, which is reproduced as under:—

“Section 148:- Power of Appellate Court to order payment pending appeal against conviction.

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), in an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of twenty per cent. of the fine or compensation awarded by the trial Court:

Provided that the amount payable under this sub-section shall be in addition to any interim compensation paid by the appellant under section 143A.

(2) The amount referred to in sub-section (1) shall be deposited within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the appellant.

(3) The Appellate Court may direct the release of the amount deposited by the appellant to the complainant at any time during the pendency of the appeal:

Provided that if the appellant is acquitted, the Court shall direct the complainant to repay to the appellant the amount so released, with interest at the bank rate as published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year, within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the complainant.”

5. It is also submitted by learned counsel for the applicant that the word ‘may’ used under Section 148 of the N.I. Act makes it a non-mandatory provision. He also relied upon the Judgment rendered by Hon’ble Supreme Court in SLP (Crl.) No.11906 of 2022 dated 24.11.2023 (Ashok Kumar Vs. State of Uttarakhand and Another), whereby, the Hon’ble Supreme Court has observed as under:—

“....During the course of submissions learned counsel for the appellant drew our attention to a recent judgment of this Court in the case of Jamboo Bhandari Vs. M.P. State Industrial Development Corp. Ltd. reported in (2023) SCC OnLine SC 1144 dated 04.09.2023 and particularly to Paragraph 6 of the said judgment, which reads as under:—

“What is held by this Court is that a purposive interpretation should be made of Section 148 of the N.I. Act. Hence, normally, Appellate Court will be justified in imposing the condition of deposit as provided in Section 148. However,