HIGH COURT OF RAJASTHAN (JAIPUR BENCH)
MR. JUSTICE GANESH RAM MEENA, J
Suresh Kumar Bhakhadiwal S/O Late Shri Pokharmal - Appellant
Versus
State of Rajasthan - Respondent
CRLMP / 544 / 2025
Decided On : 05-02-2025
(A) Negotiable Instruments Act - Section 138 and 148 - Suspension of sentence - Condition of depositing 20% of compensation amount modified to 5% due to petitioner's financial distress - Court emphasized that exceptions to deposit requirements should be considered based on individual circumstances. (Paras 10, 11, 12, 13)
(B) Right to Appeal - The appellate court must consider whether imposing a deposit condition would deprive the appellant of their right to appeal, and if so, must record reasons for exceptions. (Paras 6, 10)
Facts of the case:
The petitioner was convicted under Section 138 of the Negotiable Instruments Act and sentenced to one year of imprisonment, along with a compensation order. An appeal was filed against the conviction and the appellate court imposed a condition to deposit 20% of the compensation amount for suspension of the sentence. (Paras 7, 8)
Findings of Court:
The court modified the appellate court's order, requiring the petitioner to deposit only 5% of the compensation amount, considering the petitioner's financial situation. (Paras 12, 13)
Issues: The main issues addressed were whether the condition of deposit was necessary and the financial ability of the petitioner to comply with it. (Paras 10, 11)
Ratio Decidendi: The court determined that the imposition of a deposit condition must be justified based on the financial circumstances of the petitioner and that the appellate court should be flexible in its application of the deposit rule. (Paras 10, 11)
Result: The petition was partly allowed, modifying the deposit condition to 5%.
Order :
1. The present petition has been filed by the petitioner assailing the order dated 06.12.2024 passed by the Court of learned Special Judge (Fake Currency Cases) Jaipur Metropolitan-I (herein after is referred to as 'the appellate Court') in Regular Criminal Appeal No.44/2024 (Suresh Kumar Bhakdiwal Vs. State and Anr.), whereby the appellate Court while allowing the application for suspension of sentence of the accused-petitioner, has imposed a condition of depositing twenty percent (20%) i.e. Rs.74,800/- of the compensation amount within a period of sixty (60) days.
2. Counsel for the petitioner submits that the petitioner belongs to an Average Poverty Line Category (in short 'APL') and he is maintaining his family after getting 'ration' under the National Food Security Act.
3. Counsel for the petitioner has placed reliance on the judgment of Hon'ble the Apex Court in case of Jamboo Bhandari Vs. M.P. State Industrial Development Corporation Ltd. & Ors. :(2023) 10 SCC 446 passed in Criminal Appeal No.2741/2023 (SLP (Crl.) No.4927/2023) decided on 04.09.2023 and so also the order dated 08.07.2024 passed by the Co-ordinate Bench of this Court at Principal Seat Jodhpur in S.B. Criminal Misc. (Pet.) No.2745/2024 (Ram Kumar Vs. Manish Kumar & Anr.) and further submits that looking to the financial condition of the petitioner, the condition of depositing twenty percent (20%) of the compensation amount as imposed by the appellate Court upon the petitioner vide order dated 06.12.2024, may be waived.
4. Learned Public Prosecutor has opposed the prayer made on behalf of the petitioner.
5. Heard.
6. Considered the submissions made at bar and also gone through the documents submitted by the petitioner with regard to financial condition of the petitioner and also perused the judgments as referred above.
7. The petitioner was convicted vide judgment dated 06.11.2024, passed by the Court of Special Judicial Magistrate (N.I.Act Cases) No.13, Jaipur Metropolitan-I in Regular Criminal Case No.4153/2022 (C.I.S. No.13045/2020) for offence under Section 138 the Negotiable Instruments Act (in short 'N.I.Act') and was sentenced to undergo one year simple imprisonment and was also directed to pay compensation of Rs.3,74,000/- and in default of payment of compensation amount, he has to undergo two months additional simple imprisonment.
8. The petitioner against the judgment of conviction and sentenced, preferred an appeal No.44/2024 before the appellate Court and the appellate Court vide order dated 06.12.2024 allowed the application for suspension of sentence. The petitioner alongwith the application for suspension of sentence, moved an application to waive the requirement of depositing twenty percent (20%) i.e. Rs.74,800/- of the compensation amount, as per the provisions of Section 148 N.I.Act.
9. The appellate Court vide order dated 06.12.2024 allowed the application for suspension of sentence of the petitioner, however, imposed the condition of depositing twenty percent (20%) i.e. Rs.74,800/- of the compensation amount within a period of sixty (60) days.
10. The Hon'ble Apex Court in case of Jamboo Bhandari (supra) has observed as under:-
"6. 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, in a case where the Appellate Court is satisfied that the condition of deposit of 20% will be unjust or imposing such a condition will amount to deprivation of the right of appeal of the appellant, exception can be made for the reasons specifically recorded.
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 co
The appellate court must assess the financial circumstances of the accused when imposing deposit conditions for suspension of sentence under the Negotiable Instruments Act.
The main legal point established in the judgment is that the appellate Court has the power to dispense with the deposit of a minimum of 20% of the fine or compensation amount if an exceptional case i....
The deposit of 20% of the compensation amount under Section 138 of the NI Act may be exempted in exceptional circumstances, as supported by legal precedents.
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