Point of Law: Section 148 of N.I. Act delineates Power of Appellate Court to order payment pending appeal against conviction.

JUDGMENT :

JYOTSNA REWAL DUA, J.

1. Notice. Mr. Arvind Sharma, learned counsel, appears and waives service of notice on behalf of the respondent.

With the consent of learned counsel for the parties, the matter is heard at this stage.

2. The petitioner was accused in the proceedings initiated by the respondent-Bank under Section 138 of the Negotiable Instruments Act, 1881 (in short ‘N.I. Act’) before the learned Trial Court. Vide judgment dated 10.01.2023, learned Trial Court convicted the petitioner for the aforesaid offence. The petitioner was sentenced to undergo simple imprisonment for a period of six months and to pay compensation of Rs. 5,50,000/- to the complainant. In default of payment of compensation amount, he was to undergo further simple imprisonment for two months.

3. The petitioner preferred an appeal against the judgment of conviction and order of sentence dated 10.01.2023. Alongwith the appeal, the petitioner moved an application for suspension of sentence. Learned Appellate Court on 13.02.2023, suspended the sentence imposed upon the petitioner. The order was, however, subject to deposit of 40% of the compensation amount by the petitioner and thereafter furnishing personal bond in the sum of Rs. 3,00,000/- by him with one surety in the like amount to the satisfaction of the learned Trial Court. The grievance of the petitioner in the instant petition pertains to the condition of deposit of 40% of the compensation amount levied upon him under the impugned order dated 13.02.2023 for suspension of sentence by the learned Appellate Court.

4. Heard learned counsel for the parties.

5. Section 148 of the N.I. Act delineates Power of Appellate Court to order payment pending appeal against conviction in the following manner:

“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 subsection 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 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.”

6. In terms of Sub-Section (1) of Section 148, the Appellate Court is empowered to order suspension of sentence subject to the appellant depositing minimum 20% of the fine or compensation awarded by the learned Trial Court.

7. In Surinder Singh Deswal and Others vs. Virender Gandhi, (2019) 11 SCC 341, Hon’ble Apex Court considered the amendment carried out in Section 148 of the N.I. Act. It was observed that to curb the delay tactics of unscrupulous drawers of dishonoured cheques due to easy filing of appeals and obtaining stay on proceedings, the object and purpose of Section 138 of the N.I. Act was being frustrated. The amendment carried out in Section 148 of the N.I. Act, by which the First Appellate Court in an appeal challenging the order of conviction under Section 138 of the N.I.