IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Vikas Bahl, J.
Rajni Bala - Appellant
Versus
Santosh Kumar & Anr. – Respondents
CRM-M-6547 of 2022
Decided On : 15-02-2022
Section 138 of the Negotiable Instruments Act, 1881 - Appellate Court's Power to Order Payment Pending Appeal - Applicability of Section 148(1) of the Act of 1881
Fact of the Case:
The petitioner filed a petition under Section 482 of Cr.P.C. to quash an order directing her to deposit 20% of the compensation amount in a case related to dishonour of a cheque under Section 138 of the Negotiable Instruments Act, 1881.
Finding of the Court:
The court found that the Appellate Court has the power to direct an appellant to deposit a minimum of 20% of the fine or compensation awarded by the trial Court, as per Section 148(1) of the Act of 1881. The petitioner's claim of being a poor lady was not considered sufficient to exempt her from making the deposit, especially when there was no evidence to support her claim.
Issues: The issues involved the petitioner's challenge to the impugned order directing her to deposit 20% of the compensation amount and her claim of being a poor lady.
Ratio Decidendi: The Appellate Court has the power to order an appellant to deposit 20% of the fine or compensation awarded by the trial Court, as per Section 148(1) of the Act of 1881. The petitioner's financial status and delay in filing the petition were not considered sufficient grounds to challenge the impugned order.
Final Decision: The petition was dismissed by the court.
JUDGMENT
Vikas Bahl, J. (Oral). - This is a petition filed under Section 482 of Cr.P.C. for quashing the impugned order dated 25.02.2020 (Annexure P-3) passed by the Additional Sessions Judge, Kapurthala in CRA-47-2020 arising out of complaint bearing NACT-6-2018 dated 06.02.2018 registered under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter to be referred as "the Act of 1881") titled as "Santosh Kumar Vs. Rajni Bala" whereby the petitioner was directed to deposit 20% of the compensation amount in view of Section 148(1) of the Act of 1881.
2. Learned counsel for the petitioner has submitted that the impugned order is bad inasmuch as the petitioner is a poor lady and is not in a position to pay the said money.
3. This Court has heard the learned counsel for the petitioner and has perused the paper book.
4. The complaint under Section 138 of the Act of 1881 was filed by Santosh Kumar-complainant against the present petitioner on the allegations that the loan amounting to Rs.2,50,000/- was taken by the present petitioner and to discharge the said loan, cheque No.635759 dated 29.11.2017 of an amount of Rs.2,50,000/- was issued by the petitioner drawn over Dena Bank, Kapurthala from her account in favour of the complainant. The said cheque was dishonoured on account of "funds insufficient" and thereafter, the legal notice was served. Since, money is not paid, thus, complaint under Section 138 of the Act of 1881 was filed. The Judicial Magistrate, Ist Class, Kapurthala, after considering the entire material on record, had convicted and sentenced the present petitioner under Section 138 of the Act of 1881 for a period of one year rigorous imprisonment and further directed the petitioner to pay compensation to the tune of Rs.2,50,000/- to the complainant. Thereafter, the petitioner had filed an appeal and vide order dated 25.02.2020, the said appeal was admitted and an application under Section 389 of Cr.P.C. was also filed alongwith the appeal seeking suspension of sentence and the same was also granted to the petitioner. Further, direction was given to the petitioner to deposit 20% of the compensation amount in view of Section 148(1) of the Act of 1881. The said direction is in consonance with the power of the Appellate Court under Section 148 of the Act of 1881. Section 148 of the Act of 1881 is reproduced hereinbelow:-
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. From the above, it is apparent that as a matter of Rule, the Appellate Court has the power to direct an appellant, who has filed an appeal against the judgment of conviction under Section 138 of the Act of 1881 and the order
The Appellate Court has the power to order an appellant to deposit 20% of the fine or compensation awarded by the trial Court, as per Section 148(1) of the Act of 1881.
The Appellate Court has the power to order the appellant to deposit 20% of the compensation amount as per Section 148(1) of the Negotiable Instruments Act, 1881.
The court emphasized that the power to direct the deposit under Section 148 can be exercised at any stage during the pendency of the appeal, and the provision does not affect the substantive right of....
The appellate court can waive the 20% deposit requirement under Section 148 of the NI Act if compelling circumstances are demonstrated.
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