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.

DEEPAK GUPTA, J.

Petitioner is aggrieved by the order dated 24.08.2023 passed by ld. Additional Sessions Judge, Moga in CRA-239-2023, whereby he has been directed to deposit 20% of the compensation as awarded by the trial Court.

2. As it emerges on perusal of the paper-book, petitioner was convicted on 24.07.2023 by the Court of Ld. Sub Divisional Judicial Magistrate, Baghapurana, in case No. NACT 109/2021 tiled ‘The Moga Central Co-op. Bank Ltd. Vs. Chamkaur Singh’ under Section 138 of the Negotiable Instruments Act, 1881 [for short ‘the NI Act’] and was sentenced to undergo rigorous imprisonment for a period of 2 years and to pay fine of Rs.5,000/- with default sentence. In addition thereto, petitioner was further directed to pay compensation to the extent of Rs.16,48,120/- i.e., equivalent to the cheque amount, which was also recoverable, in accordance with law.

3. Against the abovesaid conviction and sentence, petitioner filed appeal. Vide impugned order dated 24.08.2023 of the appellate court, though sentence of the petitioner was suspended under Section 389 CrPC till final disposal of the appeal, but at the same time it was made subject to the condition that petitioner shall deposit 20% of the compensation amount as mentioned by the trial Court within 30 days as provided under Section 148 of the NI Act and as per the legal position explained by Hon’ble Supreme Court in Surinder Singh Deshwal @ Col. S.S. Deswal and others Vs. Virender Gandhi and another, 2020(2) SCC 514.

4. The aforesaid order dated 24.08.2023 has been assailed in the present revision by submitting that petitioner is a small farmer doing organic farming. During the Covid period, he went into loss and therefore his case falls in the ‘exceptional circumstances’ inasmuch even his application for waiving the loan is pending in the office of Special Principal Secretary to the Chief Minister, Punjab as per letter Annexure P2.

5. Ld. Counsel further contends that even in his statement under Section 313 CrPC, petitioner had denied the allegation of complaint and had taken the plea of false implication to the effect that neither he had taken any loan except one agricultural loan/limit not had given any cheque to the complainant/Bank. Ld. counsel contends that in view of the exceptional circumstances, the condition of deposit of 20% of the compensation amount is liable to be exempted in view of the legal position explained by Hon’ble Supreme Court in “Jamboo Bhandari Vs. M.P. State Industrial Development Corporation Ltd. and others” [Criminal Appeal No.2741 of 2023 (@ SLP (Crl.) No.4927 of 2023)].

6. I have considered submission of counsel for the petitioner.

7. In the case of Surinder Singh Deshwal @ Col. S.S. Deswal (Supra), Hon’ble Supreme Court interpreted the word “may” appearing in Section 148 of the NI Act as “shall” and held that relief of suspension of sentence under Section 389 CrPC can be granted only by directing the accused to deposit minimum of 20% of the compensation/fine amount. It was held as under:-

"8. Now so far as the submission on behalf of the appellants that even considering the language used in Section 148 of the NI Act as amended, the appellate court "may" order the appellant to deposit such sum which shall be a minimum of 20% of the fine or compensation awarded by the trial court and the word used is not "shall" and therefore the discretion is vested with the first appellate court has construed it as mandatory, which according to the learned Senior Advocate for the appellants would be contrary to the provisions of Section 148 of the NI Act as amended is concerned, considering the amended Section 148 of the NI Act as a whole to be read with the Statement of Objects and Reasons of the amending Section 148 of the NI Act, the word used is "may", it is generally to be construed as a "rule" or "shall" and not to direct to deposit by the appellate court is an exception for which special reasons are to be assigned.

Therefore, amended Section 148 of the N