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2023 Supreme(P&H) 2606

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
AMAN CHAUDHARY, J.
Amarjeet Singh – Petitioner
Versus
M/s. Royal Mark – Respondent
CRM-M NO.16952 of 2022
Decided On : 17-01-2023

Advocates Appeared:
Mr. Naveen Bawa, Advocate; For the Petitioner
None for the Respondent

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 and Section 148 - Quashing petition seeking modification of appellate Court's order imposing 1/3rd deposit of compensation - Appellate Court has not assigned reasons for the higher deposit, and the petitioner, affected by COVID-19, is only required to pay minimum 20% of compensation as per Section 148. (Paras 2, 6, 8)

(B) Interpretation of Statutes - The word 'may' in Section 148 of the Act confers discretion on the appellate Court; however, it is to be construed as a rule or 'shall' in specific circumstances to ensure the payment pending appeal against conviction. (Paras 7)

Facts of the case:
The petitioner was convicted under Section 138 of the Negotiable Instruments Act due to dishonor of a cheque and sentenced to rigorous imprisonment and fine. The appellate Court suspended the sentence, requiring a deposit of 1/3rd of compensation, which the petitioner contested citing financial hardships.

Findings of Court:
The Court modifies the requirement to deposit only 20% of the compensation as mandated by law, given the petitioner's financial constraints.

Issues: Whether the appellate Court’s condition to deposit 1/3rd of the compensation amount is justifiable within the context of financial hardship.

Ratio Decidendi: The appellate Court must provide reasons for imposing conditions and cannot exceed the minimum statutory requirements without justification.

Result: Petition partly allowed, requiring the petitioner to deposit 20% of compensation.

Table of Content
1. facts of the case and conviction details. (Para 1 , 2)
2. petitioner's financial inability to comply with the court's order. (Para 3)
3. reference to statutory provisions of the negotiable instruments act. (Para 5 , 6)
4. judicial interpretation and rationale behind section 148. (Para 7 , 8)
5. modification of the order in favor of the petitioner. (Para 9 , 10)

JUDGMENT

Aman Chaudhary, J.

Present petition has been filed under Section 482 Cr.P.C. for quashing of the condition imposed by the appellate Court vide order dated 04.02.2020 whereby the petitioner has been directed to deposit one third amount of the compensation amount while suspending the sentence in appeal under section 138 of the Negotiable Instruments Act, 1881 vide order dated 09.01.2020 (Annexure P-1).

2. Briefly put the facts of the case are that in a complaint filed under section 138 of the Negotiable Instruments Act, 1881 (for short 'the Act') by respondent on account of dishonour of the cheque bearing No.947034 dated 20.04.2017, learned Chief Judicial Magistrate, Mohali vide order dated 09.01.2020, has convicted and sentenced the petitioner to undergo rigorous imprisonment for one year and to pay a fine of Rs.4,80,000/-. Against which, the petitioner filed an appeal, alongwith the application for suspension of his sentence. The said application has been allowed vide order dated 04.02.2020 by learned Additional Sessions Judge, Mohali and the sentence of the petitioner has been suspended, subject to furnishing bail bond in the sum of Rs.50,000/- with one surety as well as to deposit 1/3rd amount of compensation within a period of two months.

3. Learned counsel for the petitioner submits that Section 148 (1) of the Act prescribes minimum amount of 20% as deposit, however, the learned Appellate Court has directed the petitioner to deposit 1/3rd of the amount, which due to financial loss suffered on account of COVID-19 pandemic, the petitioner is not in a position to deposit. At this stage, he submits that the petitioner is ready to deposit the minimum amount as per the provision. Thus, he prays for the modification of the order dated 04.02.2020 to the aforesaid extent.

4. Despite service, none has appeared on behalf of the respondent.

5. Heard and perused.

6. For the adjudication of the present issue, it would be apposite to refer to Section 148 of the Act, which reads thus:-

    "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."

7. Hon'ble The Supreme Court in India in the case Surinder Singh Deswal v. Virender Gandhi reported in (2019) 11 SCC 341, while dealing with the interpretation of the word 'may' in section 148(1) o

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