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2023 Supreme(P&H) 2404

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
JASJIT SINGH BEDI, J.
Jaswinder Pal – Petitioner
Versus
Resham Singh & Anr. – Respondents
CRM-M-62553 of 2023 (O & M)
Decided On : 13-12-2023

Advocates Appeared:
Mr. Davinder Singh Saini, Advocate; For the Petitioner

The appellate court may impose a deposit condition under Section 148 of the N.I. Act, interpreted as mandatory for expediting cheque dishonour cases.

Headnote:(A) Negotiable Instruments Act, 1881 - Sections 138, 143A, and 148 - Quashing of order imposing deposit condition for bail - The petitioner was convicted under Section 138 and sentenced to pay compensation of Rs. 10,45,000/- - The appellate court imposed a condition to deposit 20% of the compensation for suspension of sentence, which the petitioner contested as onerous and beyond statutory provisions. (Paras 1-5)

(B) Interpretation of Statute - The amended Section 148 of the N.I. Act allows the appellate court to direct deposit of a minimum of 20% of the compensation, interpreted as a rule rather than an exception, serving the purpose of expediting cheque dishonour cases. (Paras 7-10)

Facts of the case:
The petitioner was convicted under Section 138 of the N.I. Act, sentenced to one year imprisonment, and ordered to pay compensation of Rs. 10,45,000/-. He appealed against the conviction and sought suspension of sentence, which was granted with a condition to deposit 20% of the compensation.

Findings of Court:
The court found no merit in the petitioner’s arguments against the deposit condition, affirming the appellate court's authority under Section 148 of the N.I. Act.

Issues: The main issues included the legality of imposing a deposit condition for bail and the interpretation of Section 148 of the N.I. Act.

Ratio Decidendi: The court reasoned that the appellate court has the authority to impose a deposit condition under Section 148, which serves to expedite justice in cheque dishonour cases.

Result: Petition dismissed.

JUDGMENT

Mr. Jasjit Singh Bedi, J. (Oral)

The prayer in the present petition under Section 482 Cr.P.C. is for quashing of order dated 03.10.2023 (Annexure P-2) passed by the Additional Sessions Judge, SBS Nagar in CRA-168/2023 titled as 'Jaswinder Pal v. Resham Singh', arising out Complaint No.NACT- 448/229, under Section 138 of the Negotiable Instruments Act, vide which a condition had been imposed upon the petitioner to deposit 20% of the total amount of the compensation awarded by the Trial Court within a period of 60 days in the absence of which his order of suspension of his sentence would stand vacated.

2. The brief facts of the case are that the petitioner came to be convicted under Section 138 of the Negotiable Instruments Act and was sentenced to rigorous imprisonment for a period of one year and was directed to pay the compensation amount of Rs. 10,45,000/- to the respondent No.1 vide a judgment dated 05.09.2023. A copy of the judgment dated 05.09.2023 is attached as Annexure P-1 to the petition.

3. The petitioner preferred an appeal alongwith an application for suspension of sentence. The appeal was admitted and the sentence of the petitioner was ordered to be suspended on 03.10.2023 with the condition that the petitioner was to deposit 20% of the total amount of compensation awarded within 60 days failing which his order of suspension of sentence would stand automatically vacated. A copy of the order dated 03.10.2023 is attached as Annexure P-2 to the petition.

4. It is this order which is under challenge in the present petition.

5. The learned counsel for the petitioner contends that Sections 143A and 148 of the Negotiable Instruments Act do not provide for cancellation of bail on account of non-deposit of the amount. Onerous conditions could not have been imposed by the Court for the grant of bail to the petitioner. The petitioner being a vegetable vendor did not have the financial capacity to deposit the 20% amount as ordered. The complainant had failed to prove that the cheque had been issued by the petitioner for the discharge of his legal liability. Though the alleged amount of Rs. 7,50,000/- had been paid to the accused by the complainant, the cheque for an amount of Rs. 10,25,000/- had allegedly been dishonoured. He, therefore, contends that the conditional order dated 03.10.2023 was liable to be set aside and the condition for depositing an amount of 20% of the compensation amount was liable to be quashed.

6. I have heard the learned counsel for the petitioner.

7. In 'Surinder Singh Deswal @ Col. S.S. Deswal and others v. Virender Gandhi, 2019 (3) RCR (Criminal) 186', the Hon'ble Supreme Court has held as under:-

    "9. Now so far as the submission on behalf of the appellants that even considering the language used in section 148 of the N.I. 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 to direct the appellant - accused to deposit such sum and the 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 N.I. Act as amended is concerned, considering the amended section 148 of the N.I. Act as a whole to be read with the Statement of Objects and Reasons of the amending section 148 of the N.I. Act, though it is true that in amended section 148 of the N.I. 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.I. Act confers power upon the Appellate Court to pass an order pending appeal to direct the Appellant-Accused to deposit the sum which shall not be less than 20% of the fine or compensation either

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