MANISHA BATRA
Garg Traders – Appellant
Versus
Ashok Kumar – Respondent
JUDGMENT :
Manisha Batra, J.
The instant petition has been filed by the petitioners seeking quashing of order dated 22.12.2023 passed by learned Additional Sessions Judge, Sangrur passed in CRA/508/2023 titled as Garg Traders & another vs. Ashok Kumar, whereby, while suspending the sentence of the owner of the petitioner-firm i.e. petitioner No.2 as awarded to him in criminal complaint filed under section 138 of Negotiable Instruments Act, 1881(for short ‘N.I. Act’) to deposit 20% of the compensation amount as awarded by the trial Court within a period of 60 days from the date of passing of order.
2. It is argued by learned counsel for the petitioners that the impugned order is not sustainable in the eyes of law as learned appellate Court, while giving such direction failed to consider the fact that deposit of 20% of the compensation amount was not absolute requirement for suspension of sentence and this condition was to be imposed in exceptional circumstances. Hence, it is urged that the impugned order passed by the appellate Court is liable to be set aside. To fortify his argument, he has placed reliance upon the judgments passed by the co-ordinate Bench of this Court in Abdul Rashi
Jamboo Bhandari vs. M.P. State Industrial Development Corporation Ltd. And others
The deposit of 20% of the compensation amount for suspension of sentence is not an absolute requirement and should consider exceptional circumstances.
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.
A speaking order is necessary for imposing the condition to deposit 20% of the compensation for suspending the sentence, as per the principle laid down by the Apex Court in Jamboo Bhandari v. M.P. St....
The requirement for a 20% deposit under Section 148 of the Negotiable Instruments Act is not absolute and can be waived in exceptional cases to prevent injustice to the accused's right to appeal.
The court emphasized that mandatory deposit provisions under Section 148 may hinder access to justice, directing prompt appeals hearings for those unable to comply due to financial constraints.
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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