PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
SANJAY VASHISTH, J.
Sita Ram - Appellant
Vs.
Madan Lal - Respondent
CRM-M-8412-2025
Decided On : 14-02-2025
JUDGMENT :
Sanjay Vashisth, J.
Prayer in the present petition filed under Section 528 of BNSS, 2023, is for quashing of the impugned order dated 02.03.2024 (Annexure P- 2), passed by learned Additional Sessions Judge, Ludhiana, in Criminal Appeal No.CRA-229/2024, titled as 'Sita Ram Vs. Madan Lal', whereby, learned Court directed the petitioner to deposit 20% of the compensation amount in the shape of FDR.
2. Learned counsel for the petitioner has stated that petitioner was prosecuted in a complaint under Section 138 of the Negotiable Instruments Act, 1881 (for short, 'the Act') and he was convicted by learned Judicial Magistrate Ist Class, Ludhiana, under Section 138 of the Act, vide judgment dated 05.02.2024 (P1) and sentenced to undergo rigorous imprisonment for a period of one year and was also ordered to pay compensation of Rs.1,95,000/-(Rupees one lac and ninety five thousand only) to the complainant(respondent herein).
Counsel further submitted that challenging the judgment dated 05.02.2024, the petitioner filed an appeal before the Court of learned Additional Sessions Judge, Ludhiana and thereupon learned Appellate Court vide its impugned order dated 02.03.2024 (Annexure P-2) suspended the order of sentence qua petitioner, subject to deposit 20% of the compensation amount in the shape of FDR with the aid of Section 148 of the Act. Due to the financial constraints, petitioner failed to comply with the order dated 02.03.2024, however counsel submits that even otherwise also, impugned order dated 02.03.2024 passed by the learned Appellate Court is in violation of the law settled by Hon'ble Supreme Court in Jamboo Bhandari vs M.P.State Industrial Development Corporation Ltd. and others, 2024(1) SCC (Cri) 90, wherein it has been held that while considering the prayer under Section 389 of the Cr.P.C. of an appellant who has been convicted for offence under Section 138 of the Act, it is always open for the Appellate Court to consider, whether the appeal before it, is an exceptional case or not, which warrants grant of suspension of sentence, but without imposing the condition to deposit 20% of the fine/compensation amount. And, if the Appellate Court comes to the conclusion that it is an exceptional case, the reasons for coming to the said conclusion must be recorded, which is missing in the present case. It is submitted that learned Court below has not appreciated the facts of the case and other circumstances of the petitioner, as per mandate of the Hon'ble Supreme Court in Jamboo Bhandari's case (supra).
3. After hearing learned counsel for the petitioner and perusing the record, it is apparent that sentence of the petitioner was suspended by learned Appellate Court subject to the deposit of 20% of the compensation amount awarded by learned trial Court. However, petitioner did not comply with the same.
This Court is of the view that dispute raised through the present petition can be decided in limine and without calling the other side here, because the way this Court intends to dispose of the present petition, no prejudice would be suffered by the complainant qua his rights.
4. This Court finds that the plea of the petitioner is that impugned order dated 02.03.2024 passed by learned Additional Sessions Judge, Ludhiana is without adhering to the directions issued by the Hon'ble Apex Court in Jamboo Bhandari's case (supra), as also in the case of 'Muskan Enterprises and another Vs. The State of Punjab and another', 2024 SCC Online SC 4107, Law Finder Doc Id #2680202'.
5. The Hon'ble Apex Court in Jamboo Bahndari case (Supra) and Muskan Enterprises case (Supra) has laid down certain parameters while considering Section 148 of the Act for the purpose of interpretation. It has been held that the object of Section 148 of the Act is not mandatorily to be followed rather, it is directive and the direction to pay or deposit 20% of the compensation amount, which is maximum, is to be passed by the concerned Court after examining the facts and
Dishonour of cheque – Suspension of sentence – Imposition of condition by first appellate court to deposit 20% of compensation amount awarded is valid.
The appellate court must evaluate if a case is exceptional to waive the mandatory 20% deposit under Section 148 of the Negotiable Instruments Act.
The appellate court can waive the 20% deposit requirement under Section 148 of the NI Act if compelling circumstances are demonstrated.
The appellate court has discretion under Section 148 of the NI Act to impose a deposit condition, which is not mandatory and must be justified based on case specifics.
Petitioners cannot be compelled to deposit 20% of compensation for bail under Section 138 NI Act, as this condition infringes on their right to appeal and to liberty.
The Appellate Court must consider exceptional circumstances before imposing a deposit requirement under Section 148 of the Negotiable Instruments Act.
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....
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