Appellate courts may impose a 20% deposit of compensation for appeal as per Section 148 of the Negotiable Instruments Act, ensuring rights of complainants while allowing exceptions only in demonstrated exceptional circumstances.

JUDGMENT :

SUMEET GOEL, J.

1. The present petition has been filed under Section 528 of BNSS , 2023, preferred by the petitioner impugning the order dated 29.08.2025 (Annexure P-3) passed by the learned Additional Sessions Judge, Sangrur, to the extent, that the execution of sentence and order appealed against has been suspended qua petitioner (herein) subject to depositing of 20% of the amount of compensation. The relevant portion of the impugned order reads thus:

“Criminal appeal has been received by way of entrustment. It be registered.

As there are fairly arguable points in the instant appeal, so appeal is admitted for hearing. Notice of the appeal be given to the respondent for 31.10.2025. Record of the trial Court be also requisitioned for the date fixed.

Alongwith the appeal, an application has been filed by the appellant/ accused seeking suspension of imprisonment and to release the applicant/ accused on bail during the pendency of the appeal.

Heard. Vide judgment of conviction and order of sentence dated 05.08.2025, accused has been sentenced to undergo RI for a period of one year and pay compensation amount has also been awarded to the respondent/complainant. This appeal is accompanied by an application for suspension of sentence of appellant. Hearing of the appeal is likely to take some time, so the sentence imposed upon the appellant is ordered to be suspended till further order on his furnishing bail bonds in the sum of Rs.50,000/- with one surety in the like amount, to the satisfaction of learned Trial Court/ Duty Magistrate within a period of 15 days. Trial Court is directed to send the bail bonds and surety bonds after due attestation of the same to this court. Copy of the order be sent to the learned Trial Court/ Duty Magistrate for compliance.

Appellant is directed to deposit 20% of the cheque amount awarded by the Trial Court within two months from today. The amount so deposited with the Trial Court shall be kept in the shape of FDR in Nationalized Bank, which shall be released to complainant as and when directed by this court during the pendency of appeal. A copy of this order be sent to the learned Trial Court/ Duty Magistrate for compliance.

2. Learned counsel for the petitioner has argued that the petitioner is not in a position to deposit the said amount of 20% of the compensation amount as awarded by the trial Court on account of financial difficulty and she is a disabled person. Learned counsel has further argued that due and requisite opportunity was not afforded to the petitioner before passing of the impugned order dated 29.08.2025 wherein condition for deposit of 20% of the amount of the compensation has been stipulated by the learned Sessions Court. Learned counsel has further iterated that imposition of such condition of deposit of 20% of the amount of compensation as awarded by the learned trial Magistrate would effectively amount to taking away the right of appeal of the petitioner. Thus, it has been submitted that the impugned order be quashed, to the extent, that a condition of deposit of 20% of the amount of compensation as awarded by the trial Court, has been imposed.

3. I have heard learned counsel for the petitioner and perused the paper-book.

4. Section 148 of the Negotiable Instruments Act, introduced through the 2018 amendment, empowers appellate courts to mandate the deposit of at least 20% of the fine or compensation amount by the accused as a condition for hearing an appeal against a conviction in cheque dishonour cases under Section 138 . This provision aims to address the prolong