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2024 Supreme(Online)(GUJ) 390

HIGH COURT OF GUJARAT
GG
BALUBHAI MALDANBHAI NARELA – Appellant
Versus
STATE OF GUJARAT – Respondent
R/CRIMINAL REVISION APPLICATION (AGAINST ORDER PASSED BY SUBORDINATE COURT) NO. 883 of 2024



Petitioner Advocates:VIVEK R TRIVEDI(7716) ,Respondent Advocate: PUBLIC PROSECUTOR(2)

The court has the discretion to modify the condition of deposit of 20% of the compensation amount imposed by the appellate court if it is satisfied that such a condition will amount to deprivation of the right to appeal.

Headnote:

Negotiable Instruments Act - Criminal Appeal - Sections 138, 389(1) - The court modified the order of the appellate court to deposit 20% of the compensation amount, as it would frustrate the right of the petitioner to pursue the appeal, which is statutorily granted to the petitioner. The court directed the petitioner to deposit 20% of the cheque amount before the appellate court within 15 days and on such deposit, the petitioner shall be released on bail.

Fact of the Case:

The petitioner was convicted by the trial court under Section 138 of the Negotiable Instruments Act and directed to pay compensation of Rs.8,66,000/-. The petitioner filed an appeal against the judgment, and the appellate court directed the petitioner to deposit 20% of the compensation amount within 60 days for being released on bail pending the hearing of the appeal.

Finding of the Court:

The court modified the order of the appellate court, directing the petitioner to deposit 20% of the cheque amount before the appellate court within 15 days, and on such deposit, the petitioner shall be released on bail in accordance with the order dated 02.03.2024 by the appellate court.

Issues: Whether the direction of the appellate court to deposit 20% of the compensation amount is valid and in accordance with the provisions of the Negotiable Instruments Act and the Code of Criminal Procedure.

Ratio Decidendi: The court relied on the decision in Jamboo Bhandari vs. Madhya Pradesh State Industrial Development Corporation Limited & Ors., where the Supreme Court observed that the appellate court can make an exception and not impose the condition of deposit of 20% if it is satisfied that such a condition will amount to deprivation of the right to appeal. Considering the peculiar facts and circumstances of the case, the court found that the direction to deposit 20% of the compensation amount would frustrate the right of the petitioner to pursue the appeal.

Final Decision: The court modified the order of the appellate court and directed the petitioner to deposit 20% of the cheque amount before the appellate court within 15 days, and on such deposit, the petitioner shall be released on bail.

ORDER

1. RULE. Learned Additional Public Prosecutor waives service of notice of Rule on behalf of respondent– State.

2. By way of this petition, the petitioner has challenged an order dated 02.03.2024 passed in Criminal Appeal No.19 of 2024 by the learned Principal District Judge, Porbandar below Exh.4,

while releasing the petitioner on regular bail pending hearing of the Criminal Appeal, wherein the petitioner was directed to pay 20% of the compensation awarded by the trial Court to the original complainant or to deposit the same before the appellate Court within a period of 60 days.

3. Learned advocate for the petitioner submits that the petitioner is original accused in Criminal Case No.261 of 2017 where the trial Court has convicted him by judgment and order dated 31.01.2024 under Section 138 of the Negotiable Instruments Act with simple imprisonment of 1 year and directed to pay compensation of Rs.8,66,000/- which is twice the amount of cheque within a period of 1 month from the date of judgment, failing which he has to undergo further sentence of 6 months. Against the said judgment, the applicant has preferred an appeal before the appellate Court being Criminal Appeal No.19 of 2024 with an application under Section 389(1) of the Code of Criminal Procedure for suspension of sentence at Exh.4. The appellate Court, while admitting the appeal, has passed an order blow Exh.4 and directed the petitioner to deposit 20% of the compensation amount within a period of 60 days on 02.03.2024.

3.1 Learned advocate Mr. Trivedi has submitted that 20% of the compensation amount is against the provisions of Section 138 of the Negotiable Instruments Act and the same tantamount to denial of justice since the petitioner would be unable to pay the amount, since such amount would be above the capacity of the petitioner. Learned advocate has submitted that 20% of the cheque amount is the regular practice.

3.2 In support of his case, learned advocate has relied upon a decision in case of Jamboo Bhandari vs. Madhya Pradesh State Industrial Development Corporation Limited & Ors. reported in (2023) 10 SCC 446, wherein Hon'ble Apex Court has observed that normally the appellate Court will be justified in imposing the condition of deposit as provided in Section 148. However, in case where the appellate Court is satisfied that the condition of deposit of 20% will be unjust or imposing such a condition will amount to deprivation of the right to appeal or the appellant, exception can be made for the reasons specifically recorded.

Learned advocate Mr.

Trivedi submitted that the petitioner is ready and willing to deposit 20% of the cheque amount as that would help him to pursue the appeal.

4. In view of the observations made in the above referred judgment in case of Jamboo Bhandari (supra), the order of the appellate Court to deposit 20% of the compensation would frustrate the right of the petitioner to pursue his appeal, which is statutorily granted to the petitioner.

Since the compensation ordered by the trial court is on higher side, considering the peculiar facts and circumstances of the case and in view of the preposition as laid down by the Hon'ble Apex Court in the case of Jamboo Bhandari (supra), the direction issued in the impugned order dated 02.03.2024 passed by the learned Principal Sessions Judge, Porbandar in Criminal Appeal No. 19 of 2024 below Exh.4 stands modified. The petitioner is directed to deposit 20% of the cheque amount before the appellate Court and such deposit may be made within a period of 15 days from the date of receipt of writ of this order and on deposit of such amount, petitioner shall be released on bail in accordance with the order dated 02.03.2024 by the appellate Court in Criminal Appeal No. 19 of 2024 below Exh.4.

5. With above observations and directions, the petition is partly allowed in the above terms.

Rule is made absolute to the aforesaid extent.

Direct service is permitted.

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