SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Online)(Kar) 8869

THE HIGH COURT OF KARNATAKA
M. Nagaprasanna, J
Santosh Kumar. G – Appellant
Versus
R. S. Impression – Respondent
CRL.P No. 2137 of 2026



Advocates:
For the Appellants/Petitioners: Manu N.P.
For the Respondents: N. K. Kantharaju

The requirement under Section 148 of the Negotiable Instruments Act to deposit 20% of the fine for suspension of sentence is not an absolute rule. Appellate courts must exercise discretion to determine if a case warrants an exception, recording reasons where the condition is found to be unjust.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138, 148 - Code of Criminal Procedure, 1973 - Section 389 - Bharatiya Nagarik Suraksha Sanhita, 2023 - Section 528 - Suspension of sentence - Condition of 20% deposit - Appellate court's discretion - The court emphasized that the requirement to deposit 20% of the fine under Section 148 is not a straightjacket formula and is not an absolute rule - Appellate courts must exercise their discretion and record specific reasons if they find a case falls under an exception where the condition of deposit would be unjust or deprive the appellant of their right to appeal. (Paras 8, 9, 10)

Facts of the case:
The petitioner was convicted of an offence under Section 138 of the Negotiable Instruments Act. Upon filing an appeal, the petitioner deposited 20% of the fine amount (Rs.5,00,000/-) to secure a suspension of sentence. The matter was subsequently remitted back to the trial court due to a procedural lacuna, following which the fine was doubled to Rs.50,00,000/-. The appellate court then directed the petitioner to deposit a further 20% (Rs.10,00,000/-) of the revised fine amount, which the petitioner challenged.

Findings of Court:
The High Court set aside the impugned order of the appellate court for failure to apply its mind and consider the facts, specifically the petitioner's prior deposit of 20%. The matter was remanded back to the appellate court to pass a fresh order taking into account the observations made by the Supreme Court in the cited precedent regarding the appellate court's discretion in imposing conditions under Section 148.

Issues: Whether the appellate court is mandatorily required to impose a blanket condition of 20% deposit for suspension of sentence under Section 148 of the Negotiable Instruments Act in every case without considering the specific circumstances.

Ratio Decidendi: Following the Apex Court ruling, the High Court held that while the court usually directs a 20% deposit, it is not an absolute rule; the court must consider if the case is an exception and must record reasons for its decision, especially when the appellant has already complied with the statutory requirement in previous instances.

Result: Petition disposed of; the matter was remanded to the concerned court for fresh consideration.

Table of Content
1. procedural history following conviction under negotiable instruments act. (Para 1 , 2)
2. parties' arguments regarding the mandatory nature of 20% deposit. (Para 3 , 4 , 5)
3. judicial discretion regarding 20% deposit for suspension of sentence. (Para 6 , 7 , 8 , 9 , 10)
4. direction to conclude proceedings expeditiously. (Para 11 , 12)

THIS CRL.P IS FILED U/S 482 OF THE CR.PC (FILED U/S 528 BNSS) PRAYING TO THE ORDER DATED 09/12/2025 MADE ON IA NO.NIL, ON THE APPLICATION UNDER SECTION 528 OF BNSS, IN CRI.APL.NO.1636/2025, ON THE FILE OF LXVII ADDL CITY CIVIL AND SESSION JUDGE, AT BENGALURU, (CCH -68).

THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

ORAL ORDER

1. The petitioner is before this Court calling in question an order of the concerned Court dated 09.12.2025, which rejects an application filed by the complainant seeking modification of the order and directing deposit of 20% of the fine amount, which would amount to Rs.10,00,000/-, owing to the backdrop of the situation. The petitioner is the accused. The respondent is the complainant. The two have a transaction. The transaction leads to the accused issuing certain cheques in favour of the complainant. The cheques have been dishonoured, the complainant institutes proceedings invoking Section 200 of the Cr.P.C. for offence punishable under Section 138 of the Negotiable Instruments Act, 1881 ('the NI' Act for short).

2. The petitioner gets convicted of the offence, files an appeal against the conviction. While filing the appeal had deposited 20% of the fine amount that was determined by the trial Court in terms of the order of conviction on 06.01.2025. The First Appellate Court after the said deposit notices procedural lacunae in the order passed by the concerned Court and remits the matter back to the hands of the trial Court for a reconsideration of the issue on its merit all over again. The reconsideration turns worse off to the present petitioner, as the fine amount is now doubled from Rs.25,00,000/- to Rs.50,00,000/-. The petitioner again approaches the First Appellate Court challenging the order of conviction dated 26.09.2025. The respondent/complainant now files an application that he should deposit 20% of the amount that is newly determined on the remand proceedings i.e., Rs.50,00,000/-, the fine amount and 20% being Rs.10,00,000/-. The said order which direct deposit of 20% of the fine amount, which is now determined at Rs.10,00,000/- is what has driven the petitioner to this Court in the subject petition.

3. Heard Sri. Manu N.P., learned counsel appearing for the petitioner and Sri. N.K. Kantharaju, learned counsel appearing for the respondent.

4. The learned counsel appearing for the petitioner submits that the petitioner had in fact deposited 20% diligently at the first instance, when the appeal was preferred against conviction. In the second instance, this fine is doubled. Therefore, he sought indulgence at the hands of the concerned Court to dispense with deposit of 20% of the doubled fine amount in the second proceeding and the complainant files an application seeking deposit of the said 20% of the fine amount and that is accepted. The learned counsel further submits that the order of the concerned Court is bereft of reasons without considering the fact that there was an earlier deposit.

5. The learned counsel appearing for the respondent/complainant submits that the issue is the following of the mandate of the statute. Under Section 148 of the NI Act, it is the mandate that 20% of the fine amount or compensation determined by the concerned Court is imperative. Therefore, seeks dismissal of the petition.

6. I have given my anxious consideration to the submissions made by the respective learned counsel and have perused the available material on record.

7. The afore-narrated facts, dates linked in the chain of events are all a matter of record. The f

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top