The Appellate Court may require a convict to deposit a percentage of the imposed fine pending appeal, ensuring conditions for the recoverability of funds are established.

C.S.DIAS, J.

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Crl.M.C. No. 9240 OF 2025 -----------------------------------------

Dated this the 17^th day of October, 2025 ORDER The petitioner was the accused in C.C.No.79/2022 filed by the 1^st respondent before the Court of the Judicial First Class Magistrate-III, Ernakulam (‘Trial Court’, in short) for allegedly committing the offence punishable under Section 138 of the Negotiable Instruments Act (‘N.I.Act’, in short). The petitioner was convicted and sentenced to undergo simple imprisonment for one month and pay a fine of Rs.10,50,000/-. Assailing the judgment, the petitioner filed Crl.A No.595/2024 before the Court of the Additional Sessions Judge-V, Ernakulam (‘Appellate Court’, for brevity.) With the appeal, the petitioner filed applications to suspend the sentence and exempt him from depositing 20% of the fine amount as per the mandate under Section 148 of the N.I.Act. The Appellate Court allowed both the applications. Aggrieved by the order granting exemption to the petitioner from making the pre- deposit, the 1^st respondent filed Crl.M.C.No.4593/2025 before this Court, which was allowed by directing the Appellate Court to reconsider the application. Consequently, the Appellate Court directed the petitioner to deposit 20% of the fine amount. Accordingly, the petitioner deposited the 20% of the fine amount before the Trial Court. On making the deposit, the 1^st respondent filed Crl.M.P.No.4568/2025 for a direction to release the deposited amount to him and the petitioner filed Crl.M.P.No.4606/2025 for a direction to deposit the amount in the Government Treasury in fixed deposit. By the impugned Annexure-A4 order, the Appellate Court rejected the petitioner’s application and allowed the 1^st respondent’s application. Annexure-A4 order is improper, illegal and irregular. Hence, the Crl.M.C.

2. Heard; the learned Counsel for the petitioner, the learned Counsel for the 1^st respondent and the learned Public Prosecutor.

3. Section 148 of the N.I.Act reads thus:

“148. Power of Appellate Court to order payment pending appeal against conviction.—

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), in an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of twenty per cent of the fine or compensation awarded by the trial Court:

Provided that the amount payable under this sub-section shall be in addition to any interim compensation paid by the appellant under section 143A.

(2) The amount referred to in sub-section (1) shall be deposited within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the appellant.

(3) The Appellate Court may direct the release of the amount deposited by the appellant to the complainant at any time during the pendency of the appeal:

Provided that if the appellant is acquitted, the Court shall direct the complainant to repay to the appellant the amount so released, with interest at the bank rate as published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year, within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the complainant”.

4. Subsection (3) of Section 148 of the N.I.Act empowers the Appellate Court to release the amount deposited by the appellant to the complainant at any time during the pendency of the appeal, provided if the appellant is acquitted, the Court shall direct the complainant to repay the appellant the amount so released with interest at bank rate as published by the Reserve Bank of I