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CRM-M No.18171 of 2026 (cid:1)(cid:2)(cid:1)

157 IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

CRM-M No.18171 of 2026 Date of Decision: 06.04.2026

Subash Poultry Farm and another ..... Petitioners

versus

Ravi Trading Company .......Respondent

CORAM: HON'BLE MR. JUSTICE RAJESH BHARDWAJ *****

Present: Mr. Surender Singh, Advocate for the petitioner.

*****

RAJESH BHARDWAJ, J. (ORAL)

1. Present petition has been filed praying for quashing of impugned order dated 05.08.2025 passed by the learned Additional Sessions Judge, Panipat, vide which the learned Appellate Court granted the relief of suspension of sentence and directed the petitioner No.2 to deposit 20% of the compensation amount and order dated 20.02.2026 vide which the application for exemption from depositing 20% amount of compensation filed by the petitioner was dismissed in case bearing CRA- 210-2025, dated 05.08.2025, titled ‘Subash Poultry Farm and another vs. Ravi Trading Company’ under Section 138 of Negotiable Instruments Act, pending before the learned Additional Sessions Judge, Panipat. Further prayer has been made for staying the operation of impugned order dated 05.08.2025 directing the petitioner to pay 20% of the cheque

amount as interim compensation.

RITTU

2026.04.07 10:04 I attest to the accuracy and integrity of this document

CRM-M No.18171 of 2026 (cid:1)(cid:3)(cid:1)

2. Learned counsel for the petitioner has submitted that the petitioner was prosecuted in a complaint filed under Section 138 of the Negotiable Instruments Act (for short ‘the Act’). He has submitted that the petitioner was convicted and sentenced by the learned Judicial Magistrate First Class, Panipat under Section 138 of the Act vide judgment dated 08/10.07.2025 and to undergo simple imprisonment for a period of 01 year and was ordered to pay compensation to the tune of Rs.30,00,000/-. He has further submitted that against the judgment dated 08/10.07.2025, the petitioner filed an appeal before the Court of learned Additional Sessions Judge, Panipat. He has submitted that sentence of the petitioner has already been suspended by the learned trial Court vide order dated 10.07.2025. He has further submitted that vide impugned order dated 05.08.2025, the learned Appellate Court had admitted the appeal for hearing and remained the suspension of the petitioner subject to deposit of 20% of the total compensation amount. He has submitted that in view of Section 148 of the Negotiable Instruments Act, 1881, automatic deposit of 10% of the compensation amount, at the appellate stage, is not mandatory. However, due to financial constraints, the petitioner failed to comply with the order dated 05.08.2025. However, he has submitted that Hon’ble the Division Bench of this Court in the case of M/s Coromandel International Limited vs. Shri Ambica Sales Corporation, in CRM-M-7799-2025 decided on 24.09.2025 has dealt with the issue involved in the present petition and has observed as under:-

“75. The legislative sanction given to an Appellate Court to direct an Appellant who has challenged the conviction, sentence, and compensation amount, by filing an appeal, to

RITTU

2026.04.07 10:04 I attest to the accuracy and integrity of this document

CRM-M No.18171 of 2026 (cid:1)(cid:4)(cid:1)

deposit at least 20% of the compensation amount under Section 148 of the Negotiable Instruments Act, 1881, miserably fails on the proportionality test. The provision of Section 148 is based on proclivities and thus arbitrary; on the contrary, as per the literal and practical meaning, it does not authorize the Appellate Court to suspend the sentence by mandatorily imposing a condition of deposit. The purpose Section 148 intended to achieve was to ensure that at least 20% of the compensation amount is handed over to the holder of the cheque whose debt or other liability amount was withheld due to the dishonor of the cheque. However, due to ambiguous drafting because of the absence of clear procedures for quick