Suspension of sentence in Section 138 NI Act cases may be granted upon the deposit of a percentage of the compensation amount, even if a previous bail was cancelled for non-payment due to technical errors.

O R D E R

Leave granted.

This criminal appeal challenges the order dated 17.11.2025 passed by the Punjab and Haryana High Court at Chandigarh in CRM-M-64846-2025, whereby the appellant’s application for suspension of sentence was dismissed.

The appellant, Ravi Kant Bhardwaj faced trial in connection with a complaint under Section 138 of the Negotiable Instruments Act, 1881 (for short ‘NI Act’) on an allegation of having dishonoured Cheque No. 025889 dated 15.07.2018 for an amount of Rs.15,00,000/-.

By judgment dated 07.08.2023 in Complaint No. NACT-14-2019, the Judicial Magistrate First Class, Chandigarh convicted the appellant under Section 138 of the NI Act and awarded a sentence of rigorous imprisonment for a period of one year. Further, the appellant was directed to pay Rs.15,00,000/- to the complainant by way of compensation.

The appellant, being aggrieved by the order of conviction passed by the Trial court, filed CRA/414/2023 before the Additional Sessions Judge, Chandigarh and the same is pending.

Signature Not Verified

Digitally signed by RADHA SHARMA

Date: 2026.02.27 18:47:38 IST

Reason: 1

While admitting the appeal by order dated 05.09.2023, the High Court also allowed the application for suspension of sentence filed by the appellant. However, by order dated 22.07.2025, the Additional Sessions Judge cancelled the bail granted to the appellant due to non-appearance.

Aggrieved, the appellant challenged the order of cancellation before the Punjab and Haryana High Court at Chandigarh through CRM-M No. 64846/2025. The High Court, by the impugned order dated 17.11.2025, disposed of the petition, upholding the order of cancellation. Hence, the present Criminal Appeal.

This Court, by order dated 15.12.2025, issued notice in the instant matter.

“Issue notice to the respondents, returnable on 02.02.2026.

Petitioner’s counsel is also permitted to serve the standing counsel for the first respondent-State.

Petitioner to take steps to deposit 20% of the amount of compensation i.e., Rs.3,00,000/- as ordered by the appellate court vide order dated 05.09.2023 within a period of three weeks from today.

There shall no coercive steps taken as against the petitioner herein till the next date of hearing.”

Heard learned counsel for the appellant and learned counsel for the State and perused the material on record.

Learned counsel for the appellant submitted that by order dated 05.09.2023, the first Appellate Court had granted suspension of sentence and bail to the appellant herein by directing him to deposit 20% of the amount of compensation imposed by the Trial Court within sixty days. However, it was a conditional order that if the deposit was not made in time then the suspension of sentence was to be automatically cancelled; that the deposit could not be made in time owing to a technical error in the making of the demand draft and the bank also did not honour the demand draft. Consequently, the order of suspension of sentence has automatically stood cancelled.

Learned counsel for the appellant submitted that subsequently a sum of Rs.3,00,000/- has been deposited before the Trial court and therefore the order of cancelling the suspension of sentence and grant of bail which has been sustained by the High Court may be set aside and relief may be granted to the appellant herein subject to the terms and conditions that may be imposed.

Per contra, learned counsel for the Union Territory of Chandigarh has submitted on verification that the appellant has indeed deposited a sum of Rs.3,00,000/- in terms of the order granting suspension of sentence in terms of the interim order of this Court dated 15.12.2025 and hence an appropriate order may be made in this appeal.

Considering the facts on record, in our view, the case for suspension of sentence is made out. Ordered accordingly.

It is directed that the appellant shall extend complete cooperati