Section 148 deposit requirement upheld for cheque dishonour appeals; appellate courts may order 20% deposit to prevent delay.

In an appeal against conviction under Section 138 of the Negotiable Instruments Act, Section 148 authorises the appellate court to require deposit of at least 20% of the fine or compensation awarded, and that power must be applied purposively to curb delay in cheque dishonour litigation. The Court held that the provision can also apply to pending appeals arising from complaints filed before the amendment because no vested substantive right of appeal is taken away. The condition imposed for suspension of sentence was therefore consistent with the statutory scheme, and the challenge to the deposit direction failed.

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Issues: Whether the condition imposed by the appellate court requiring deposit of 20% of the compensation or fine amount while suspending sentence in an appeal under the Negotiable Instruments Act was legally sustainable, including the applicability and interpretation of Section 148 of the Negotiable Instruments Act, 1881.

Analysis: Section 143-A and Section 148 of the Negotiable Instruments Act, 1881 were introduced with a non obstante clause to deal with delay in cheque dishonour cases and to provide interim relief to the payee. Section 148 empowers the appellate court, in an appeal against conviction under Section 138, to direct deposit of a minimum of 20% of the fine or compensation awarded by the trial court. The provision is intended to operate purposively so that the object of speedy disposal and deterrence against dilatory tactics is achieved. The Court relied on the settled interpretation that the power under Section 148 is to be exercised in accordance with the legislative intent and that the amendment applies even to appeals arising from complaints filed before the amendment, since no vested substantive right of appeal is taken away. The condition imposed for suspension of sentence was therefore treated as consistent with the statutory scheme.

Conclusion: The condition directing deposit of 20% of the compensation amount was upheld and the challenge to it failed.

Final Conclusion: The petition was dismissed, and the appellate court's direction requiring deposit of the statutory percentage of the awarded amount was left undisturbed.

Ratio Decidendi: In an appeal against conviction under Section 138 of the Negotiable Instruments Act, 1881, Section 148 empowers the appellate court to require deposit of at least 20% of the fine or compensation, and the provision is to be applied purposively, including to pending appeals, to advance the object of preventing delay in cheque dishonour litigation.

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