Section 148 applies to pending cheque dishonour appeals, and breach of a deposit condition can vacate suspension of sentence.

Amended Section 148 of the Negotiable Instruments Act, 1881 applies to pending appeals against conviction under Section 138, even where the complaints were filed before the amendment, because the provision operates at the appellate stage and does not take away the substantive right of appeal. The provision was intended to curb delay in cheque dishonour litigation and permit deposit of a minimum portion of fine or compensation during appeal. Where suspension of sentence was made conditional on deposit of 25% of the compensation amount, non-compliance justified the appellate court in treating the suspension as vacated, and the challenge to that course failed.

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Issues: (i) Whether amended Section 148 of the Negotiable Instruments Act, 1881 applies to appeals against conviction for offences under Section 138 of the Negotiable Instruments Act, 1881 even where the complaints were filed before the amendment; (ii) Whether non-deposit of the amount directed as a condition for suspension of sentence results in vacation of the suspension order.

Issue (i): Whether amended Section 148 of the Negotiable Instruments Act, 1881 applies to appeals against conviction for offences under Section 138 of the Negotiable Instruments Act, 1881 even where the complaints were filed before the amendment.

Analysis: The amended provision was brought into force while the appeals against conviction were pending. The statutory object was to curb delay in cheque dishonour litigation and to ensure that an appellate court could require deposit of a minimum portion of the fine or compensation during the pendency of appeal. The provision was treated as applicable at the appellate stage and as operating on pending appeals, since it did not take away the substantive right of appeal. The decision distinguishing interim compensation under Section 143A did not govern this post-conviction appellate provision.

Conclusion: Yes. Amended Section 148 of the Negotiable Instruments Act, 1881 applies to pending appeals against conviction under Section 138, including cases where the complaints were filed before 01.09.2018.

Issue (ii): Whether non-deposit of the amount directed as a condition for suspension of sentence results in vacation of the suspension order.

Analysis: The suspension of sentence was expressly made conditional upon deposit of 25% of the compensation amount. Once the condition was not complied with, the appellate court that granted suspension was competent to treat the suspension as vacated. The court's power to act on breach of the condition was not displaced, and non-compliance had direct consequences for the continuance of the interim protection.

Conclusion: Yes. Non-compliance with the condition justified treating the suspension of sentence as vacated.

Final Conclusion: The challenge to the conditional suspension order and the subsequent order treating the suspension as vacated failed, and the appeals were dismissed.

Ratio Decidendi: Amended Section 148 of the Negotiable Instruments Act, 1881 applies to pending appeals against conviction under Section 138, and breach of a valid condition attached to suspension of sentence permits the appellate court to treat the suspension as vacated.

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