Appellate power to require deposit of compensation in cheque dishonour appeals is confirmed by Section 148.

In appeals against conviction under Section 138 of the Negotiable Instruments Act, an appellate court may suspend sentence on terms requiring deposit of fine or compensation. The legal position recognised that this power existed under the appellate court's authority to impose appropriate conditions, including in cheque dishonour matters, and that compensation awarded under Section 357(3) of the Code of Criminal Procedure could also be addressed in appeal. Section 148 of the Negotiable Instruments Act was treated as an express confirmation of that power, operating purposively during the pendency of such appeals. A direction to deposit 50% of the compensation amount was therefore within jurisdiction.

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Issues: Whether the appellate court could, while suspending the sentence in an appeal arising from conviction under Section 138 of the Negotiable Instruments Act, 1881, direct deposit of a part of the compensation amount as a condition, and whether such power stood reinforced by Section 148 of the Negotiable Instruments Act, 1881.

Analysis: The appeal turned on the interplay between the appellate power under Section 389 of the Code of Criminal Procedure, 1973, the compensation regime under Section 357 of the Code of Criminal Procedure, 1973, and the later insertion of Section 148 in the Negotiable Instruments Act, 1881. The legal position noticed was that even before Section 148, appellate courts could impose appropriate terms while suspending sentence, including requiring deposit of fine or compensation in cheque dishonour matters, and that compensation awarded under Section 357(3) was also capable of being dealt with in appeal. The later amendment under Section 148 was treated as an express confirmation of that power, intended to operate purposively in appeals against conviction under Section 138, and the court noted that the condition to deposit was not beyond jurisdiction.

Conclusion: The condition directing deposit of 50% of the compensation amount was held to be within the appellate court's power and the challenge to that condition failed.

Ratio Decidendi: In an appeal against conviction under Section 138 of the Negotiable Instruments Act, 1881, the appellate court may impose a condition to deposit fine or compensation, and Section 148 expressly authorises such a direction during the pendency of appeal.

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