Statutory pre-deposit under the Negotiable Instruments Act cannot be waived absent special reasons in appeal against conviction.

Section 148 of the Negotiable Instruments Act, 1881 treats pre-deposit as the normal rule in an appeal by a drawer against conviction under Section 138, and waiver is available only in exceptional cases for special reasons. The Punjab and Haryana High Court declined to assess the merits of the conviction while considering exemption and noted that the trial court's findings rested on documentary evidence and admissions concerning business dealings, signatures, and liability. Objections about an excessive cheque amount, a security cheque, financial difficulty, resignation from the firm, and non-compliance with Section 141 were treated as appellate issues and not a basis to avoid the statutory minimum deposit.

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Issues: Whether, in the facts and circumstances, it was a fit case for waiver of the minimum pre-deposit of 20% of the compensation awarded by the trial court in an appeal against conviction under the Negotiable Instruments Act, 1881.

Analysis: Section 148 of the Negotiable Instruments Act, 1881, as amended, makes pre-deposit the general rule in an appeal by the drawer against conviction under Section 138, and waiver is permissible only in exceptional cases on the basis of special reasons. The Court declined to re-appreciate the merits of the conviction at the stage of considering waiver and noted that the trial court had recorded findings based on documentary evidence and admissions regarding business dealings, signatures on relevant documents, and the liability claimed. The objections based on alleged excess cheque amount, alleged security cheque, financial difficulty, resignation from the firm, and non-fulfilment of Section 141 were held to be matters for the appeal and did not justify exemption from the statutory pre-deposit.

Conclusion: Waiver of pre-deposit was not warranted, and the petitioners were not entitled to exemption from the statutory minimum deposit.

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