Section 148 applies to pending cheque dishonour appeals; deposit condition while suspending sentence was upheld.

Section 148 of the Negotiable Instruments Act, 1881 applies on a purposive construction to pending appeals against conviction under Section 138, even where the complaint was filed before the amendment came into force, because the amendment was intended to curb delay and protect the payee's entitlement. The appellate court is competent to direct deposit of the prescribed minimum amount as a condition while considering suspension of sentence in a cheque dishonour appeal. The condition imposed in this matter was therefore upheld, subject only to correction of the wording from "cheque amount" to "compensation".

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Issues: Whether the amended provision empowering the appellate court to direct deposit of a minimum percentage of the fine or compensation applies to an appeal against conviction under Section 138 of the Negotiable Instruments Act, 1881 even where the complaint was filed before the amendment came into force, and whether the condition of deposit imposed while suspending sentence was lawful.

Analysis: The application challenged the appellate court's order suspending conviction and sentence in a cheque dishonour appeal subject to deposit of 30% of the cheque amount. The judgment holds that the amendment inserting Section 148 was enacted to curb delay in cheque dishonour litigation and to protect the payee's entitlement, and that its purpose would be frustrated if confined only to complaints filed after the commencement date. On a purposive construction, the provision was treated as applicable to pending appeals arising from convictions under Section 138, even where the complaint had been instituted earlier. The Court further held that the appellate court was competent to impose a deposit condition while considering suspension of sentence, though the operative order required correction of the terminology from "cheque amount" to "compensation".

Conclusion: The deposit condition was upheld and the challenge to the appellate court's order failed, with only a limited modification in the wording of the condition.

Ratio Decidendi: Section 148 of the Negotiable Instruments Act, 1881 applies to pending appeals against conviction under Section 138 on a purposive interpretation, and the appellate court may require deposit of not less than the prescribed minimum of the fine or compensation as a condition while dealing with suspension of sentence.

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