Section 148 NI Act deposit requirement applies to pending Section 138 appeals; 20% compensation deposit upheld

Section 148 of the Negotiable Instruments Act, 1881, as amended, applies to appeals against conviction under Section 138 even where the complaint was filed before the amendment. The appellate court is empowered to direct a minimum deposit of 20% of the fine or compensation pending appeal, and such direction is ordinarily the rule unless special reasons justify departure. On this construction, the order requiring deposit of 20% of the compensation was upheld, and the challenge under Section 482 of the Code of Criminal Procedure, 1973 failed.

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Issues: Whether the order directing the convicted accused to deposit 20% of the compensation under Section 148 of the Negotiable Instruments Act, 1881, was illegal or unwarranted.

Analysis: The order was examined in the light of Section 148 of the Negotiable Instruments Act, 1881, as amended, and the Supreme Court's interpretation that the provision applies to appeals against conviction under Section 138 even where the complaint was filed before the amendment. The amended provision was construed purposively so that the appellate court may direct deposit of a sum not less than 20% of the fine or compensation, and such direction is ordinarily to be treated as the rule, with departure only for special reasons.

Conclusion: The impugned direction to deposit 20% of the compensation was held to be valid, and the challenge under Section 482 of the Code of Criminal Procedure, 1973 failed.

Ratio Decidendi: Section 148 of the Negotiable Instruments Act, 1881, as amended, applies to pending appeals against conviction under Section 138 and authorises the appellate court to direct a minimum deposit of 20% of the fine or compensation pending appeal.

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