Cash deposit condition may be replaced by bank guarantee where financial difficulty justifies modified compliance.

The High Court modified a cash deposit condition attached to hearing of an appeal after the petitioner showed financial difficulty and offered part payment in cash with a bank guarantee for the balance, which the respondent did not oppose. It held that the original condition could be substituted in these circumstances, permitting a cash deposit of Rs. 30,000 and a bank guarantee of Rs. 50,000. The order dismissing the appeal for non-compliance with the original cash deposit requirement was quashed, and the appeal was directed to be restored for decision in accordance with law.

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Issues: Whether the cash deposit condition for hearing of the appeal could be modified to permit part payment in cash and the balance by bank guarantee, and whether the order dismissing the appeal for non-compliance with the deposit condition was liable to be quashed.

Analysis: The parties agreed that the writ petition could be finally disposed of at the admission stage. The petitioner was unable to make the entire deposit in cash due to financial difficulty, but was ready to deposit part of the amount in cash and furnish a bank guarantee for the balance. The respondent did not object to this course. In these circumstances, the deposit condition was modified to allow a cash deposit of Rs. 30,000 and a bank guarantee of Rs. 50,000, and the dismissal of the appeal for non-compliance with the original cash deposit condition was set aside.

Conclusion: The Court permitted substitution of part of the cash deposit by bank guarantee, quashed the dismissal order, and directed restoration of the appeal for decision in accordance with law.

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