2023 (7) TMI 1057 - HC - Indian Laws

Court clarifies deposit condition under NI Act, upholds suspension of sentence

The Court dismissed the Criminal Original Petitions after clarifying that the petitioner misunderstood the order under Section 148, not 143A, of the NI ... Dishonour of Cheque - suspense of sentence subject to deposit of 20% of cheque amount - contention of the petitioner is that the Trial Court had not properly considered the evidence in its proper perspective - HELD THAT:- It is seen that the petitioner has filed these petitions on a wrong notion that the order passed by the Principal Sessions Judge, Erode, is under Section 143A of NI Act. Section 143A of NI Act provides power to direct interim compensation at the stage of trial on sufficient cause being shown by the drawer of the cheque. In Sub-section (2) of Section 143A of NI Act, it is clear that the interim compensation under sub-section (1) shall not exceed 20% of the amount of the cheque. Under Sub-section (1) of Section 148 of NI Act, it is the Appellate Court may order the appellant to deposit minimum of 20% of the fine or compensation awarded by the Trial Court. At the stage of trial, interim compensation shall not exceed 20% of the amount of the cheque on sufficient cause being shown by the drawer of the cheque and on the other hand, in the appellate stage this 20% is the minimum amount to be deposited as interim compensation and the condition of sufficient cause is not provided for the reason that the accused after trial, convicted by the Trial court and on conviction, prefers the appeal. This being so, the petitioner doubting the order of the learned Sessions Judge and camouflaging the same to be an order under Section 143A of NI Act is not proper and sustainable. Petition dismissed. Issues: The judgment involves issues related to the conviction of the petitioner in two cases under Section 138 of the Negotiable Instruments Act, the suspension of sentence imposed on the petitioner, and the interpretation of Sections 143A and 148 of the NI Act.Conviction and Appeals: The petitioner was convicted in two cases and sentenced to three months simple imprisonment in each case along with compensation amounts. The petitioner filed appeals against these convictions and also submitted petitions for suspension of sentence. The Principal Sessions Judge suspended the sentence with a condition for the petitioner to deposit 20% of the cheque amount within 30 days. The petitioner contended that the Trial Court did not properly consider the evidence and that the liability was disputed from the beginning. The petitioner argued that the condition of depositing 20% without reason was incorrect, citing relevant case laws.Respondent's Arguments: The respondent argued that Section 143A of the NI Act applies at the conclusion of the trial and provides for interim compensation. As the trial was completed, the petitioner's invocation of Section 143A was incorrect. The respondent highlighted that the order to deposit 20% was in line with Section 148 of the NI Act, which is the power of the Appellate Court. The respondent emphasized that the petitioner had not complied with the condition for eight months and referred to a Supreme Court case supporting the order passed by the Sessions Court.Judgment and Interpretation: The Court noted that the petitioner misunderstood the order as being under Section 143A of the NI Act when it was actually under Section 148. Section 143A allows for interim compensation during the trial, not at the appellate stage. The Court clarified that at the trial stage, interim compensation cannot exceed 20% of the cheque amount, while at the appellate stage, 20% is the minimum to be deposited. The Court found no merit in the petitioner's petitions and dismissed them based on the proper interpretation of the relevant sections of the NI Act.Conclusion: The Court dismissed the Criminal Original Petitions after considering the arguments and interpreting the provisions of the NI Act, concluding that the petitioner's misunderstanding of the order and attempt to portray it as under Section 143A was not sustainable.