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        2024 (3) TMI 172 - HC - Indian Laws

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        Deposit condition in cheque dishonour appeal upheld where no exceptional circumstances justified interference with the appellate court's direction. A deposit condition under Section 148 of the Negotiable Instruments Act, 1881 is ordinarily permissible in an appeal against conviction under Section 138, ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            Deposit condition in cheque dishonour appeal upheld where no exceptional circumstances justified interference with the appellate court's direction.

                            A deposit condition under Section 148 of the Negotiable Instruments Act, 1881 is ordinarily permissible in an appeal against conviction under Section 138, as it secures the liability during the appeal. It may be interfered with only where the appellant shows exceptional circumstances making the condition unjust or effectively defeating the right of appeal, and reasons are then expected. On the facts stated, no such exceptional case was shown, so the appellate court's direction to deposit 20% of the compensation amount was upheld and the challenge failed.




                            Issues: Whether the order of the appellate court directing deposit of 20% of the compensation amount while considering suspension of sentence in a cheque dishonour appeal was liable to be quashed for want of separate reasons.

                            Analysis: The statutory scheme under Section 148 of the Negotiable Instruments Act, 1881 permits the appellate court to direct deposit of the prescribed amount while dealing with an appeal against conviction under Section 138. Such a condition is ordinarily justified and is intended to secure the decretal liability during the pendency of appeal. The requirement becomes vulnerable only where the appellant makes out an exceptional case showing that the condition would be unjust or would effectively deprive the right of appeal, and in such a case reasons are expected. On the facts pleaded, no such exceptional circumstance was shown, and the absence of further reasons in the impugned order did not vitiate the direction.

                            Conclusion: The challenge to the deposit condition failed, and the petition for quashing was rightly rejected.

                            Final Conclusion: The appellate court's direction to deposit 20% of the compensation amount was upheld, and the interference sought under Section 482 of the Code of Criminal Procedure, 1973 was declined.

                            Ratio Decidendi: A deposit condition under Section 148 of the Negotiable Instruments Act, 1881 is ordinarily permissible in an appeal against conviction under Section 138, and it can be dispensed with only on a shown exceptional case with recorded reasons.


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                            ActsIncome Tax
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