Pre-deposit waiver under the Negotiable Instruments Act may be reconsidered where deposit would unjustly curtail the right of appeal.

Section 148 of the Negotiable Instruments Act ordinarily permits an appellate court to impose a deposit condition, but an exception may be made where insisting on pre-deposit would be unjust or would effectively deprive the appellant of the right of appeal, provided reasons are recorded. Applying that principle, the appellant was allowed to advance arguments on the waiver application that had been rejected earlier. The impugned order was set aside and the Sessions Court was directed to reconsider the waiver application in accordance with law and the observations made.

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Issues: Whether the appellant's request for waiver of pre-deposit under Section 148 of the Negotiable Instruments Act required reconsideration in light of the governing principles on deposit conditions and exceptions thereto.

Analysis: The Court noted that Section 148 ordinarily justifies imposition of a deposit condition at the appellate stage, but recognised that an exception may be made where insisting on deposit would be unjust or would effectively deprive the appellant of the right of appeal, provided reasons are recorded. In view of the cited precedent, the appellant was permitted to advance arguments on the waiver application that had been rejected by the Appellate Court and affirmed by the High Court.

Conclusion: The impugned order was set aside and the Sessions Court was directed to reconsider the waiver application in accordance with the observations made and in accordance with law.

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