Deposit conditions in cheque dishonour appeals require reasons and consideration of exceptional circumstances before insisting on the statutory minimum.

In cheque dishonour appeals, an application to suspend sentence under Section 389 CrPC must be considered alongside the deposit regime under Section 148 of the Negotiable Instruments Act. An appellate court may ordinarily impose a deposit condition, but if it insists on the statutory minimum or refuses waiver, it must consider whether the case is exceptional and record reasons for that choice. A blanket direction to deposit 20% of the fine or compensation without such reasoning is an improper exercise of discretion and cannot stand; the matter may be remitted for fresh consideration of the suspension application.

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Issues: Whether the order suspending sentence could require deposit of 20% of the fine or compensation without recording reasons and without considering whether the case fell within an exception.

Analysis: The application for suspension of sentence under Section 389 of the Code of Criminal Procedure, 1973 in a prosecution under Section 138 of the Negotiable Instruments Act, 1881 must be considered in the light of the statutory discretion recognised under Section 148 of the Negotiable Instruments Act, 1881. The appellate court may ordinarily impose a deposit condition, but if it declines to waive the deposit or insists on the statutory minimum, it must apply its mind to whether the case is exceptional and must record reasons for the choice made. A blanket direction without such reasoning does not disclose proper exercise of discretion.

Conclusion: The condition requiring deposit of 20% of the amount was unsustainable for want of reasons and for failure to consider the exception, and that part of the order was set aside.

Final Conclusion: The matter was sent back for fresh consideration of the suspension applications, and the petitioner obtained relief against the impugned deposit condition.

Ratio Decidendi: While dealing with suspension of sentence in a cheque dishonour appeal, the appellate court must exercise its discretion under the statutory deposit regime by recording reasons and considering whether the case warrants departure from the ordinary minimum deposit condition.

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