TaxTMI 
TaxTMI 
2021 (12) TMI 68
X X X X Extracts X X X X
X X X X Extracts X X X X
....e from firm for the goods supplied, a cheque was issued under the signatures of Manjit Kaur, Partner of firm. On presentation, the cheque was dishonoured due to insufficient funds. After serving the legal notice, complaint under Section 138 of the Act was filed. Vide judgment dated 3rd March, 2020, the accused were convicted under Section 138 of the Act. Vide order dated 8th October, 2020, Simarpal Singh Wadhawan, Sarabjeet Singh Wadhawan and Manjit Kaur were sentenced to undergo simple imprisonment for one year and the accused were directed to pay compensation of Rs. 1,05,00,000/-. [3] Aggrieved of the conviction, appeals were filed alongwith applications for suspension of sentence with the prayer for waiver of condition of pre-deposit. Vide order dated 6th January, 2021, sentence was suspended subject to furnishing bail bonds of Rs. 1,00,000/- and making pre-deposit of 20% of the compensation amount within a period of one month. [4] Revision Petitions were filed against the orders of pre-deposit. This Court on 1st October, 2021, set aside the impugned orders and the matter was remanded back to be decided afresh in view of decision of the Supreme Court in Surinder Singh Deswal @....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rocedure, 1973 (2 of 1974), in an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of twenty per cent. of the fine or compensation awarded by the trial Court: Provided that the amount payable under this subsection shall be in addition to any interim compensation paid by the appellant under section 143A. (2) The amount referred to in sub-section (1) shall be deposited within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the appellant. (3) The Appellate Court may direct the release of the amount deposited by the appellant to the complainant at any time during the pendency of the appeal: Provided that if the appellant is acquitted, the Court shall direct the complainant to repay to the appellant the amount so released, with interest at the bank rate as published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year, within sixty days from the date of the order, or within such further period not exceeding thirty days as may be direct....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... notes. The trial Court noted the fact that exhibits C27 to C29 i.e. 'balance confirmation' had signatures of Sarabjeet Singh Wadhawan. DW-1 Sarabjeet Singh Wadhawan in his deposition stated that he used to look after the day-to-day affairs of firm in which his wife Manjit Kaur and son Simarpal Singh Wadhawan were partners. He admitted his signatures on balance confirmation and the fact that on the interest paid, tax was deducted at source as per provisions of the Income Tax Act, 1961 and there was 'interest rate settlement' of 30% on the delayed payment. From his deposition, it revealed that payment of Rs. 25,000/- through R.T.G.S. was made to complainant on 5th July, 2017 and it was settled between the parties to pay the amount in installments of Rs. 1,50,000/- and 80-90 cheques were issued for the payment of installments. The Income Tax Return ('ITR') of the complainant for the Assessment Year 2018-19 was exhibited showing firm as sundry debtors to the tune of Rs. 70,09,773/-. In the cross-examination, DW-2, Simrapal Singh Wadhawan deposed that presently there were two partners in firm i.e. Sarabjeet Singh Wadhawan and Manjit Kaur, earlier he was partner ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (i) to insert a new section 143A in the said Act to provide that the Court trying an offence under section 138, may order the drawer of the cheque to pay interim compensation to the complainant, in a summary trial or a summons case, where he pleads not guilty to the accusation made in the complaint; and in any other case, upon framing of charge. The interim compensation so payable shall be such sum not exceeding twenty per cent of the amount of the cheque; and (ii) to insert a new section 148 in the said Act so as to provide that in an appeal by the drawer against conviction under Section 138, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of twenty per cent of the fine or compensation awarded by the trial court. 4. The Bill seeks to achieve the above objectives." [14] It is settled law that general rule under Section 148 of the Act is of pre-deposit and waiver is only an exception for which special reasons need to be assigned. [15] It would not be appropriate to pre-judge the appeal at the stage of deciding the waiver of pre-deposit. The petitioners have filed Criminal Miscellaneous Applications annexing their bank account statemen....