TaxTMI 
TaxTMI 
TaxTMI 
2022 (6) TMI 1306
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....ognizance of the offence on 7-02-2011 and registers criminal case in C.C.No.26468 of 2011. The respondent/accused was convicted and sentenced in terms of the order of the learned Magistrate dated 11-06-2018. The accused filed an appeal before the learned Sessions Judge in Criminal Appeal No.25120 of 2018. The learned Sessions Judge while directing suspension of sentence and staying conviction ordered deposit of 10% of the amount determined by the learned Magistrate. The order was passed on 23-12-2019. By then, the amendment to Section 148 of the Act had come in place where the accused was to deposit 20% of fine or compensation awarded by the trial Court. The petitioner herein filed his objections to the application seeking suspension of sentence and deposit of only 10% of the amount awarded. This is rejected in the impugned order. It is this order dated 23-12-2019 that is called in question in the subject petition, insofar it directs deposit of only 10% of the amount contrary to the statutorily prescribed minimum of 20% in terms of Section 148 of the Act. 4. The petitioner would contend with vehemence that Section 148 of the Act though was amended on 01-09-2018 has retrospective e....
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....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 directed by the Court on sufficient cause being shown by the complainant." The section directs that when an appeal is filed by the drawer of cheque under Section 138, the Appellate Court may order such sum which shall be minimum of 20% of the fine or compensation awarded by the trial Court. This is in addition to whatever interim compensation the complainant would be ordered to be entitled to under Section 143A. The said deposit is to be made within 60 days from the date of the order or within a further period not exceeding 30 days as may be directed by the Court on sufficient cause being shown by the appellant and the appellate Court after receipt of such deposit may direct release of the amount deposited by the appellant to the complainant at any time during the pendency of the appeal. If the accused is acquitted, the complainant will have to repay the amount so taken in terms of sub-section (3) of Section 148 of the Act and that shall be refunded within 60 days from the date of the order or within such period not exceeding 30 days as may b....
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....tive need not detain this Court for long or delve deep into the matter. The Apex Court in the case of SURINDER SINGH DESWAL v. VIRENDER GANDHI (2019) 11 SCC 341 has held as follows: "6.1. The short question which is posed for consideration before this Court is, whether the first appellate court is justified in directing the appellantoriginal accused who have been convicted for the offence under Section 138 of the NI Act to deposit 25% of the amount of compensation/fine imposed by the learned trial court, pending appeals challenging the order of conviction and sentence and while suspending the sentence under Section 389 CrPC, considering Section 148 of the NI Act as amended? 6.2. While considering the aforesaid issue/question, the Statement of Objects and Reasons of the amendment in Section 148 of the NI Act, as amended by way of Amendment Act 20 of 2018 and Section 148 of the NI Act as amended, are required to be referred to and considered, which read as under: "The Negotiable Instruments Act, 1881 (the Act) was enacted to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques. The said Act has been amended from time to time so as to provid....
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.... 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 sub-section shall be in addition to any interim compensation paid by the appellant under Section 143-A. (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 directed by the Court on sufficient cause being shown by the complainant." 7. It is the case on behalf of the appellant....
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....al has been taken away and/or affected. Therefore the decisions of this Court in Garikapati Veeraya [Garikapati Veeraya v. N. Subbiah Choudhry, AIR 1957 SC 540] and Videocon International Ltd. [Videocon International Ltd. v. SEBI, (2015) 4 SCC 33] , relied upon by the learned Senior Counsel appearing on behalf of the appellants shall not be applicable to the facts of the case on hand. Therefore, considering the Statement of Objects and Reasons of the amendment in Section 148 of the NI Act stated hereinabove, on purposive interpretation of Section 148 of the NI Act as amended, we are of the opinion that Section 148 of the NI Act as amended, shall be applicable in respect of the appeals against the order of conviction and sentence for the offence under Section 138 of the NI Act, even in a case where the criminal complaints for the offence under Section 138 of the NI Act were filed prior to Amendment Act 20 of 2018 i.e. prior to 1-9- 2018. If such a purposive interpretation is not adopted, in that case, the object and purpose of amendment in Section 148 of the NI Act would be frustrated. Therefore, as such, no error has been committed by the learned first appellate court directing the....
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....f cases relating to the offence of the dishonour of cheques. So as to see that due to delay tactics by the unscrupulous drawers of the dishonoured cheques due to easy filing of the appeals and obtaining stay in the proceedings, an injustice was caused to the payee of a dishonoured cheque who has to spend considerable time and resources in the court proceedings to realise the value of the cheque and having observed that such delay has compromised the sanctity of the cheque transactions, Parliament has thought it fit to amend Section 148 of the NI Act. Therefore, such a purposive interpretation would be in furtherance of the Objects and Reasons of the amendment in Section 148 of the NI Act and also Section 138 of the NI Act. 9. Now so far as the submission on behalf of the appellants, relying upon Section 357(2) CrPC that once the appeal against the order of conviction is preferred, fine is not recoverable pending appeal and therefore such an order of deposit of 25% of the fine ought not to have been passed and in support of the above reliance placed upon the decision of this Court in Dilip S. Dahanukar [Dilip S. Dahanukar v. Kotak Mahindra Co. Ltd., (2007) 6 SCC 528 : (2007) 3 SCC....