Published on: January 19, 2024 at 22:36 IST
Court: Supreme Court of India
Citation: Jamboo Bhandari v. M.P. SIDC Ltd. (2023)
Honourable Supreme Court of India has held that condition of deposit of 20% of the amount in accordance to Section 148 of the Negotiable Instruments Act, 1881 can be relaxed in exceptional circumstances. It is held that a Superior Appellate Court can consider suspension of sentence under Section 389 of the Code of Criminal Procedure, 1973 for a person who is convicted for offence under Section 138 of the Negotiable Instruments Act, 1881 without hard and fast requirements of 20% based on reasoned order.
6. What is held by this Court is that a purposive interpretation should be made of Section 148 NI Act. Hence, normally, the appellate court will be justified in imposing the condition of deposit as provided in Section 148. However, in a case where the appellate court is satisfied that the condition of deposit of 20% will be unjust or imposing such a condition will amount to deprivation of the right of appeal of the appellant, exception can be made for the reasons specifically recorded.
7. Therefore, when the appellate court considers the prayer under Section 389CrPC of an accused who has been convicted for offence under Section 138 NI Act, it is always open for the appellate court to consider whether it is an exceptional case which warrants grant of suspension of sentence without imposing the condition of deposit of 20% of the fine/compensation amount. As stated earlier, if the appellate court comes to the conclusion that it is an exceptional case, the reasons for coming to the said conclusion must be recorded.
Drafted By Abhijit Mishra