Case Note & Summary
The High Court of Judicature at Bombay considered two writ petitions filed under Article 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, challenging an order passed by the Sessions Court directing the petitioners to deposit 20% of compensation under Section 148 of the Negotiable Instruments Act, 1881. The petitioners had been convicted under Section 138 of the Negotiable Instruments Act in two complaint cases by judgment dated 5 June 2018. Their appeals were filed on 11 June 2018, and on 14 June 2018 the appellate court granted bail and suspended the sentence, requiring personal bonds of Rs. 25,000 each. Subsequently, the complainant respondent filed an application under Section 148 of the Negotiable Instruments Act on 20 March 2019, seeking deposit of 50% of the cheque amount as interim compensation. The petitioners contested maintainability on grounds that the complaints were filed before the 2018 Amendment Act which came into force on 1 September 2018, sentence was suspended earlier, and the appellate court had not ordered deposit at the time of bail. The Sessions Court, by order dated 1 August 2019, directed deposit of 20% compensation within sixty days. The petitioners filed writ petitions challenging this order. The High Court relied on the Supreme Court decision in Surinder Singh Deswal v. Virender Gandhi, (2019) 11 SCC 341, which held that amended Section 148 applies to appeals filed before the amendment and empowers the appellate court to direct deposit of minimum 20% of fine or compensation on application by complainant or accused. The court held that the complainant's application was perfectly maintainable and found no reason to interfere in supervisory jurisdiction. Consequently, the writ petitions were dismissed, rule discharged, and all interim orders vacated.
Headnote
A) Negotiable Instruments - Interim Compensation Pending Appeal - Amended Section 148 Applies Retrospectively to Appeals Filed Before Amendment - Negotiable Instruments Act, 1881, Section 148 - Petitioner challenged application by complainant for deposit of 50% compensation arguing complaints filed before 1 September 2018 amendment and sentence suspended earlier; High Court relied on Surinder Singh Deswal v. Virender Gandhi and held amended Section 148 confers power on appellate court to direct deposit minimum 20% fine or compensation, application maintainable - Held that purposive interpretation serves objectives of speedy disposal and prevents delay tactics (Paras 6-7).
B) Constitution of India - Supervisory Jurisdiction - Article 227 and Section 482 CrPC - Interference with Sessions Court order directing deposit of 20% compensation - High Court found no reason to interfere in supervisory jurisdiction because the order was legally sustainable under amended Section 148; application by complainant was maintainable even though bail granted earlier - Held that petitions dismissed, rule discharged, interim orders vacated (Para 7).
Issue of Consideration
Whether amended Section 148 of the Negotiable Instruments Act, 1881, which came into force on 1 September 2018, applies to appeals filed before that date and whether an application by the complainant for interim compensation is maintainable.
Final Decision
Writ petitions dismissed; rule discharged; all interim orders vacated. The Sessions Court order directing deposit of 20% compensation within 60 days was upheld as legally sustainable. Amended Section 148 NI Act applied to appeals filed before 1 September 2018; complainant's application for interim compensation was maintainable.
Law Points
- Amended Section 148 of Negotiable Instruments Act
- 1881 applies to appeals filed before 1 September 2018
- Appellate court can direct deposit of minimum 20% of fine or compensation on application by complainant or accused
- Deposit to be made within 60 days or further 30 days for sufficient cause
- Purposive interpretation to prevent delay tactics and protect sanctity of cheque transactions
- Complainant's application under Section 148 maintainable even if bail granted earlier.
Case Details
2021 LawText (BOM) (09) 98
Writ Petition No. 4636 of 2019 along with Writ Petition No. 4637 of 2019
Akhil Kurade, Majoj Harit, Pankaj Jain, A.R. Patil
Navneet Singh Gogia and Anr.
Rahul C. Chandak Through C.A. Mr. Brijballabh Chandak and Anr. in WP 4636/2019; Sushma B. Chandak Through C.A. Mr. Brijballabh Chandak and Anr. in WP 4637/2019
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Nature of Litigation
Writ petitions under Article 227 of Constitution of India read with Section 482 of Code of Criminal Procedure, 1973 challenging Sessions Court order directing deposit of 20% compensation under Section 148 of Negotiable Instruments Act, 1881.
Remedy Sought
Petitioners sought quashing/setting aside of Sessions Court order dated 1 August 2019 directing them to deposit 20% of compensation within 60 days, claiming application under Section 148 was not maintainable.
Filing Reason
Respondent complainant filed application under Section 148 NI Act seeking interim compensation; Sessions Court allowed and directed deposit; petitioners challenged on ground that appeal was filed and sentence suspended before 2018 Amendment came into force.
Previous Decisions
Trial Court convicted petitioners under Section 138 NI Act on 5 June 2018; Appellate Court granted bail and suspended sentence on 14 June 2018; Sessions Court vide order dated 1 August 2019 directed deposit of 20% compensation.
Issues
Whether amended Section 148 of the Negotiable Instruments Act, 1881, which came into force on 1 September 2018, applies to appeals filed before that date and whether an application by the complainant for interim compensation is maintainable.
Whether the Sessions Court order directing deposit of 20% compensation was legally sustainable and warranted interference under Article 227 of the Constitution and Section 482 CrPC.
Submissions/Arguments
Petitioners argued that complaints were filed prior to 1 September 2018 when amendment act no. 20/2018 came into effect; sentence was suspended on 14 June 2018 prior to amendment; appellate court had power to order deposit but did not; complainant had no ground for reconsideration of bail order.
Complainant/Respondent contended that under amended Section 148, appellate court can direct deposit of minimum 20% fine or compensation either on application of complainant or accused, and application was maintainable.
Petitioners relied on the principle that amendment should not apply retrospectively; however, Supreme Court in Surinder Singh Deswal held otherwise.
Ratio Decidendi
Amended Section 148 of the Negotiable Instruments Act, 1881 applies to appeals against conviction under Section 138 filed before the 2018 Amendment came into force. The appellate court has power to direct appellant-accused to deposit minimum 20% of fine or compensation on an application by the original complainant or even on accused's application under Section 389 CrPC. Purposive interpretation is required to prevent delay tactics and protect sanctity of cheque transactions.
Judgment Excerpts
amended Section 148 of the N.I. Act confers power upon the appellate court to pass an order pending appeal to direct the appellant-accused to deposit the sum which shall not be less than 20% of the fine or compensation either on an application filed by the original complainant or even on the application filed by the appellant-accused under Section 389 of the Cr.P.C. to suspend the sentence.
Therefore, application moved by the Complainant on 29 th September, 2019 under Section 148 claiming interim compensation was perfectly maintainable.
Procedural History
Trial Court convicted petitioners under Section 138 NI Act in two complaint cases on 5 June 2018. Appeals filed on 11 June 2018. Appellate Court granted bail and suspended sentence on 14 June 2018. Complainant filed application under Section 148 NI Act on 20 March 2019 (though court later mentions 29 September 2019, inconsistency noted in judgment). Sessions Court allowed application on 1 August 2019 directing deposit 20% compensation within 60 days. Petitioners filed writ petitions challenging the order; High Court dismissed petitions on 30 September 2021.
Acts & Sections
- Negotiable Instruments Act, 1881: 138, 148
- Code of Criminal Procedure, 1973: 389, 482
- Constitution of India: Article 227
