Case Note & Summary
The petitioner, Sri Raghavendra K A, was convicted by the JMFC IV Court, Mangaluru in C.C.No.4165/2019 for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 and sentenced to pay a fine of Rs.65,05,000/- with a default sentence of six months simple imprisonment. Aggrieved, he filed an appeal before the VI Additional District and Sessions Judge, D.K., Mangaluru in Crl.A.No.263/2023. The appellate court, however, dismissed the appeal on 22.10.2024 without considering the merits, solely on the ground that the petitioner had not complied with the order to deposit 20% of the compensation amount as required under Section 148 of the NI Act. The petitioner then filed the present criminal revision petition under Section 397(1) read with Section 401 Cr.P.C. before the High Court of Karnataka. The High Court observed that the appellate court had not decided the appeal on merits and had dismissed it only for non-compliance of the deposit order. The Court held that such dismissal was improper and that the appeal ought to have been heard on its merits. Consequently, the High Court allowed the revision petition, set aside the appellate judgment, and remanded the matter back to the appellate court for fresh disposal on merits, in accordance with law. The Court directed the parties to appear before the appellate court on 11.08.2025.
Headnote
A) Criminal Procedure - Revision - Section 397(1) read with Section 401 Cr.P.C. - Maintainability - Revision petition against appellate judgment dismissing appeal for non-compliance of deposit order under Section 148 NI Act - Held that the appellate court ought to have decided the appeal on merits and not dismissed it solely for non-deposit - Revision allowed and matter remanded (Paras 2-3). B) Negotiable Instruments Act - Dishonour of Cheque - Section 138 read with Section 148 - Deposit of compensation - Appellate court's power to direct deposit - Non-compliance leading to dismissal of appeal - Held that dismissal without considering merits is improper - Appeal must be heard on merits (Paras 2-3).
Issue of Consideration
Whether the appellate court was justified in dismissing the appeal without considering the merits and solely on the ground of non-compliance with the order to deposit 20% of the compensation amount under Section 148 of the Negotiable Instruments Act, 1881.
Final Decision
The High Court allowed the criminal revision petition, set aside the judgment dated 22.10.2024 passed in Crl.A.No.263/2023 by the VI Additional District and Sessions Judge, D.K., Mangaluru, and remanded the matter back to the appellate court for fresh disposal on merits in accordance with law. The parties were directed to appear before the appellate court on 11.08.2025.
Law Points
- Section 148 NI Act mandatory deposit
- appellate court must decide appeal on merits
- revision against dismissal without merits
- criminal revision maintainable



