High Court of Karnataka Allows Revision Petition in NI Act Case Due to Non-Compliance with Section 148 Negotiable Instruments Act, 1881 — Appellate Court Dismissed Appeal Without Considering Merits

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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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).

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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.

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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
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Case Details

2025 LawText (KAR) (07) 19

CRL.RP No. 41 of 2025

2025-07-14

Shivashankar Amarannavar

Sri Vivek Subba Reddy, Senior Advocate for Sri Ranjan Kumar K, Advocate (for petitioner); Sri Naveen Kumar M G, Advocate (for respondent)

Sri Raghavendra K A

Prathap Simha

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Nature of Litigation

Criminal revision petition against appellate judgment dismissing appeal for non-compliance of deposit order under Section 148 NI Act.

Remedy Sought

Petitioner sought to set aside the appellate judgment and the conviction order.

Filing Reason

Appellate court dismissed the appeal without considering merits, solely for non-compliance of deposit order.

Previous Decisions

Trial court convicted petitioner under Section 138 NI Act and sentenced to pay fine of Rs.65,05,000/-. Appellate court dismissed appeal on 22.10.2024.

Issues

Whether the appellate court was justified in dismissing the appeal without considering merits and solely on the ground of non-compliance with the order to deposit 20% of the compensation amount under Section 148 NI Act.

Submissions/Arguments

Not mentioned in the provided text.

Ratio Decidendi

An appellate court under Section 148 NI Act cannot dismiss an appeal solely for non-compliance of the deposit order; it must decide the appeal on its merits.

Judgment Excerpts

The said appeal has not been decided on merits and the same has been dismissed only on the ground that the petitioner has not complied with the order of deposit of 20% of the compensation amount as per Section 148 of the N.I.Act. Therefore, the impugned judgment is set aside and the matter is remitted back to the appellate Court for fresh disposal on merits in accordance with law.

Procedural History

Trial court convicted petitioner under Section 138 NI Act on 29.06.2023 in C.C.No.4165/2019. Petitioner appealed to VI Additional District and Sessions Judge, D.K., Mangaluru in Crl.A.No.263/2023, which was dismissed on 22.10.2024. Petitioner then filed criminal revision petition No.41/2025 before the High Court of Karnataka.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138, 148
  • Code of Criminal Procedure, 1973 (Cr.P.C.): 397(1), 401
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