Bombay High Court Quashes Condition of Pre-Deposit in NI Act Appeal — Suspension of Sentence Cannot Be Conditional on Deposit of Compensation Without Hearing on Merits. The appellate court's direction to deposit Rs. 2,00,000/- as a condition for suspension of sentence under Section 389 Cr.P.C. was set aside as illegal and premature.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The applicant, Rahul Kisan Khande, was convicted under Section 138 of the Negotiable Instruments Act, 1881 by the learned Magistrate, First Class, Rahata, in Summary Criminal Case No. 1294 of 2015. The Magistrate sentenced him to one year simple imprisonment and directed him to deposit Rs. 6,50,000/- as compensation under Section 357 Cr.P.C. The applicant appealed against this conviction and sentence before the Additional Sessions Judge, Kopargaon, in Criminal Appeal No. 46 of 2018. The appellate court admitted the appeal and passed an order on 22-11-2018 directing the applicant to deposit Rs. 2,00,000/- towards part of the compensation by the next date, as a condition for suspension of sentence. The applicant challenged this order by filing a Criminal Application under Section 482 Cr.P.C. before the Bombay High Court. The High Court heard both sides and held that the condition of pre-deposit imposed by the appellate court was illegal and not warranted at the stage of admission. The court observed that the appellate court had not yet heard the appeal on merits and could not pre-judge the matter by requiring deposit of compensation. The High Court quashed the impugned order and directed the appellate court to hear the appeal on merits without insisting on any pre-deposit. The application was allowed and the rule was made absolute.

Headnote

A) Criminal Procedure Code - Suspension of Sentence - Section 389 Cr.P.C. - Condition of Pre-Deposit - The appellate court while suspending sentence under Section 389 Cr.P.C. cannot impose a condition of depositing part of the compensation awarded under Section 357 Cr.P.C. without hearing the appeal on merits. Such a condition is illegal and amounts to pre-judging the appeal. (Paras 2-5)

B) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Compensation - Section 357 Cr.P.C. - The direction to deposit Rs. 2,00,000/- as a condition for suspension of sentence was set aside as the appellate court had not yet heard the appeal on merits. The High Court held that the condition was not warranted at the stage of admission of appeal. (Paras 3-5)

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Issue of Consideration

Whether the appellate court can impose a condition of depositing part of the compensation amount under Section 357 Cr.P.C. while suspending the sentence under Section 389 Cr.P.C. in an appeal against conviction under Section 138 of the Negotiable Instruments Act, 1881.

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Final Decision

The High Court allowed the application, quashed the impugned order dated 22-11-2018, and directed the appellate court to hear the appeal on merits without insisting on any pre-deposit. Rule made absolute.

Law Points

  • Section 357 Cr.P.C. compensation cannot be a condition for suspension of sentence under Section 389 Cr.P.C.
  • Section 138 NI Act appeal
  • pre-deposit condition illegal
  • appellate court's discretion under Section 389 Cr.P.C.
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Case Details

2019 LawText (BOM) (04) 48

Criminal Application No. 3623 of 2018

2019-04-02

K.K. Sonawane, J.

Mr. Shaikh Mazhar A. Jahagirdar for applicant, Mr. M.L. Sangeet for respondent

Rahul Kisan Khande

Samir Salim Shaikh (Dead) through Salim Bakshu Shaikh

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Nature of Litigation

Criminal application under Section 482 Cr.P.C. to quash an order of the appellate court directing pre-deposit of compensation as a condition for suspension of sentence.

Remedy Sought

The applicant sought quashing of the order dated 22-11-2018 passed by the Additional Sessions Judge, Kopargaon, directing deposit of Rs. 2,00,000/- towards part of compensation.

Filing Reason

The applicant was convicted under Section 138 NI Act and sentenced to one year imprisonment and compensation of Rs. 6,50,000/-. In appeal, the appellate court directed deposit of Rs. 2,00,000/- as a condition for suspension of sentence.

Previous Decisions

The Magistrate convicted the applicant and ordered compensation. The appellate court admitted the appeal and imposed the pre-deposit condition.

Issues

Whether the appellate court can impose a condition of depositing part of the compensation amount under Section 357 Cr.P.C. while suspending the sentence under Section 389 Cr.P.C. in an appeal against conviction under Section 138 of the Negotiable Instruments Act, 1881.

Submissions/Arguments

The applicant argued that the condition of pre-deposit was illegal and not warranted at the stage of admission of appeal. The respondent supported the order of the appellate court.

Ratio Decidendi

The appellate court while suspending sentence under Section 389 Cr.P.C. cannot impose a condition of depositing part of the compensation awarded under Section 357 Cr.P.C. without hearing the appeal on merits. Such a condition is illegal and amounts to pre-judging the appeal.

Judgment Excerpts

The applicant, by invoking remedy under Section 482 of the Code of Criminal Procedure, preferred present Criminal Application seeking relief to quash and set aside the impugned Order (below Exhibit-1) dated 22-11-2018, passed by learned Additional Sessions Judge, Kopargaon, in the proceeding bearing Criminal Appeal No. 46 of 2018, thereby directing the applicant to deposit amount of Rs. 2,00,000/- towards part of compensation awarded by the learned Magistrate. The appellate court had not yet heard the appeal on merits and could not pre-judge the matter by requiring deposit of compensation.

Procedural History

The applicant was convicted under Section 138 NI Act by the Magistrate, First Class, Rahata, in Summary Criminal Case No. 1294 of 2015. He appealed to the Additional Sessions Judge, Kopargaon, in Criminal Appeal No. 46 of 2018. The appellate court admitted the appeal and on 22-11-2018 passed an order directing the applicant to deposit Rs. 2,00,000/- towards part of compensation. The applicant then filed the present Criminal Application under Section 482 Cr.P.C. before the Bombay High Court.

Acts & Sections

  • Code of Criminal Procedure, 1973 (Cr.P.C.): 357, 389, 482
  • Negotiable Instruments Act, 1881 (NI Act): 138
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