Case Note & Summary
The petitioner, Nurallah Kamruddin Veljee, was convicted under Section 138 of the Negotiable Instruments Act, 1881 by the Trial Court and sentenced to pay compensation of ₹6 crores, with default simple imprisonment of two years. He appealed before the Sessions Court, Panaji, and filed an application for suspension of sentence. The Additional Sessions Judge, by order dated 04/06/2019, directed the petitioner to deposit 25% of the compensation amount (₹1.5 crores) under Section 148 of the NI Act. The petitioner challenged this condition in the High Court under Section 482 CrPC and Article 227 of the Constitution, arguing that the order was passed without assigning any reasons or considering the records. The High Court noted that the challenge was limited to the pre-deposit condition and that no substantive sentence had been passed. The Court found that the impugned order was illegal, arbitrary, and discriminatory as it lacked reasoning. Consequently, the High Court quashed the condition to deposit 25% and directed the Additional Sessions Judge to hear the parties afresh and decide whether any deposit is required pending the appeal, without being influenced by the earlier order.
Headnote
A) Criminal Procedure - Suspension of Sentence - Pre-deposit Condition - Section 148 Negotiable Instruments Act, 1881 - Section 482 Code of Criminal Procedure, 1973 - The Additional Sessions Judge directed the petitioner to deposit 25% of the compensation amount of ₹6 crores without assigning any reasons or appreciating records - Held that the impugned order is illegal, arbitrary, and without application of mind, and is quashed to the extent of the pre-deposit condition, with direction to hear parties afresh (Paras 2-6).
Issue of Consideration
Whether the order directing deposit of 25% of compensation amount under Section 148 of the Negotiable Instruments Act, 1881 pending appeal is legal and justified without assigning reasons.
Final Decision
The impugned order dated 04/06/2019 is quashed and set aside to the extent it directs the petitioner to deposit 25% of the amount of compensation. The matter is remitted to the Additional Sessions Judge to hear the parties afresh and decide whether the petitioner is liable to pay/deposit any amount pending final hearing of Criminal Appeal No.60/2019, without being influenced by the earlier order.
Law Points
- Section 148 of Negotiable Instruments Act
- 1881
- Section 482 of Code of Criminal Procedure
- 1973
- Article 227 of Constitution of India
- suspension of sentence
- pre-deposit condition
- reasons to be recorded
Case Details
2019 LawText (BOM) (08) 147
Criminal Writ Petition No.140 of 2019
Shri Kaif Noorani with Ms. Rida Shaikh for Petitioner, Shri Abhay Nachinolkar with Shri H. Vaze for Respondent
Nurallah Kamruddin Veljee
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Nature of Litigation
Criminal writ petition challenging condition of pre-deposit of 25% compensation under Section 148 NI Act pending appeal against conviction under Section 138 NI Act.
Remedy Sought
Petitioner sought quashing of the condition to deposit 25% of compensation and direction to hear afresh without pre-deposit.
Filing Reason
Impugned order dated 04/06/2019 passed by Additional Sessions Judge directing deposit of 25% of ₹6 crores compensation without assigning reasons.
Previous Decisions
Trial Court convicted petitioner under Section 138 NI Act and awarded compensation of ₹6 crores with default sentence of two years. Petitioner appealed and filed application for suspension of sentence. Additional Sessions Judge passed impugned order directing 25% deposit.
Issues
Whether the order directing deposit of 25% of compensation under Section 148 NI Act is legal without recording reasons.
Submissions/Arguments
Petitioner argued that the impugned order is illegal, arbitrary, unconstitutional, and discriminatory as passed without assigning any reasons or appreciating records.
Respondent's arguments not detailed in judgment.
Ratio Decidendi
An order directing pre-deposit under Section 148 of the Negotiable Instruments Act, 1881 must be supported by reasons; otherwise, it is illegal and arbitrary. The appellate court must apply its mind to the facts and circumstances before imposing such a condition.
Judgment Excerpts
The challenge in this petition is to an order dated 04/06/2019 passed by the Additional Sessions Judge, Panaji directing the petitioner to deposit 25% of the amount of compensation awarded by the Trial Court...
It is the contention of the learned Counsel for the petitioner that the impugned order needs to be quashed and set aside to the extent it directs the petitioner to deposit 25% of the amount of compensation... without assigning any reasons or without appreciating the records and proceedings.
Procedural History
Trial Court convicted petitioner under Section 138 NI Act and awarded compensation of ₹6 crores with default sentence. Petitioner appealed to Sessions Court and filed application for suspension of sentence. Additional Sessions Judge passed order dated 04/06/2019 directing deposit of 25% compensation. Petitioner filed Criminal Writ Petition No.140 of 2019 in High Court challenging the condition.
Acts & Sections
- Negotiable Instruments Act, 1881: 138, 148
- Code of Criminal Procedure, 1973: 482
- Constitution of India: Article 227
