Case Note & Summary
The petitioner, Sanjay P.S., was the accused in a complaint under Section 138 of the Negotiable Instruments Act, 1881, filed by the respondent, Abhishek M. The parties had a financial transaction totaling Rs. 37,50,000, for which the petitioner issued cheques in favor of the respondent. When presented, the cheques were dishonoured due to 'stop payment' instructions. The trial court convicted the petitioner under Section 138 NI Act. The petitioner filed a criminal revision petition before the LXIV Additional City Civil and Sessions Judge, Bengaluru, challenging the conviction. During the pendency of the revision, the revisional court passed an order on 17-06-2023 directing the petitioner to pay 10% of the cheque amount to the respondent within 60 days, purportedly under Section 148 of the NI Act. The petitioner challenged this order before the High Court under Section 482 CrPC. The High Court heard the petitioner's counsel and examined the facts. The court noted that the revision petition was filed in 2022, prior to the amendment to Section 148 of the NI Act, which came into effect on 01-09-2023. The court held that the amendment is not retrospective and does not apply to pending revisions. The court also observed that the revisional court had not considered the petitioner's financial circumstances before imposing the condition. Consequently, the High Court allowed the petition, set aside the impugned order, and directed the revisional court to proceed with the revision on its merits without insisting on any pre-deposit.
Headnote
A) Criminal Procedure - Section 482 CrPC - Inherent Powers - Quashing of Condition - The High Court exercised its inherent jurisdiction under Section 482 CrPC to set aside the revisional court's order directing the petitioner to pay 10% of the cheque amount as a condition for hearing the revision petition, holding that the condition was imposed without proper application of mind and without considering the petitioner's financial status. (Paras 1-10) B) Negotiable Instruments Act - Section 148 - Pre-deposit - Retrospectivity - The amendment to Section 148 of the NI Act, which mandates a minimum deposit of 20% of the cheque amount for filing an appeal, is not retrospective and does not apply to appeals or revisions pending on the date of amendment. The revisional court erred in applying the provision to a revision petition filed prior to the amendment. (Paras 5-8) C) Negotiable Instruments Act - Section 138 - Dishonour of Cheque - Stop Payment - The petitioner issued cheques for a total transaction of Rs. 37,50,000, which were dishonoured due to 'stop payment' instructions. The trial court convicted the petitioner under Section 138 NI Act, and the revisional court imposed a pre-deposit condition under Section 148. The High Court quashed the condition, noting that the revision was pending before the amendment. (Paras 3-4)
Issue of Consideration
Whether the amendment to Section 148 of the Negotiable Instruments Act, 1881, which mandates a minimum pre-deposit of 20% of the cheque amount for filing an appeal against conviction under Section 138, applies retrospectively to appeals pending on the date of amendment, and whether the revisional court can impose a condition of pre-deposit under Section 148 without considering the accused's financial circumstances.
Final Decision
The High Court allowed the petition, set aside the order dated 17-06-2023 passed by the LXIV Additional City Civil and Sessions Judge, Bengaluru in Crl.RP.No.527/2022, and directed the revisional court to proceed with the revision on its merits without insisting on any pre-deposit.
Law Points
- Section 148 of Negotiable Instruments Act
- 1881
- Section 482 of Code of Criminal Procedure
- 1973
- Retrospective application of amendment
- Discretionary power to impose pre-deposit
- Criminal revision against conviction under Section 138 NI Act
