High Court of Karnataka Allows Modification of Interim Order in NI Act Case — Directs Deposit of 20% of Fine Amount as Per Amended Section 148 of Negotiable Instruments Act, 1881. The Court held that the amendment to Section 148 of the NI Act, which came into effect on 01-09-2019, is procedural and applies to pending appeals, requiring deposit of 20% of the fine amount instead of 10%.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution
  • 80
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Syed Ishrathulla Hussaini, filed a writ petition under Articles 226 and 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, seeking modification of an interim order passed by the XIII Additional City Civil and Sessions Judge, Mayohall Unit, Bangalore, in Criminal Appeal No.25120 of 2018. The background of the case involves a transaction between the petitioner and the respondent that led to the registration of a crime under Section 138 of the Negotiable Instruments Act, 1881. The trial court took cognizance of the offence on 07-02-2011 and registered C.C.No.26468 of 2011. The respondent/accused was convicted and sentenced by the learned Magistrate on 11-06-2018. The accused filed an appeal before the learned Sessions Judge in Criminal Appeal No.25120 of 2018. The learned Sessions Judge, while directing suspension of sentence and staying conviction, ordered the deposit of 10% of the amount determined by the learned Magistrate, vide order dated 23-12-2019. The petitioner contended that by the time the order was passed, the amendment to Section 148 of the Negotiable Instruments Act, 1881, which came into effect on 01-09-2019, had already come into force. The amended Section 148 mandates that the appellate court shall order the appellant to deposit a minimum of 20% of the fine or compensation amount. The petitioner argued that the order directing deposit of 10% was contrary to the statute. The respondent opposed the petition, arguing that the amendment was not retrospective and that the appeal was filed before the amendment. The court analyzed the nature of the amendment and held that it is procedural and applies to all pending appeals. The court relied on the principle that procedural amendments are retrospective unless expressly made prospective. The court found that the appellate court's order was contrary to the amended provision and allowed the petition, modifying the interim order to direct deposit of 20% of the fine amount. The court directed the respondent to deposit 20% of the fine amount within four weeks from the date of the order, failing which the suspension of sentence and stay of conviction would stand vacated.

Headnote

A) Criminal Procedure - Negotiable Instruments Act - Section 148 Amendment - Applicability to Pending Appeals - The amendment to Section 148 of the Negotiable Instruments Act, 1881, which came into effect on 01-09-2019, is procedural in nature and applies to all pending appeals, including those filed before the amendment. The appellate court's order directing deposit of 10% of the fine amount was contrary to the amended provision which mandates deposit of 20% of the fine amount. (Paras 4-6)

B) Criminal Procedure - Section 482 CrPC - Inherent Powers - Modification of Interim Orders - The High Court under Section 482 CrPC read with Articles 226 and 227 of the Constitution can modify an interim order of the appellate court to bring it in conformity with the statutory mandate. The petitioner's prayer for modification was allowed to the extent of directing deposit of 20% of the fine amount. (Paras 7-8)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the amendment to Section 148 of the Negotiable Instruments Act, 1881, which came into effect on 01-09-2019, applies to pending appeals and whether the appellate court's order directing deposit of 10% of the fine amount is contrary to the amended provision.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court allowed the writ petition and modified the interim order dated 23-12-2019 passed by the XIII Additional City Civil and Sessions Judge, Mayohall Unit, Bangalore, in Criminal Appeal No.25120 of 2018, directing the respondent to deposit 20% of the fine amount instead of 10%. The respondent was directed to deposit the amount within four weeks from the date of the order, failing which the suspension of sentence and stay of conviction would stand vacated.

Law Points

  • Amendment to Section 148 of Negotiable Instruments Act
  • 1881 is procedural and applies to pending appeals
  • Deposit of 20% of fine amount mandatory for suspension of sentence under Section 148 NI Act
  • Section 482 CrPC cannot be used to circumvent statutory requirements
Subscribe to unlock Law Points Subscribe Now

Case Details

2022 LawText (KAR) (06) 3

Writ Petition No.4550 of 2020 (GM-RES)

2022-06-16

M. Nagaprasanna

Syed Ishrathulla Hussaini (Party-in-Person), Satish V. (Advocate for Respondent)

Syed Ishrathulla Hussaini

Noor Ahmed N.M.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India read with Section 482 of CrPC seeking modification of an interim order passed by the appellate court in a criminal appeal under Section 138 of the Negotiable Instruments Act, 1881.

Remedy Sought

The petitioner sought modification of the interim order dated 23-12-2019 passed by the XIII Additional City Civil and Sessions Judge, Mayohall Unit, Bangalore, in Criminal Appeal No.25120 of 2018, to the extent that the direction to deposit 10% of the fine amount be modified to 20% as per the amended Section 148 of the Negotiable Instruments Act, 1881.

Filing Reason

The petitioner contended that the appellate court's order directing deposit of 10% of the fine amount was contrary to the amended Section 148 of the Negotiable Instruments Act, 1881, which came into effect on 01-09-2019 and mandates deposit of 20% of the fine amount.

Previous Decisions

The trial court convicted the respondent/accused under Section 138 of the Negotiable Instruments Act, 1881 on 11-06-2018. The respondent filed an appeal before the Sessions Court, which passed an interim order on 23-12-2019 suspending sentence and staying conviction subject to deposit of 10% of the fine amount.

Issues

Whether the amendment to Section 148 of the Negotiable Instruments Act, 1881, effective from 01-09-2019, applies to pending appeals? Whether the appellate court's order directing deposit of 10% of the fine amount is contrary to the amended provision?

Submissions/Arguments

Petitioner argued that the amendment to Section 148 is procedural and applies to all pending appeals, and the appellate court's order directing deposit of 10% is contrary to the statute. Respondent argued that the amendment is not retrospective and the appeal was filed before the amendment came into force, so the old provision should apply.

Ratio Decidendi

The amendment to Section 148 of the Negotiable Instruments Act, 1881, which came into effect on 01-09-2019, is procedural in nature and applies to all pending appeals. The appellate court is bound to order deposit of a minimum of 20% of the fine or compensation amount as per the amended provision. The order directing deposit of 10% was contrary to the statute and liable to be modified.

Judgment Excerpts

The amendment to Section 148 of the NI Act is procedural and applies to all pending appeals. The appellate court's order directing deposit of 10% of the fine amount is contrary to the amended provision which mandates deposit of 20%.

Procedural History

The trial court took cognizance of the offence under Section 138 of the Negotiable Instruments Act, 1881 on 07-02-2011 and registered C.C.No.26468 of 2011. The respondent/accused was convicted and sentenced on 11-06-2018. The accused filed an appeal before the Sessions Court in Criminal Appeal No.25120 of 2018. The Sessions Court passed an interim order on 23-12-2019 suspending sentence and staying conviction subject to deposit of 10% of the fine amount. The petitioner filed the present writ petition on 17-02-2020 seeking modification of the interim order.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138, 148
  • Code of Criminal Procedure, 1973: 200, 482
  • Constitution of India: 226, 227
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Dismisses Insurance Company's Appeal in Motor Accident Claim — Insurance Company Liable for Death of Gratuitous Passenger on Tractor. Insurance Company Failed to Prove Breach of Policy Terms, Hence Joint and Several Liability with...
Related Judgement
High Court Bombay High Court Dismisses Petition Challenging Circular Under Section 79-A of Maharashtra Cooperative Societies Act, 1960 — Circular Held Valid. The court found that the circular dated 9.3.1995 was within the powers of the State Government under ...