Section 148 -NI Act – 20% payment pending appeal against conviction
In Section 138 NI Act complaint of the respondent, the petitioner no.2 who is the proprietor of the petitioner no.1 was convicted for six months and to pay compensation of Rs.17,50,000/- with 9% per annum.
In the appeal of the petitioners, the sentence was suspended subject to deposit of 20% of the compensation amount i.e. Rs.3,50,000/- within 15 days. This condition is challenged in the writ petition.
HELD that the word “may” in Section 148 has to be read as “shall” and the Appellate Court must ordinarily order deposit of minimum 20% of compensation or fine. Exception must be coupled with special reasons for not ordering deposit of such amount.
Since November, 2022, the complainant is fighting litigation, the accused contested the case and suffered conviction. The very object of section 148 is to avoid delay tactics of unscrupulous drawers, which compromises the sanctity of cheque transactions.
Judgment dated 11.9.2025 of the High Court of Bombay in Criminal Writ Petition No.704 of 2025 of Ms. Kesuram Khanchand and another Vs. Suresh Ghanshyamdas Chanchalani
