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SIf someone is convicted under the Negotiable Instruments Act (Section 138) and sentenced to pay double the cheque amount as a fine along with one year of simple imprisonment, what happens if they file an appeal in the Sessions Court?
Is there a fixed rule that they must deposit 20% of the fine amount as a precondition for the appeal to be entertained? If so, under which provision is this required? Any insights from legal professionals or those with experience in similar cases would be appreciated.
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UNAL (source: google)
Section 148 of the Negotiable Instruments Act (NIA) empowers the appellate court to order the appellant (drawer) to deposit a minimum of 20% of the fine or compensation awarded by the trial court in an appeal against conviction under Section 138 of the NIA
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UThat a purposive interpretation should be made of section 148 of the NI Act. Normally the Appellate Court will be justified in imposing the condition of deposit as provided in section 148.
However in cases where the Appellate Court is satisfied that the condition of deposit of 20% will be unjust or imposing such a condition will amount to deprivation of the right of appeal of the appellant, exception can be made for reasons specifically recorded
[https://www.indialaw.in/blog/criminal/supreme-court-20-deposit-not-absolute/#:~:text=%E2%80%9CThe%2C%20amended%20Section%20148%20of,the%20application%20file%20by%20the](https://www.indialaw.in/blog/criminal/supreme-court-20-deposit-not-absolute/#:~:text=%E2%80%9CThe%2C%20amended%20Section%20148%20of,the%20application%20file%20by%20the)
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IThere is Delhi HC judgment [*Anuj Ahuja Vs Sumitra Mittal & Anr.*] pronounced yesterday, i.e., March 17, 2025 in which it held that the requirement to deposit 20 percent under Section 148 Negotiable Instruments Act is not mandatory and is left open to the discretion of courts.
[Bar and Bench article link](https://www.barandbench.com/news/not-mandatory-to-deposit-20-percent-amount-for-filing-appeal-in-cheque-bounce-cases-delhi-high-court#:~:text=%E2%80%9CSuch%20an%20order%20asking%20an,NI%20Act%2C%20has%20to%20reflect)
[Judgment copy](https://dhccaseinfo.nic.in/jsearch/judgement.php?path=dhc/591/judgement/17-03-2025/&name=59117032025CRLMM13272025_161930.pdf)
Neutral citation: 2025:DHC:1687
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