Deposit of 20% Amount at Appellate Stage in cases of Cheque Dishonour under S.138 of Negotiable Instruments Act, 1881

Deposit of 20% Amount at Appellate Stage in cases of Cheque Dishonour under S.138 of Negotiable Instruments Act, 1881

In an interesting case, S.148 of NI Act, 1881 was explained. 

It was held that the appellate Court must be satisfied, prima facie, that the conviction is so manifestly flawed, be it due to procedural lapses, misappreciation of evidence, or other glaring legal infirmities, that the conviction is likely to be set aside, and that imposing a condition of deposit would amount to an unwarranted burden. Earlier Judgments refers to rare and exceptional cases. It does not lay down a blanket exemption from the statutory mandate of Section 148 of the NI Act. Thus, at the stage of suspension of sentence, the Appellate Court is not expected to undertake a detailed re-evaluation of the merits of the conviction. The argument that the ledger reflects no outstanding dues would require detailed scrutiny and appreciation of evidence - an exercise beyond the scope of appeal consideration at this preliminary stage.

Further, in this case accused has merely pleaded financial hardship without producing any supporting material to substantiate his claim. Bare assertions, devoid of documentation or any effort to demonstrate incapacity to comply with the statutory requirement, cannot justify exemption. Moreover, financial hardship, in the opinion of the court, in and of itself, is insufficient to override the statutory scheme, unless accompanied by compelling and demonstrable injustice or miscarriage. 

For more details refer Bandhu Baba Khad Bhandar v. State of NCTD [2025] GCtR 1693 (Delhi).