The Hon’ble Supreme Court of India
has clarified that in Cheque Bounce Case: as per the amended Section 148 of the
N.I. Act, a minimum of 20% of the fine or compensation awarded by the trial
court is directed to be deposited.
Cheque Bounce Case: The Supreme
Court has held that the accused shall deposit 20 per cent of the amount in
question to appeal against order in a cheque bounce case. The apex court Bench
of Justices Ashok Bhushan and MR Shah has also reiterated that Section 148 of
the Negotiable Instruments Act can be applied with retrospective effect. Under
this section, courts can order defaulters to deposit an amount during pendency
of a cheque bounce case.
Facts of the case
The appellants in the case were
partners in an infrastructure company. The Respondent No.1 was also a partner
of the firm. When the respondent retired, a check of Rs 45,84,915 was issued to
him by the firm against the part payment of the retirement dues. As many as 63
other cheques were issued by the appellant in favour of the respondent. All of
these cheques were dishonoured. The respondent filed 28 complaints under
Section 138 of the NI Act before the Judicial Magistrate, Ist Class, Panchkula,
which held the appellants “guilty for
the offence punishable under Section 138 of the NI Act.”
The appellants were convicted and
sentenced to undergo imprisonment for two years and to pay jointly and
severally an amount equal to the amount involved in the present case i.e.
cheque amount plus 1 per cent of this amount as interest as well as litigation
expenses.
The appellants appealed against
the order before the Sessions Court which suspended the previous sentence while
asking them to deposit 25 per cent of the compensation amount. The appellants
then moved the high court which dismissed the appeal. The Supreme Court also
dismissed their appeal.
However, later, the Additional
Sessions Judge asked the appellants to surrender before the trial court,
leading to a fresh round of litigation with the matter finally reaching the top
court. The appellant’s counsel argued
before the apex court that “the direction to deposit 25% of the compensation as
directed by the trial court could not have been made under Section 148 of the
NI Act. Section 148 of the NI Act having
come into force on 01.09.2018 could not have been relied by the Courts below.
Since, the complaint was filed in the year 2015 alleging offence under Section
138 of the NI Act which was much before the enforcement of Section 148 of the
NI Act.”
20% Deposit
The top court had earlier noted
in the case, “as per the amended Section 148 of the N.I. Act, a minimum of 20%
of the fine or compensation awarded by the trial court is directed to be
deposited and that such amount is to be deposited within 60 days from the date
of the order, or within such further period not exceeding 30 days as may be
directed by the appellate court for sufficient cause shown by the Appellant.”
On the question of suspension of
sentence, the apex court noted, “The
Court which has suspended the sentence on a condition, after noticing
non-compliance of the condition can very well hold that the suspension of
sentence stands vacated due to non-compliance.”
“It is for the Appellate Court
who has granted suspension of sentence to take call on non-compliance and take
appropriate decision. What order is to be passed by the Appellate Court in such
circumstances is for the Appellate Court to consider and decide. However,
non-compliance of the condition of suspension of sentence is sufficient to
declare suspension of sentence as having been vacated,” the Supreme Court said.
