Section 148 NI Act: Power of Appellate Court to order payment pending appeal against conviction

Negotiable Instruments Act, 1881

Section 148 NI Act at a Glance

Section 148 NI Act allows an Appellate Court hearing a drawer's appeal against conviction under Section 138 NI Act to order the appellant to deposit a minimum of 20 per cent of the fine or compensation awarded by the trial court.

Section 148 NI Act Bare Act Text

148. Power of Appellate Court to order payment pending appeal against conviction.

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), in an appeal by the drawer against conviction under section 138, the Appellate Court may order the appellant to deposit such sum which shall be a minimum of twenty per cent. of the fine or compensation awarded by the trial Court:

Provided that the amount payable under this sub-section shall be in addition to any interim compensation paid by the appellant under section 143A.

(2) The amount referred to in sub-section (1) shall be deposited within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the appellant.

(3) The Appellate Court may direct the release of the amount deposited by the appellant to the complainant at any time during the pendency of the appeal:

Provided that if the appellant is acquitted, the Court shall direct the complainant to repay to the appellant the amount so released, with interest at the bank rate as published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year, within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the complainant.

Amendments to this section
  • Ins. by Act 20 of 2018, s. 3 (w.e.f. 1-9-2018).

Section 148 NI Act in Simple Words

Section 148 NI Act gives the Appellate Court the power to order a deposit from a drawer who appeals against a conviction under Section 138 NI Act. Under Section 148(1) NI Act, regardless of anything in the Code of Criminal Procedure, 1973, the Appellate Court may order the appellant to deposit a sum that must be a minimum of 20 per cent of the fine or compensation awarded by the trial court. Under the proviso to Section 148(1) NI Act, this amount is in addition to any interim compensation paid by the appellant under Section 143A NI Act.

Under Section 148(2) NI Act, the appellant must deposit the ordered amount within 60 days from the date of the order, or within a further period not exceeding 30 days if the court directs on sufficient cause shown by the appellant. Under Section 148(3) NI Act, the Appellate Court may direct the release of the deposited amount to the complainant at any time while the appeal is pending. Under the proviso to Section 148(3) NI Act, if the appellant is acquitted, the court must direct the complainant to repay the released amount to the appellant with interest at the Reserve Bank of India bank rate prevalent at the beginning of the relevant financial year, within 60 days from the date of the order, or within a further period not exceeding 30 days on sufficient cause shown by the complainant.

The Act still refers to the Code of Criminal Procedure, 1973, which the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) replaced from 1 July 2024. Act 20 of 2018 inserted Section 148 NI Act from 1 September 2018.

When Section 148 NI Act Applies

  • The drawer files an appeal against conviction for an offence under Section 138 NI Act.
  • The Appellate Court may order the appellant to deposit a sum that is at least 20 per cent of the fine or compensation awarded by the trial court, in addition to any interim compensation paid under Section 143A NI Act.
  • The appellant must deposit the amount within 60 days of the order, extendable by up to 30 days by the court on sufficient cause shown by the appellant.
  • The Appellate Court may direct the release of the deposited amount to the complainant at any time while the appeal is pending.
  • If the appellant is acquitted, the court must direct the complainant to repay the released amount with interest at the Reserve Bank of India bank rate prevalent at the start of the relevant financial year within 60 days, extendable by up to 30 days on sufficient cause.

Example of Section 148 NI Act

A trial court in Jalandhar convicts Sunil under Section 138 NI Act for dishonour of a cheque drawn in favour of Mary and awards ₹4,00,000 as compensation, after Sunil has already paid ₹50,000 as interim compensation under Section 143A NI Act. Sunil appeals against the conviction to the Appellate Court in Jalandhar. Under Section 148(1) NI Act, the Appellate Court orders Sunil to deposit 20 per cent of the ₹4,00,000 compensation, which is ₹80,000, in addition to the ₹50,000 already paid under Section 143A NI Act. Under Section 148(2) NI Act, Sunil must deposit this ₹80,000 within 60 days of the order, extendable by up to 30 days on sufficient cause. The Appellate Court releases the ₹80,000 to Mary during the appeal under Section 148(3) NI Act, and if Sunil is later acquitted, the court must direct Mary to repay the ₹80,000 with interest at the Reserve Bank of India bank rate prevalent at the beginning of the relevant financial year.

FAQs on Section 148 NI Act

What is Section 148 NI Act?▼

Section 148 NI Act empowers an Appellate Court hearing a drawer's appeal against conviction under Section 138 NI Act to order the appellant to deposit a minimum of 20 per cent of the fine or compensation awarded by the trial court. It also allows the court to release this deposit to the complainant during the appeal, subject to repayment with interest if the appellant is acquitted.

What is the minimum deposit the Appellate Court can order under Section 148(1) NI Act?▼

20 per cent of the fine or compensation awarded by the trial court. Section 148(1) NI Act sets 20 per cent as the minimum sum when the Appellate Court orders a deposit.

Is interim compensation paid under Section 143A NI Act deducted from the deposit under Section 148 NI Act?▼

No. Under the proviso to Section 148(1) NI Act, the amount payable under Section 148(1) NI Act is in addition to any interim compensation paid by the appellant under Section 143A NI Act.

Within what period must the appellant deposit the amount ordered under Section 148 NI Act?▼

60 days from the date of the order. Under Section 148(2) NI Act, the court may direct a further period not exceeding 30 days if the appellant shows sufficient cause.

Can the complainant receive the deposited money while the appeal is still pending under Section 148(3) NI Act?▼

Yes. Under Section 148(3) NI Act, the Appellate Court may direct the release of the amount deposited by the appellant to the complainant at any time during the pendency of the appeal.

What happens to the released deposit if the appellant is acquitted in the appeal under Section 148(3) NI Act?▼

The complainant must repay the released amount with interest. Under the proviso to Section 148(3) NI Act, the court must direct the complainant to repay the amount with interest at the Reserve Bank of India bank rate prevalent at the beginning of the relevant financial year within 60 days of the order, extendable by up to 30 days on sufficient cause.

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Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·