Widow’s Plea To Avoid Rs 3.61 Lakh NI Act Deposit Sent Back For Fresh Review After Sessions Court Left Her Grounds Unaddressed: Madras HC

The petitioner was convicted under Section 138 of the Negotiable Instruments Act, 1881, and sentenced to one year’s simple imprisonment and to pay compensation of ₹18,09,500.

She appealed and sought suspension of sentence under Section 430(1) of the BNSS.

The Appellate Court suspended the sentence but directed her to deposit ₹3,61,900, representing 20% of the compensation.

Challenging only that deposit condition, she argued that the Appellate Court had failed to consider her grounds for exemption, including that she was a widow with no independent income and had no criminal antecedents.

Section 148 of the Negotiable Instruments Act provides for a deposit in an appeal against conviction under Section 138; however, as applied in C.R. Balasubramanian v. P. Eswaramoorthi, the deposit is not to be imposed mechanically when the appellant raises grounds for reducing or dispensing with it.

The appellate court must consider those grounds and give reasons if it directs deposit of 20% of the compensation or cheque amount.

The judgment also refers to Jamboo Bhandari v. M.P. State Industrial Development Corporation Ltd. and Muskan Enterprises v. State of Punjab as authorities cited in support of that approach.

The petitioner invoked Section 430(1) BNSS for suspension of sentence; the present petition was brought under Section 528 BNSS.

The petitioner had specifically sought exemption from the deposit, relying on her personal circumstances and lack of income.

The Appellate Court’s order did not address those grounds or make findings on them.

Applying the principle that a 20% deposit condition cannot be imposed mechanically where exemption grounds are raised, the High Court held that the condition was unsustainable and that the exemption request required fresh, reasoned consideration by the Appellate Court.

It set aside the Appellate Court’s order insofar as it directed payment of ₹3,61,900 and remitted the matter to the Principal District and Sessions Judge, Thoothukudi, for fresh consideration of the deposit issue on its merits and in accordance with law, with a direction to dispose of it within four weeks of receiving the order.