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Rajasthan High Court
Criminal Law

Section 148 NI Act Deposit Not a Routine Condition for Suspending Cheque-Bounce Sentence: Rajasthan High Court

Published: · NyayVidhan

The Rajasthan High Court held that Section 430 of the BNSS and Section 148 of the Negotiable Instruments Act operate independently, and that an appellate court cannot routinely demand a 20% deposit of the fine as a precondition for suspending a cheque-dishonour sentence (paras 7-9). Applying Jamboo Bhandari, it set aside the deposit condition and directed the Sessions Court to hear the appeal without pre-deposit, preferably within six months (paras 10-12).

Section 148 NI Act Deposit Not a Routine Condition for Suspending Cheque-Bounce Sentence: Rajasthan High Court
Photo: TrendSPLEND via Wikimedia Commons (CC BY-SA 4.0)

Judgment Intelligence

Petition Allowed
Kunaram v. State of Rajasthan & Anr.
2026:RJ-JD:20187
S.B. Criminal Miscellaneous (Petition) No. 9802/2025
Court
Rajasthan High Court
Date of Decision
28 April 2026
Bench
Justice Anil Kumar Upman
Relevant Acts & Sections
Negotiable Instruments Act, 1881 — Sections 138, 148; Bharatiya Nagarik Suraksha Sanhita, 2023 — Section 430 (Code of Criminal Procedure, 1973 — Section 389)
Final Outcome

Petition disposed of. The orders of 06.02.2025 and 24.09.2025 were modified and the 20% deposit condition for suspending the sentence was set aside; the appellate court must hear the appeal without pre-deposit and endeavour to decide it within six months of receiving the order (paras 11-13).

Key holdings

  1. Section 430 of the BNSS does not by itself authorise a fixed-percentage deposit as a condition of suspension (para 7).
  2. Section 148 of the NI Act has a non-obstante clause and operates separately from the suspension power (para 8).
  3. The deposit power should be exercised on the complainant's application, not suo motu or as a routine condition (para 8).
  4. Before a deposit is ordered, the accused must be heard and reasons must be recorded (para 9).
  5. Following Jamboo Bhandari, the deposit may be dispensed with where it would be unjust or defeat the right of appeal (para 10).

Brief Facts

Kunaram, convicted under Section 138 of the NI Act, has an appeal (Criminal Appeal No. 527/2024) pending before the Additional Sessions Judge No. 3, Jodhpur Metropolitan. On 06.02.2025 the appellate court suspended his sentence but directed him to deposit 20% of the fine before the trial court; on 24.09.2025 it rejected his application for exemption (para 1). He argued that the complainant had filed no application under Section 148 and that the condition was imposed in the belief that the provision is mandatory; he also pleaded serious illness and lack of income (paras 2-3). The State and the complainant defended the orders but, in the alternative, suggested an expedited hearing without the deposit (para 4).

Court's Findings

Reading the two provisions together (para 6), the Court held that they operate in distinct fields (para 7). Section 430 of the BNSS lets the appellate court suspend a sentence and impose conditions to secure the appellant's presence or the orderly administration of justice, but it does not by itself authorise a fixed-percentage deposit as a precondition for suspension (para 7). Section 148, which opens with a non-obstante clause, is a separate special power to strengthen enforcement in cheque cases; the two must be exercised separately and independently, and the deposit power should be exercised on the complainant's application, not suo motu or as a routine condition of suspension (para 8). The power is "neither mechanical nor absolute": the accused must be heard and allowed to oppose the complainant's prayer, and a deposit may be ordered only after considering both sides and recording reasons (para 9). Quoting Jamboo Bhandari, the Court noted that the deposit is normally justified, but an exception may be made for recorded reasons where it would be unjust or deprive the appellant of the right of appeal, and that treating 20% as an absolute rule is an error (para 10).

Legal Principle

Section 430 of the BNSS and Section 148 of the NI Act are independent powers. A deposit of at least 20% under Section 148 is discretionary but structured: it should follow the complainant's application, a hearing of the accused and recorded reasons, and cannot be attached to suspension of sentence as a matter of routine (paras 7-9).

Precedents Relied Upon

  1. Jamboo Bhandari v. M.P. State Industrial Development Corporation Ltd. & Ors. (2023) 10 SCC 446
    Followed Discussed at ¶ 2, 10, 11

    Section 148 of the NI Act is read purposively and a deposit is normally justified, but the appellate court must consider, even without a specific plea, whether the case is exceptional, and may suspend sentence without the 20% deposit, for recorded reasons, where the condition would be unjust or deprive the appellant of the right of appeal.

NyayVidhan
Court Judgments · 3 min read
Decided: April 28, 2026 Justice Anil Kumar Upman
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