P&H High Court Upholds 20% Deposit Direction in Cheque Bounce Appeal; Rejects Plea of Financial Hardship

Case Name: Balvir Kaur vs. State of Punjab and Another
Date of Judgment: 10 November 2025
Citation: CRM-M-62778-2025
Bench: Hon’ble Mr. Justice Sumeet Goel

Held: The Punjab & Haryana High Court upheld the appellate court’s direction requiring the petitioner to deposit 20% of the compensation amount under Section 148 of the Negotiable Instruments Act. The Court held that financial hardship and disability did not constitute exceptional circumstances for waiving the statutory deposit. Relying on Jamboo Bhandari and Muskan Enterprises, the Court held that the 20% deposit is the rule, and waiver is permissible only when compelling reasons are shown. It ruled that no such material was presented and that the impugned condition did not take away the petitioner’s right of appeal.

Summary: The petitioner challenged the order of the Additional Sessions Judge, Sangrur, which granted suspension of sentence in a cheque dishonour appeal but required deposit of 20% of the compensation amount. The petitioner claimed inability to pay due to financial difficulty and disability and argued that the condition was imposed without adequate opportunity of hearing. The Court examined Section 148 NI Act and Supreme Court precedents, which emphasise that appellate courts may waive the deposit only in exceptional cases supported by cogent material. The Court found that the petitioner produced no evidence to establish exceptional hardship. It held that the legislative intent behind Section 148 was to curb frivolous appeals and secure timely relief to complainants. It concluded that the appellate court acted within jurisdiction and applied the correct legal principles.

Decision: The petition was dismissed, and the condition requiring deposit of 20% of the compensation amount was affirmed. All pending applications were disposed of.