P&H HC | S. 148 of NI Act, 1881 being procedural in nature has retrospective effect; payment of 25% of award amount upheld

Punjab and Haryana High Court: Rajbir Sehrawat, J. upheld the decision of the lower court on the set principle of law which was already decided by the court.

A petition was filed to quash the order passed by Additional Session Judge, Faridabad in an appeal against the conviction and sentence in a complaint under Section 138 of the Negotiable Instrument Act, 1881 directing the appellant/petitioners to deposit 25 per cent of the amount awarded by the trial Court, during the pendency of the appeal.

Kunal Dawar, Counsel for the petitioner submitted that complaint was made in the year 2017, for which the petitioner was convicted. That during the pendency of the appeal, the appellate court passed the order whereby it was directed to deposit 25 per cent of the amount of the compensation to the appellate court. The counsel for the petitioner submitted that the act was introduced for the first time in the year 2018 and there cannot be any retrospective effect of the same. Thus, the provision contained in newly added Section 148 of the Act cannot be applied to the present appeal, which had arisen from the case where the trial was pending on the date of enforcement of the amended provision. Thus, prayed for the quashing of the order.

The court opined that the point of law which was raised by the petitioner had already been considered and decided by this court in the judgment of Ginni Garments v. Sethi Garments; CRR No. 9872-2018 (O&M), in which it was held that the “procedure for recovery of fine or compensation from appellant in pending appeal already existed in CrPC even before advent of the provision as contained in Section 148 of the Act. Hence, no new aspect of coercive recovery of fine or compensation from the appellant is being freshly created through this amended provision. Rather this provision is beneficial to the convict/appellant because it reduces the liability of the appellant qua immediate deposit of fine or compensation, if not otherwise stayed by Appellate Court.”  Thus the impugned order was upheld in the present petition.[Ebullient Cables (P) Ltd. v. Supertech Machines (P) Ltd., 2019 SCC OnLine P&H 1013, decided on 02-07-2019]

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