Chapter XVII - Of Penalties in Case of Dishonour of Certain Cheques for Insufficiency of Funds in the Accounts
Section 148
Section 148: Power of Appellate Court to order payment pending appeal against conviction
Section 148 permits an appellate deposit order in a drawer’s appeal against a section 138 conviction, ordinarily using at least 20% of the trial court’s fine or compensation.
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Need advice on Section 148?
This article is for general information. Refer to the Negotiable Instruments Act, 1881 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(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.
Appeal stage and the correct calculation base
The provision concerns an appeal by the drawer against conviction under section 138. The calculation base is the fine or compensation awarded by the trial court, not automatically the face value of the cheque.
This differs from section 143A: that trial-stage power has a ceiling of 20% of the cheque amount, while a deposit ordered under section 148 carries a minimum of 20% of the awarded fine or compensation.
Reasoned exceptions and company signatories
In Jamboo Bhandari v. M.P. State Industrial Development Corporation (2023 INSC 822), the Supreme Court explained that the normal deposit condition is not absolute. A court may make a reasoned exception where the condition would be unjust or deprive the appellant of the right of appeal.
Bijay Agarwal v. M/s Medilines (2024 INSC 918) confirms that signing a company cheque alone does not make the officer its drawer for section 148. Drawer identity and exceptional circumstances require assessment.
Additional deposit, timing and release
The section 148 deposit is additional to interim compensation already paid under section 143A. Do not simply subtract the earlier payment from the required appellate deposit.
The period is 60 days from the order, extendable by the court by up to 30 days on sufficient cause shown. The appellate court may direct release to the complainant during the appeal; release is not automatic.
If the appellant is acquitted, the court directs the complainant to return the amount released with the specified RBI bank-rate interest. The statute supplies a 60-day repayment period and a possible further 30 days on sufficient cause.
Hypothetical example
Hypothetical: the trial court awards ₹8 lakh as compensation. If the appellate court orders a deposit under section 148, the statutory 20% minimum is ₹1.6 lakh, subject to the court’s decision on any legally justified exception.
The appellant should examine the actual award and order, any earlier section 143A payment, and whether a release direction has been made. The example does not predict suspension of sentence or the appeal outcome.
Appeal preparation checklist
Keep the conviction judgment, sentence or compensation order and appeal papers together.
Identify whether the appellant is the drawer and document company-account facts where relevant.
Calculate the statutory base from the actual award and put any exceptional circumstances before the court with supporting evidence.
Calendar deposit and extension dates, and maintain separate records of amounts deposited, released and repaid.
Verified judicial guidance
Jamboo Bhandari, 4 September 2023 explains reasoned exceptions. Bijay Agarwal, 21 October 2024 addresses the company-signatory distinction. Consolidated Act supplies the statutory wording.
The quoted text retains its Code of Criminal Procedure references. Applicable procedural transition and case-specific orders should be checked before filing an application.
Practical checklist
Do
- Use the actual fine or compensation award for the calculation.
- Put supported exceptional circumstances before the court.
Avoid
- Do not confuse the section 143A ceiling with the section 148 minimum.
- Do not assume deposit, release and refund happen automatically.
Glossary
- Appellate deposit
- An amount ordered to be deposited while the conviction appeal is pending.
- Awarded compensation
- The compensation ordered by the trial court, used for the section 148 calculation.
- Reasoned exception
- A departure supported by specifically recorded judicial reasons under the Supreme Court’s guidance.
Frequently asked questions
Is 20% calculated on the cheque amount?
The section uses the fine or compensation awarded by the trial court. This differs from section 143A’s cheque-amount ceiling.
Is deposit compulsory without any exception?
No absolute no-exception rule should be stated. The Supreme Court permits a specifically reasoned exception in the circumstances it identifies.
Does an earlier section 143A payment remove the appellate deposit?
No. The proviso states that the section 148 amount is additional to interim compensation paid under section 143A.
Is the deposit automatically released to the complainant?
No. The appellate court may direct its release during the appeal.
What follows an acquittal after release?
The complainant must repay the released amount with the statutory RBI bank-rate interest as directed by the court.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026