Section 148 Of Negotiable Instruments Act has retrospective effect

In an important judgment, the Supreme Court has held that Section 148 of the Negotiable Instruments Act as amended, shall be applicable in respect of the appeals against the order of conviction and sentence for the offence under Section 138 of the N.I. Act, even in a case where the criminal complaints for the offence under Section 138 of the N.I. Act were filed prior to 2018 amendment Act i.e., prior to 01.09.2018.

The said ruling was made in the matter of Surinder Singh Deswal @ Colonel SS Deswal and others Vs. Virender Gandhi (Criminal Appeals No. 917-944/2019), decided on 29.05.2019.

Challenge

The issue considered by the Supreme Court bench was whether the first appellate court is justified in directing the appellants – original accused who have been convicted for the offence under Section 138 of the N.I. Act to deposit 25% of the amount of compensation/fine imposed by the learned trial Court, pending appeals challenging the order of conviction and sentence, considering Section 148 of the N.I. Act as amended?

Held

Explaining the object of 2018 amendment, the bench said that that it is because of the delay tactics of unscrupulous drawers of dishonoured cheques due to easy filing of appeals and obtaining stay on proceedings, the Parliament thought it fit to amend Section 148 of the N.I. Act . The court added that by the amendment , it cannot be said that any vested right of appeal of the accused – appellant has been taken away and/or affected.