Section 148 of NIA : Section 148: Power Of Appellate Court To Order Payment Pending Appeal Against Conviction

Explanation using Example

Imagine a business owner, Mr. Sharma, issues a cheque to his supplier, Mr. Gupta, which is later dishonored due to insufficient funds in Mr. Sharma's account. Mr. Gupta files a case under Section 138 of the Negotiable Instruments Act, and the trial court convicts Mr. Sharma, ordering him to pay a fine and compensation to Mr. Gupta.

Mr. Sharma decides to appeal against this conviction. According to Section 148 of the Negotiable Instruments Act, the appellate court, while hearing Mr. Sharma's appeal, can order him to deposit at least 20% of the fine or compensation that the trial court had awarded to Mr. Gupta. This payment is in addition to any interim compensation Mr. Sharma might have already been ordered to pay during the trial.

Mr. Sharma is required to deposit this amount within 60 days of the appellate court's order, or he can request an extension of up to 30 more days if he can show sufficient cause for the delay.

During the appeal process, the appellate court has the discretion to release the deposited funds to Mr. Gupta. However, if Mr. Sharma wins the appeal and is acquitted, the court will order Mr. Gupta to return the money to Mr. Sharma, along with interest at the current bank rate, within a specified time frame.