HC opines that the time provided for paying compensation under Section 148 is 60 days

 

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The Delhi High Court has expounded that the time provided to pay compensation payable under Section 148 Negotiable Instruments Act, 1881 (hereinafter referred to as “NIA”) is 60 days and not mere 15 days. 

Brief Facts: 

The case of the Petitioner is that he was convicted for the offence of Section 138 NIA and was sentenced for a period of 1 year. The Petitioner was also directed to pay compensation to the Complainant within 30 days from the date of passing of the said order. It is against this order that the Petitioner has filed the present application. 

Contentions of the Petitioner: 

The Petitioner is specifically aggrieved against the direction for deposit of 20% compensation amount. It is alleged by the Petitioner that the amount as per Section 148(3) NIA has to be deposited within 60 days or within such further period of not exceeding 30 days. It is also contended that the mere non-deposit of said compensation amount cannot be a reason for closing the opportunity to address arguments. 

Observations of the Court: 

The Court looked at the object and purpose of Section 148 NIA and opined that this provision ensured that no dilatory tactics are adopted by the drawers of dishonored cheques, due to easy filing of appeals and stays and thereby, frustrating Section 138 NIA proceedings.   

Having said that, the High Court remarked that even though the Learned Appellate Court was right in directing the deposit of 20% compensation amount, the time given for the same should have been 60 days and not 15 days.  

With respect to the closing of arguments, the Court observed that since the first appeal is required to be decided on merits, it is not legally correct to close the opportunity to address the arguments. 

Decision of the Court: 

Therefore, the Delhi High Court directed the Petitioner to deposit the said amount within 60 days instead of 15 and in case of failure to do the same, consequences under Section 148 NIA would follow. 

Cause Title: Naval Kishore Bilunia v. State of NCT of Delhi & Anr. 

Bench: Hon’ble Mr. Justice Anoop Kumar Mendiratta 

Decided on: November 04^th, 2022  

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(With input from news agency language)

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