---
title: "Section 148 NI Act-Deposit of Minimum 20% Amount Is Not An Absolute Rule; Can Be Relaxed If Exceptional Case Is Made Out: Supreme Court"
date: 2023-10-02
author: "Durgesh Singh"
url: https://www.indialaw.in/blog/criminal/supreme-court-20-deposit-not-absolute/
---

# Section 148 NI Act-Deposit of Minimum 20% Amount Is Not An Absolute Rule; Can Be Relaxed If Exceptional Case Is Made Out: Supreme Court

Posted On - 2 October, 2023 •

By - [Durgesh Singh](https://www.indialaw.in/people/adv-durgesh-singh/ "Posts by Durgesh Singh"), [Samuel Abraham](https://www.indialaw.in/author/samuel-abraham/ "Posts by Samuel Abraham"), [Akshata Parkar](https://www.indialaw.in/author/akshata-parkar/ "Posts by Akshata Parkar") and [Abdullah Qureshi](https://www.indialaw.in/people/adv-abdullah-qureshi/ "Posts by Abdullah Qureshi")

## **INTRODUCTION**

The Division Bench of the Hon’ble Supreme Court Comprising of **Justice Abhay S. Oka and Justice Pankaj Mithal** in the matter of ***Jamboo Bhandari v. M.P State industrial Development Corporation Ltd***, has held that in Section 148 NI Act – Deposit of Minimum 20% Amount is not an Absolute Rule; if the Appellate Court comes to the conclusion that it is an exceptional case, the reasons for coming to the said conclusion must be recorded.

## **FACTUAL SUMMARY**

The appellants were accused before the Ld Judicial Magistrate who tried them on a complaint filed under section 138 of NI Act. In this case, the accused were convicted under Section 138 NI Act.

Further an appeal was preferred by the appellants before the Sessions Court.

The Appellants relied on Section 148 NI Act, the Sessions Court granted relief under Section 389 CrPC subject to condition of appellants depositing 20% of the amount of compensation.

The High Court upheld this decision of the sessions Court, citing a precedent, ***Surinder Singh Deswal Alias Colonel S.S. Deswal and Ors.***Wherein the Apex Court has held use of word “may” in Section 148 of the NI Act which has to be read as “shall” and appellate Court must ordinarily order depositing of minimum 20% of compensation or fine amount imposed by the trial Court.

Thus, the appellant filed the present appeal by Special leave petition before the Hon’ble Supreme Court.

## **CONTENTIONS OF THE PARTIES**

The learned Advocate appearing for the appellants submitted that an exception to pay compensation may be made by the appellant court.

However, the appellant court interpreted the language used in Section 148 of NI act as **“shall”** instead of **“may”** which is contrary to the provisions of section 148 of NI Act.

The submission of the learned counsel appearing for the original complainant is that neither before the Sessions Court nor before the High Court, there was a plea made by the appellants that an exception may be made in these cases and the requirement of deposit or minimum 20% of the amount be dispensed with.

The learned Counsel Appearing for the original Complainant submits that if such a prayer was not made by the appellants, there were no reasons for the Courts to consider the said plea.

## **FINDINGS OF THE SUPREME COURT**

The bench Observed the following:

The paragraph 8 of the decision of this Court in the case of *Surinder Singh Deswal Alias Colonel S.S. Deswal and Ors reads thus:*

“The, amended Section 148 of the NI Act confers power upon the appellate court to pass an order pending appeal to direct the appellant-accused to deposit the sum which shall not be less than 20% of the fine or compensation either on an application filed by the original complainant or even on the application file by the appellant-accused under Section 389 CrPC to suspend the sentence.”

That a purposive interpretation should be made of section 148 of the NI Act. Normally the Appellate Court will be justified in imposing the condition of deposit as provided in section 148.

However in cases where the Appellate Court is satisfied that the condition of deposit of 20% will be unjust or imposing such a condition will amount to deprivation of the right of appeal of the appellant, exception can be made for reasons specifically recorded.

Further the bench observed that “When an accused applies under Section 389 of the Cr.P.C. for suspension of sentence, he normally applies for grant of relief of suspension of sentence without any condition. Therefore, when a blanket order is sought by the appellants, the Court has to consider whether the case falls in exception or not.”

“In these cases, both the Sessions Courts and the High Court have proceeded on the erroneous premise that deposit of minimum 20% amount is an absolute rule which does not accommodate any exception”.

In view of the same the bench set aside the impugned orders of the High Court and directed the High Court to reconsider the case afresh.

Further, the Supreme court has directed the parties to appear before the High Court to re-examine the cases, considering the principles outlined in the judgment.

The interim order for the suspension of the sentence would continue until the High Court’s decision.

## Frequently Asked Questions

### **Is depositing a minimum 20% under Section 148 of the NI Act mandatory in every appeal?**

No. The Supreme Court held that the deposit of a minimum 20% of the compensation or fine under Section 148 of the Negotiable Instruments Act is not an absolute rule — the appellate court may dispense with it in exceptional cases.

### **When can the 20% deposit under Section 148 NI Act be waived?**

It can be relaxed where the appellate court concludes that it is an exceptional case; crucially, the court must record its reasons for arriving at that conclusion before dispensing with the deposit.

### **What did the Supreme Court hold in Jamboo Bhandari v. M.P. State Industrial Development Corporation?**

The Court clarified that while the appellate court ordinarily directs a minimum 20% deposit (as read in Surinder Singh Deswal), this is not absolute; the court retains discretion to waive the deposit in exceptional cases, provided it records reasons for doing so.

[Download PDF](https://www.indialaw.in/blog/criminal/supreme-court-20-deposit-not-absolute//pdf/)

Last Updated On - 30 June, 2026

Disclaimer - This article is intended for general informational purposes and does not constitute legal advice. Readers should seek specific legal counsel in relation to their individual circumstances.

Get IndiaLaw’s legal updates in your Google feed[![Add IndiaLaw as a preferred source on Google](https://www.indialaw.in/wp-content/uploads/google_preferred_source_badge_light_en@2x.png)](https://www.google.com/preferences/source?q=https://www.indialaw.in/)

---

# IndiaLaw LLP — Offices & Contact Details

---

## General Contact

| | |
|---|---|
| **Website** | https://www.indialaw.in |
| **Primary email** | contact@indialaw.in |
| **Primary phone** | +91 836-9995919 |
| **Contact form** | https://www.indialaw.in/connect/ |
| **Careers (separate channel)** | https://www.indialaw.in/careers/ |


---

## All Offices (9 locations across 8 cities)

### 1. Mumbai — Registered Office & Head Office (Apeejay Chambers)

| | |
|---|---|
| **Address** | Apeejay Chambers, Ground Floor, Wallace Street, Fort, Mumbai – 400 001 |
| **Phone** | [022-6924-7400](tel:02269247400) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/mumbai/ |
| **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate · IP |
| **Notes** | The HQ. 5 partners based here. Handles PAN-India litigation, arbitration, corporate, banking, IP and real estate practice. Largest team across all offices. |

### 2. Mumbai — Non-Litigation Office (Excelsior, Fort)

| | |
|---|---|
| **Address** | 4th Floor, New Excelsior Theatre Pvt. Ltd., Amrit Keshav Nayak Marg, Fort, Mumbai – 400 001 |
| **Phone** | [022-697-40500](tel:022-697-40500) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/mumbai/ |
| **Practice focus** | Non-litigation only — consultations, negotiations, transactional work |
| **Notes** | Opened 2024. Litigation and arbitration remain at the Apeejay Chambers head office. |

### 3. Delhi

| | |
|---|---|
| **Address** | Flat No. 1107 & 1108, Prakashdeep Building, Tolstoy Marg, Connaught Place, New Delhi – 110 001 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/delhi/ |
| **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate |
| **Notes** | 3 partners based here. Located near the Supreme Court of India, Delhi High Court and other appellate bodies. |

### 4. Kolkata

| | |
|---|---|
| **Address** | Centre Point Building, Room No. 214, 2nd Floor, Premises No. 21, Hemanta Basu Sarani, Opp. Great Eastern Hotel, P.S. Hare Street, Kolkata – 700 001, West Bengal |
| **Phone** | [+91 33 4813 1001](tel:+913348131001) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/kolkata/ |
| **Practice focus** | Insolvency & Bankruptcy · Commercial & Civil Litigation · Arbitration · Banking Litigation · Real Estate · Labour & Employment · Consumer |
| **Notes** | Advises banks, NBFCs, MSMEs and corporates on transactions and dispute resolution. Works in close coordination with the Mumbai HO. |

### 5. Chennai

| | |
|---|---|
| **Address** | GF-A, 19 Casa Major Road, Egmore, Chennai – 600 008 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/chennai/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Full-fledged office with experienced legal team. Supported by Mumbai HO. |

### 6. Bengaluru (Bangalore)

| | |
|---|---|
| **Address** | INDIALAW LLP, No. 7 Chinnaswamy Mudaliar Road, Shivaji Nagar, Bangalore – 560 051 |
| **Phone** | [080-4167-2444](tel:08041672444) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/bengaluru/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate · Family Laws · Labour |
| **Notes** | Located near Bangalore High Court. Handles corporate, commercial, banking and matrimonial disputes. |

### 7. Hyderabad

| | |
|---|---|
| **Address** | 403, 4th Floor, Sanatana Ecstasy Building, beside Tanishq Show Room, Himayathnagar, Hyderabad – 500 029, Telangana |
| **Phone** | [040-6666-5166](tel:04066665166) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/hyderabad/ |
| **Practice focus** | Litigation · Banking · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Particularly well known for complex banking matters and real estate transactions. |

### 8. Cochin (Kochi)

| | |
|---|---|
| **Address** | Second Floor, Pulikkal Building, K.K. Padmanabhan Road, Ernakulam North – 682 018, Kerala |
| **Phone** | [0484-3583961](tel:04843583961) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/cochin/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Commercial disputes, property litigation, financial-claim arbitrations and real estate transactions. |

### 9. Noida (NCR)

| | |
|---|---|
| **Address** | No. 16 & 17, Silver Offices, 17th Floor, Wave One, Sector 18, Noida – 201 301 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/noida/ |
| **Practice focus** | Aviation · Insurance · Mergers & Acquisitions · Corporate |
| **Office head** | **Mr. Dinesh Gupta** (joined August 2025 to lead and expand the corporate practice) |
| **Notes** | Newest office. Sector-focused on highly regulated industries serving NCR-based clients. |

---

## Quick-Dial Phone List

| Office | Phone |
|---|---|
| Mumbai HO (Apeejay) | 022-6924-7400 |
| Mumbai Excelsior | 022-697-40500 |
| Kolkata | +91 33 4813 1001 |
| Bengaluru | 080-4167-2444 |
| Hyderabad | 040-6666-5166 |
| Cochin | 0484-3583961 |
| **General / Marketing line** | **+91 836-9995919** |

Delhi, Chennai and Noida route through the general number.

---

## Social Channels

- LinkedIn: https://www.linkedin.com/company/indialaw
- X / Twitter: https://twitter.com/Indialawmumbai
- Facebook: https://www.facebook.com/indialawllp/
- Instagram: https://www.instagram.com/indialawllp

---