#Financial hardship exception

The Andhra Pradesh High Court has ruled that courts may reduce the mandatory 20% deposit under Section 148 of the Negotiable Instruments Act to 10% when the accused demonstrates compelling financial distress and serious health conditions that impair livelihood. This sets a precedent for judicial discretion in cheque bounce cases, balancing creditor rights with constitutional protections against disproportionate hardship.

The Andhra Pradesh High Court has ruled that courts may reduce the mandatory 20% deposit under Section 528 BNSS to 10% when an accused demonstrates compelling financial distress and serious medical conditions, setting a precedent for equitable relief in non-violent economic offences. This shifts the rigid application of deposit conditions toward proportionality and personal circumstance, benefiting indigent accused in NI Act cases nationwide.