#NI Act appeal

The Kerala High Court has ruled that appellate courts cannot mechanically reject requests to waive the statutory deposit under Section 148 of the Negotiable Instruments Act without explaining how exceptional circumstances - such as advanced age, illness, or absence abroad - fail to justify relief. This sets a mandatory standard for judicial accountability in cheque bounce cases, protecting vulnerable accused from disproportionate financial burdens during appeal.

The Telangana High Court has capped the mandatory deposit for appeals under Section 148 of the Negotiable Instruments Act at 10% of the compensation amount, overturning the lower court’s 20% order. This aligns with Supreme Court precedent and ensures that higher deposits require reasoned justification, protecting accused persons from disproportionate financial burdens during appellate stays.

The Punjab & Haryana High Court ruled that appellate courts must record specific reasons when denying a waiver of the 20% deposit condition under Section 148 of the NI Act. The Court emphasized that financial hardship constitutes a valid ground for waiver, reinforcing the right to appeal without arbitrary financial barriers.