- 1 - NC: 2025:KHC:15501 CRL.P No. 8871 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 8871 OF 2024 BETWEEN: SRI. JAGADISH SHETTY H.S, S/O D. SADHU SHETTY, AGED ABOUT 56 YEARS R/AT NO. 22, 1ST A MAIN, SAMRAT LAYOUT, NEAR ANJANEYA TEMPLE, ARAKERE, B.G. ROAD, BANGALORE - 560 076. ADDRESS WRONGLY MENTIONED IN THE COMPLAINT IN CC NO. 10114/2022, BEFORE THE TRIAL COURT AS C/O RUCHI CATERING, NO. 78/2A, AREKERE, JAI HANUMAN NAGAR, 1ST AND 2ND CROSS, BTM 6TH STAGE, BANNERGHATTA ROAD, BANGALORE - 560 076. …PETITIONER (BY SRI. RAGHAVENDRA K, ADVOCATE) AND: THE AISIRI CO-OPERATIVE SOCIETY LIMITED, REGISTERED OFFICE AT NO 82, 1ST MAIN, 1ST CROSS, VYSYA BANK COLONY, BTM 2ND STAGE, BANGALORE - 560 076. EARLIER REP. BY ITS PRESIDENT, SRI. Y. UMANATH SHETTY. NOW REP. BY ITS PRESIDENT SRI. A. KARUNAKARA HEGDE. …RESPONDENT (BY SRI. CHANDRASHEKAR P. PATIL, ADVOCATE) Digitally signed by R HEMALATHA Location: High Court of Karnataka - 2 - NC: 2025:KHC:15501 CRL.P No. 8871 of 2024 THIS CRL.P IS FILED U/S.482(FILED U/S.528 BNNS) OF CR.P.C PRAYING TO SET ASIDE THE IMPUGNED ORDER (ANNEXURE A) DATED 08.07.2024 PASSED BY HONBLE LXVIII ADDITIONAL CITY CIVIL AND SESSIONS JUDGE AT BENGALURU (CCH-69) IN CRL.A.NO.1124/2024 AND THEREBY ALLOW I.A.NO.1 FILED BY THE PETITIONER U/S.389(1) OF THE CRPC FOR SUSPENSION OF SENTENCE WITHOUT CONDITIONS FOR DEPOSIT OF 20 PERCENT AMOUNT BEFORE THE TRIAL COURT. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR ORAL ORDER 1. The petitioner, who has been convicted for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881, is before this Court challenging the order passed by the Appellate Court, whereby the sentence was suspended subject to the petitioner depositing 20% of the compensation amount. 2. Heard the learned counsel for the parties and perused the material on record. 3. The petitioner has been convicted for the offence punishable under Section 138 of the N.I. Act and sentenced to pay a compensation amount of Rs.50,00,000/-. The petitioner filed an application under Section 389(1) of the Cr.P.C. seeking suspension of the sentence. The learned Sessions Court allowed the application, subject to the petitioner depositing 20% of the compensation amount awarded by the Trial Court. - 3 - NC: 2025:KHC:15501 CRL.P No. 8871 of 2024 4. Section 148 of the N.I. Act provides that, notwithstanding anything contained in the Code of Criminal Procedure, 1973, in an appeal by the drawer against conviction under Section 138, the Appellate Court may order the appellant to deposit such sum, which shall be a minimum of 20% of the fine or compensation awarded by the Trial Court. 5. In the present case, the learned Sessions Court has not assigned any reasons for directing the petitioner to deposit 20% of the compensation amount for the suspension of sentence. 6. The Hon’ble Apex Court, in the case of Jamboo Bhandari v. M.P. State Industrial Development Corporation Ltd. & Ors., reported in (2023) 10 SCC 446, has held that such deposit may not be ordered if the Appellate Court finds the case to be exceptional and records reasons for not directing the deposit. 7. In the present case, the Appellate Court, without assigning any reasons, directed the petitioner to deposit 20% of the compensation amount. The said order is contrary to the provisions of Section 148 of the N.I. Act and the legal principles laid down by the Hon’ble Apex Court. Accordingly, the same is not sustainable in law. 8. Hence, I pass the following: ORDER i. Criminal Petition is allowed. - 4 - NC: 2025:KHC:15501 CRL.P No. 8871 of 2024 ii. The impugned proceedings dated 08.07.2024 passed by the LXVIII Additional City Civil and Sessions Judge, Bangalore in Crl.A.No.1124/2024 is hereby set aside and the learned Sessions Court is directed to reconsider the application afresh in accordance with law. Sd/- (HEMANT CHANDANGOUDAR) JUDGE RKA List No.: 1 Sl No.: 63 CT: BHK