Section 148 of the Negotiable Instruments Act, 1881, inserted in 2018, empowers Appellate Courts to order a convicted person (drawer) to deposit a minimum of 20% of the fine or compensation awarded by the Trial Court. This applies during an appeal against a conviction in a check dishonour case (Section 138), acting as a mandatory condition to suspend the sentence, aimed at curbing delayed justice. [1, 2, 3, 4, 5] 

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Key Aspects of Section 148 NI Act:

• Purpose: To provide interim relief to the complainant (payee) and prevent drawers from using appeals to delay payment.
• Amount: The appellate court can order a deposit of a minimum of 20% of the compensation/fine, not exceeding 20% generally.
• Timeline: The amount must be deposited within 60 days, extendable by another 30 days, from the date of the order.
• Discretion: While the 20% is generally mandated, the Supreme Court has clarified that the appellate court has the discretion to set the amount, but if it decides to mandate a deposit, it must be at least 20%, according to discussions on [SCC Online 11
.
• Exceptions: Recent rulings suggest this, as noted on [SCC Online 14
, may not be strictly applied to signatories who are not the direct “drawer” of the check in certain company scenarios.

The deposited amount can be released to the complainant during the pendency of the appeal. [1] 

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[1] https://www.taxmann.com/research/fema-banking-insurance/top-story/105010000000016716/is-newly-added-section-148-of-the-negotiable-instruments-act-applicable-to-pending-cases-experts-opinion
[2] https://bombayhighcourt.nic.in/generatenewauth.php?bhcpar=cGF0aD0uL3dyaXRlcmVhZGRhdGEvZGF0YS9qdWRnZW1lbnRzLzIwMjUvJmZuYW1lPTIzMDgwMDAwOTUwMjAyNV83LnBkZiZzbWZsYWc9TiZyanVkZGF0ZT0mdXBsb2FkZHQ9MTQvMTAvMjAyNSZzcGFzc3BocmFzZT0xNTEwMjUyMzQ2MDcmbmNpdGF0aW9uPTIwMjU6QkhDLUFTOjQ0NjM1JnNtY2l0YXRpb249JmRpZ2NlcnRmbGc9WSZpbnRlcmZhY2U9Tw%3D%3D
[3] https://dpal.karnataka.gov.in/storage/pdf-files/The%20Negotiable%20Instruments%20(Amendment)%20Act,%202018%20No%2020%20of%202018.pdf
[4] https://indiankanoon.org/doc/41911326/
[5] https://www.scconline.com/blog/post/2025/10/13/20-percent-compensation-deposit-u-s-148-ni-act-not-absolute-rule-guj-hc/