BACK TO NI Act 1881
NI Act 1881

Section 148

Appeal Against Conviction — Deposit of Minimum Amount

THE STATUTE

Original Text

Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), in an appeal by the drawer against conviction under section 138, the Appellate Court may order the drawer to deposit such sum which shall be a minimum of twenty per cent of the fine or compensation awarded by the trial court: Provided that the amount payable under this sub-section shall be in addition to any interim compensation paid by the drawer under section 143A. (2) The amount referred to in sub-section (1) shall be deposited within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the drawer. (3) If the Appellate Court upholds the appeal filed by the drawer and the drawer had deposited the sum under sub-section (1), the Appellate Court shall direct the complainant to repay to the drawer the sum so deposited, with interest at the bank rate as published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year, within sixty days from the date of the order, or within such further period not exceeding thirty days as may be directed by the Court on sufficient cause being shown by the complainant. (4) If the Appellate Court dismisses the appeal filed by the drawer, such amount shall be paid to the complainant by the Appellate Court.

Legal Commentary

Section 148 is the second limb of the 2018 Amendment's anti-delay mechanism (the first being Section 143A interim compensation). While Section 143A addresses delay during trial, Section 148 addresses delay at the appellate stage — where convicted accused historically filed appeals purely to delay payment, often providing complete stays of trial court orders for years. **The problem Section 148 solves:** Under the pre-2018 appellate system, a convicted accused would appeal, automatically get a stay of the fine/imprisonment, and then take years to pursue the appeal while the complainant received nothing. Section 148 introduces a financial disincentive to frivolous appeals: the convicted accused must deposit at least 20% of the trial court's fine/compensation award before the appeal can be heard. **Discretionary power:** Like Section 143A, the word 'may' makes this discretionary. The Supreme Court in Surinder Singh Deswal v. Virender Gandhi (2019) held that the power under Section 148 should ordinarily be exercised — the default position should be to order the deposit, with departure requiring specific justification. This is stronger than the trial-stage position — at appeal, there is already a conviction, making the presumption of guilt stronger. **20% — a minimum, not a ceiling:** The section prescribes 20% as the minimum — courts can order a higher deposit if the facts warrant. However, ordering more than 20% is uncommon and would typically require specific justification. **60 days to deposit (extendable to 90):** Same timeline as Section 143A — deposit within 60 days, extendable by 30 days on sufficient cause. **What happens to the deposit:** - If appeal is allowed (accused succeeds): deposit refunded to accused with RBI bank rate interest - If appeal is dismissed (accused fails): deposit paid to complainant **Addition to Section 143A:** The proviso makes clear that the 20% appeal deposit is in addition to (not a credit against) any Section 143A interim compensation already paid during trial. The accused cannot use their interim compensation payment to satisfy the appeal deposit obligation. **Sentencing credit (sub-section 4 of Section 143A applies):** The final fine/compensation is reduced by amounts already paid — this prevents double-counting.

Questions & Answers

When a convicted accused appeals against a Section 138 conviction, the appellate court may direct them to deposit a minimum of 20% of the fine or compensation awarded by the trial court. This must be paid within 60 days of the order (extendable to 90 days). The deposit acts as a condition for the appeal being heard — it is not a bail condition.
Technically discretionary ('may order'), but the Supreme Court in Surinder Singh Deswal (2019) held that it should ordinarily be ordered at appeal stage, given that there is already a conviction. Courts must record specific reasons if they choose not to order the deposit.
If the appellate court allows the appeal (acquits the accused), the deposit is refunded to the accused with interest at the RBI bank rate, within 60 days of the order.
If the appellate court dismisses the appeal (upholds the conviction), the deposit amount is paid to the complainant.
Yes. The proviso to Section 148(1) explicitly states that the 20% appeal deposit is in addition to any Section 143A interim compensation already paid during trial. The accused cannot offset interim compensation against the appeal deposit obligation.