NARENDRA SINGH DHADDHA,J. - (1.) This matter has been directly filed before the Division Bench on account of challenge to the notification dated 02.08.2018 by which Sections 143A and 148 were inserted in the Negotiable Instruments Act, 1881 by promulgating the Negotiable Instruments (Amendment) Act, 2018 and the subsequent notification dated 16.08.2018 by which the Central Government in exercise of its powers conferred by sub-section (2) of section 1 of the Negotiable Instruments (Amendment) Act, 2018, appointed 1st of September, 2018, as the date on which the provisions of the said Act shall come into force. Validity of both these notifications inasmuch the provisions of Sections 143A and 148 of the Negotiable Instruments Act, 1881 have already been tested by the Supreme Court in two separate judgments.
(2.) The Supreme Court in Surinder Singh Deswal @ Col S.S. Deswal and Ors. Vs. Virender Gandhi, Criminal Appeal Nos.917-944 of 2019 vide judgment dated 29.5.2019 has upheld the validity of Section 148 and as held that this provision has to be read as a whole with the statement of object of reasons of the amending Section. In para 8.1, the Supreme Court has held as under:- "8.1. Having observed and found that because of the delay tactics of unscrupulous drawers of dishonoured cheques due to easy filing of appeals and obtaining stay on proceedings, the object and purpose of the enactment of Section 138 of the N.I. Act was being frustrated, the Parliament has thought it fit to amend Section 148 of the N.I. Act, by which the first appellate Court, in an appeal challenging the order of conviction Under Section 138 of the N.I. Act, is conferred with the power to direct the convicted Accused - Appellant to deposit such sum which shall be a minimum of 20% of the fine or compensation awarded by the trial Court. By the amendment in Section 148 of the N.I. Act, it cannot be said that any vested right of appeal of the Accused - Appellant has been taken away and/or affected. Therefore, submission on behalf of the Appellants that amendment in Section 148 of the N.I. Act shall not be made applicable retrospectively and more particularly with respect to cases/complaints filed prior to 1.9.2018 shall not be applicable has no substance and cannot be accepted, as by amendment in Section 148 of the N.I. Act, no substantive right of appeal has been taken away and/or affected. Therefore the decisions of this Court in the cases of Garikapatti Veeraya (supra) and Videocon International Limited (supra), relied upon by the learned senior Counsel appearing on behalf of the Appellants shall not be applicable to the facts of the case on hand. Therefore, considering the Statement of Objects and Reasons of the amendment in Section 148 of the N.I. Act stated hereinabove, on purposive interpretation of Section 148 of the N.I. Act as amended, we are of the opinion that Section 148 of the N.I. Act as amended, shall be applicable in respect of the appeals against the order of conviction and sentence for the offence Under Section 138 of the N.I. Act, even in a case where the criminal complaints for the offence Under Section 138 of the N.I. Act were filed prior to amendment Act No. 20/2018 i.e., prior to 01.09.2018. If such a purposive interpretation is not adopted, in that case, the object and purpose of amendment in Section 148 of the N.I. Act would be frustrated. Therefore, as such, no error has been committed by the learned first appellate court directing the Appellants to deposit 25% of the amount of fine/compensation as imposed by the learned trial Court considering Section 148 of the N.I. Act, as amended."
(3.) In view of above, the Supreme Court has held that Section 148 of the N.I. Act as amended, shall apply in respect of the appeals against the orders of conviction and sentence for the offence under Section 138 of the N.I. Act, even in cases where the criminal complaints for the offence under Section 138 of the N.I. Act were filed prior to amendment Act i.e. prior to 01.09.2018.;