Section 148 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 148 lets the Appellate Court order a drawer who appeals against a conviction under Section 138 to deposit a minimum of twenty per cent of the fine or compensation awarded by the trial Court. It was inserted by the Negotiable Instruments (Amendment) Act, 2018 (No. 20 of 2018). The section is not in the consolidated text consulted, so this article is based on the gazette text of the 2018 Act.
In an appeal by the drawer against conviction under Section 138, the Appellate Court may order the appellant to deposit a sum which shall be a minimum of twenty per cent of the fine or compensation awarded by the trial Court. That amount is in addition to any interim compensation paid under Section 143A. It is deposited within sixty days of the order, or within a further period not exceeding thirty days if the Court allows on sufficient cause. The Appellate Court may direct release to the complainant during the appeal; if the appellant is acquitted, the complainant must repay with interest at the bank rate. Commencement is by notification; the date is not in the text consulted.
Source and commencement
The 2018 Act has three sections: a short title and commencement section, a section inserting Section 143A, and a section inserting Section 148. Section 1(2) of that Act says it comes into force on a date the Central Government appoints by notification in the Official Gazette. Commencement is by notification; the date is not in the text consulted, and this article gives none. The gazette shows assent on 2 August 2018, and nothing later is in the sources.
The section opens "Notwithstanding anything contained in the Code of Criminal Procedure, 1973". The text refers to that Code; the reader should check the current procedural law for the corresponding provisions. Nothing about law after the 2018 gazette is covered here. A note on spelling: the Act writes "indorse"; "endorse" is the common spelling.
Where Section 148 fits
Section 148 follows Section 147 in the Act. It concerns the appeal stage after conviction under Section 138. The earlier stage, interim compensation during the trial, is under Section 143A, which has its own post: interim compensation under Section 143A. That section is not explained again here. If you are a convicted drawer considering an appeal, or a complainant whose case is on appeal, a legal dispute resolution adviser can help you plan for the deposit.
Section 148(1): the deposit and its proviso
The text: "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 twenty per cent. of the fine or compensation awarded by the trial Court".
Elements:
- Who. The drawer, who is the appellant against a conviction under Section 138.
- Who orders. The Appellate Court. The word is "may", so the order is within its power and not automatic.
- How much. "Such sum which shall be a minimum of twenty per cent. of the fine or compensation awarded by the trial Court". Twenty per cent is a floor ("a minimum"); the text does not set a ceiling.
- Of what. The fine or compensation awarded by the trial Court.
The proviso. "Provided that the amount payable under this sub-section shall be in addition to any interim compensation paid by the appellant under section 143A." So the deposit is on top of any interim compensation the drawer already paid under Section 143A. The text does not say how the two interact beyond "in addition".
Section 148(2): time for deposit
The text: "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 appellant."
- Sixty days from the date of the order.
- A further period not exceeding thirty days may be allowed by the Court on sufficient cause shown by the appellant.
The text does not say where the amount is to be deposited or what happens on default.
Section 148(3): release, and repayment on acquittal
The text: "The Appellate Court may direct the release of the amount deposited by the appellant to the complainant at any time during the pendency of the appeal".
The release is discretionary ("may") and may be directed "at any time during the pendency of the appeal".
The proviso. "Provided that if the appellant is acquitted, the Court shall direct the complainant to repay to the appellant the amount so released, 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."
If the appellant is acquitted, the Court "shall" direct the complainant to repay the amount released, with interest at the bank rate published by the Reserve Bank of India prevalent at the beginning of the relevant financial year. The time for repayment is sixty days from the order, extendable by not more than thirty days on sufficient cause shown by the complainant. The text gives no percentage for the bank rate and none is given here.
Summary table
| Sub-section | Rule | Time |
|---|---|---|
| 148(1) | Appellate Court may order the appellant to deposit a minimum of twenty per cent of the fine or compensation awarded by the trial Court | |
| 148(1) proviso | Amount is in addition to any interim compensation paid under Section 143A | |
| 148(2) | Deposit | Within sixty days of the order; further period not exceeding thirty days on sufficient cause shown by the appellant |
| 148(3) | Appellate Court may direct release of the deposit to the complainant during the appeal | At any time during the pendency of the appeal |
| 148(3) proviso | If the appellant is acquitted, complainant repays the released amount with interest at the bank rate published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year | Within sixty days of the order; further period not exceeding thirty days on sufficient cause shown by the complainant |
A worked example
Example. Rakesh Motors is convicted under Section 138 and the trial Court awards a fine of Rs. 1,00,000 (an invented figure). Rakesh Motors appeals. The Appellate Court orders it to deposit a minimum of twenty per cent of that sum, Rs. 20,000, under Section 148(1). Rakesh Motors had earlier paid interim compensation under Section 143A; the deposit is in addition to that amount, by the proviso. It must deposit within sixty days of the order, or a further period not exceeding thirty days if it shows sufficient cause (sub-section (2)). During the appeal the Appellate Court directs release of the deposit to the complainant, Sanjay Distributors (sub-section (3)). If Rakesh Motors is later acquitted, the Court shall direct Sanjay Distributors to repay the released amount with interest at the bank rate published by the Reserve Bank of India, prevalent at the beginning of the relevant financial year, within the periods in the proviso.
Points to watch
- "Minimum". The text sets a floor of twenty per cent. It does not cap the amount.
- Fine or compensation. The base is the fine or compensation "awarded by the trial Court".
- Addition to interim compensation. The proviso says the deposit comes on top of what was paid under Section 143A.
- Release is discretionary. The Appellate Court "may" direct release, and the text says "at any time during the pendency of the appeal".
- Repayment on acquittal. The Court "shall" direct repayment with interest at the bank rate. The rate itself is not stated in the text.
- Not stated. The text does not say where the deposit is made, what happens on default, or how the appeal proceeds.
- Check current procedure. The reference to the Code of Criminal Procedure, 1973 is quoted as printed.
Need help with an appeal?
An order to deposit has a clock of its own, and a missed date can affect the appeal. If you are the appellant or the complainant, a legal dispute resolution review of the order and the dates can help you plan what must be done and by when.
Key takeaways
- Section 148 was inserted by the Negotiable Instruments (Amendment) Act, 2018; commencement is by notification and the date is not in the text consulted.
- In an appeal by the drawer against conviction under Section 138, the Appellate Court may order a deposit of a minimum of twenty per cent of the fine or compensation awarded by the trial Court.
- The deposit is in addition to any interim compensation paid under Section 143A.
- Deposit within sixty days, with a further period of up to thirty days on sufficient cause.
- The Appellate Court may release the amount to the complainant; on acquittal the complainant repays with interest at the bank rate published by the Reserve Bank of India.
Read next
- Section 147: cheque bounce offence is compoundable
- Interim compensation under Section 143A
- Section 138: cheque bounce (dishonour of cheque)
- Cheque bounce penalty guide
Disclaimer: Based on a consolidated text of the Negotiable Instruments Act, 1881 stating the position as of 26 December 2015 and on the Negotiable Instruments (Amendment) Act, 2018, as consulted on 2 October 2026. Later amendments and current criminal procedure law should be checked. This article is general information, not legal advice; check the official text before acting.