Short answer: if you have been convicted under Section 138 of the Negotiable Instruments Act, 1881, you can appeal to the Court of Session within 30 days of the sentence. The appellate court will usually order you to deposit a minimum of 20% of the fine or compensation awarded by the trial court under Section 148 NI Act — payable within 60 days — before it hears the appeal, and it can suspend your sentence and release you on bail under Section 430 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023 while the appeal is pending. The 20% deposit is the norm, not an absolute rule: it can be waived or reduced in genuinely exceptional cases for reasons recorded in writing.
This page is for the drawer (the accused) who has just been convicted and wants to know exactly what an appeal involves — the forum, the deadline, the money, and the bail — before the trial court's sentence starts running. If you are still at the notice stage or the trial stage, start with the full Section 138 cheque-bounce procedure and time limits instead.
Section 148 NI Act, in one sentence: in an appeal against a Section 138 conviction, the appellate court may order the appellant-drawer to deposit a sum that shall not be less than 20% of the fine or compensation awarded by the trial court, and this deposit is over and above any interim compensation already paid under Section 143A.
Appeal roadmap at a glance
| Step | What happens | Key number / source |
|---|---|---|
| Forum | Appeal from a Magistrate's Section 138 conviction lies to the Court of Session | Ch. XXXI, BNSS 2023 |
| Limitation | File within 30 days of the date of sentence (Sessions appeal) | Art. 115, Limitation Act 1963 |
| Deposit | Minimum 20% of fine/compensation under Section 148 | NI Act 1881, s.148 |
| Deposit window | 60 days from the order (+30 days for sufficient cause) | s.148(2) |
| Suspension of sentence + bail | Court may suspend sentence and grant bail pending appeal | BNSS s.430 |
| Deposit release | Court may release the deposit to the complainant during the appeal | s.148(3) |
Where and when do you file the appeal?
A Section 138 case is tried by a Judicial Magistrate, so an appeal against that conviction goes to the Court of Session for the district. The limitation period for a criminal appeal to the Court of Session is 30 days from the date of the sentence (Article 115 of the Limitation Act, 1963). If you miss it, you must file an application to condone the delay under Section 5 of the Limitation Act with a genuine explanation — courts are cautious but not closed to it.
The appeal is presented as a memorandum of appeal signed by the appellant or the advocate, accompanied by a certified copy of the judgment and the order of sentence. Court fee on a criminal appeal is nominal (a fixed stamp, typically a few hundred rupees), unlike the ad valorem fee in civil recovery suits.
The Section 148 deposit: is 20% mandatory?
This is the question that decides whether most convicts can realistically appeal. Section 148 was inserted by the 2018 amendment to plug a gap: drawers were being convicted, filing appeals, obtaining automatic stays, and dragging out payment for years. The provision gives the appellate court power to make the appellant deposit at least 20% of the trial court's fine or compensation as a condition of the appeal.
The leading authorities read together give the practical rule:
- Surinder Singh Deswal v. Virender Gandhi, (2019) 11 SCC 341 — the Supreme Court (M.R. Shah and A.S. Bopanna JJ., 29 May 2019) held that the 20% deposit is normally to be imposed; the word "may" in Section 148 must be read purposively so that deposit is the rule, and the provision applies even to appeals in cases where the complaint was filed before the 2018 amendment. Read the report on Digi SCR (official Supreme Court Reports).
- Jamboo Bhandari v. M.P. State Industrial Development Corporation Ltd, 2023 INSC 822 (also 2023 LiveLaw (SC) 776, 4 September 2023) — the Court clarified that the deposit is not an absolute rule. Where the appellate court is satisfied that a 20% deposit would be unjust, or would in effect deprive the appellant of the right of appeal, it may make an exception for reasons specifically recorded in writing. See the judgment on Indian Kanoon and LiveLaw's report.
- Muskan Enterprises v. State of Punjab, 2024 INSC 1046 — the Supreme Court reaffirmed that the appellate court has discretion not to order the 20% deposit in appropriate and exceptional cases. Reported by Verdictum.
The current position, stated plainly: the Section 148 deposit of a minimum of 20% is the default a Sessions Court will impose, but it retains a narrow discretion to reduce or waive it in exceptional cases, and it must record specific reasons whenever it departs from the norm.
One live open question worth knowing: in December 2025 the Supreme Court referred to a larger bench the issue of whether the appellate deposit can be directed against a convicted director personally, or only against the juristic drawer (the company) — so the position for individual directors of a convicted company may shift (SCC Online, Dec 2025).
How do you get the 20% deposit reduced or waived?
You cannot simply ask; you must build the exceptional case that Jamboo Bhandari contemplates. In practice, an application for waiver or reduction under Section 148 succeeds only where the appellant places concrete material on record showing that the deposit would be genuinely onerous — for example, documented insolvency, attachment of assets, medical or family circumstances, or a strong prima facie defence that the conviction is perverse. A bald plea of hardship without evidence almost always fails. The order granting relief must record specific reasons; an order that mechanically waives (or mechanically imposes) the deposit without reasons is itself open to challenge.
Suspension of sentence and bail during the appeal
Filing an appeal does not automatically stop the sentence. You must apply for suspension of sentence and bail under Section 430 of the BNSS, 2023 (the successor to Section 389 CrPC). Section 430 empowers the appellate court, for reasons recorded in writing, to suspend the execution of the sentence and release the appellant on bail while the appeal is pending. Where the sentence does not exceed three years (or the offence is bailable), the convicting court itself can grant bail so that the appeal can be filed. Read the provision on Indian Kanoon. Because a Section 138 sentence rarely exceeds two years, suspension of sentence and bail pending appeal is routinely granted — but the deposit condition under Section 148 is separate and still applies.
What happens to the money you deposit?
The deposit is not a court fee that disappears. Under Section 148(3), the appellate court may direct that the deposited amount be released to the complainant during the pendency of the appeal. If you ultimately win — the conviction is set aside — the complainant must repay the amount with interest at the bank rate as prevailing at the beginning of the relevant quarter. So the 20% is best understood as a secured advance against the compensation, not a penalty.
Documents you need for the appeal
- Certified copy of the trial court's judgment and the separate order of sentence
- Memorandum of appeal setting out the grounds (errors of law/fact, sentence excessive, defence not appreciated)
- Vakalatnama for the appellate advocate
- Application under Section 430 BNSS for suspension of sentence and bail
- Application under Section 148 for waiver/reduction of deposit, if you are seeking one, with supporting financial documents
- Proof of the deposit once made (or the bank challan), to be filed within the 60-day window
How long does it take, and what does it cost?
The court fee for the appeal is nominal. The real financial exposure is the 20% deposit — on a typical order of compensation equal to the cheque amount, that is 20% of the cheque value, payable within 60 days. Timelines vary by district, but a Sessions appeal in a cheque-bounce matter commonly takes several months to a couple of years to reach final hearing; interim bail and suspension of sentence are usually decided within the first few hearings. If the conviction is upheld, note that a conviction can still be compounded at the appellate or even post-conviction stage — see our guide to compounding a Section 138 conviction, which is often the faster commercial exit than fighting the appeal to the end.
When do you need an advocate, and when can you do it yourself?
An appeal against a criminal conviction is not a DIY matter. Framing appealable grounds, arguing a Section 148 waiver on Jamboo Bhandari, and moving for suspension of sentence under BNSS 430 all require an advocate. Where a litigant-in-person or a junior can add value is in preparing — pulling the exact statutory text, the controlling Supreme Court citations, and a clean chronology before the first conference — so that advocate time is spent on strategy, not on research. If you are the one who received the notice in the first place, review how the drawer replies to a cheque-bounce legal notice to see where the defence should have been built.
How Urava helps
Urava turns a question like "can the 20% deposit under Section 148 be waived, and how do I frame it" into a court-ready, citation-backed research memorandum — with the statute, the controlling judgments (Surinder Singh Deswal, Jamboo Bhandari, Muskan Enterprises), and the procedural steps laid out — in about ten minutes, over WhatsApp, in English, Hindi or Malayalam. Every citation is source-grounded and verifiable, not recalled from memory. You still argue the case; Urava does the reading. Start free with three researches.
Frequently Asked Questions
Can I appeal a cheque bounce conviction without paying the 20% deposit?
You can file the appeal, but the appellate court will ordinarily require a deposit of at least 20% of the fine or compensation under Section 148 NI Act as a condition for hearing it. Waiver is possible only in exceptional cases where you prove, with evidence, that the deposit would be unjust or would defeat your right to appeal, and the court records specific reasons (Jamboo Bhandari, 2023 INSC 822).
How long do I have to appeal a Section 138 conviction?
The limitation period for an appeal to the Court of Session against a Magistrate's conviction is 30 days from the date of the sentence, under Article 115 of the Limitation Act, 1963. If you miss it, you must file a delay-condonation application under Section 5 with a genuine explanation; there is no guaranteed relief, so file promptly.
Will I go to jail while my cheque bounce appeal is pending?
Usually no. You can apply under Section 430 BNSS, 2023 for suspension of sentence and bail pending appeal. Because Section 138 sentences rarely exceed two years, suspension and bail are commonly granted early in the appeal, though the separate Section 148 deposit condition still applies.
Do I get the 20% deposit back if I win the appeal?
Yes. If the court released the deposit to the complainant during the appeal and your conviction is later set aside, the complainant must repay the amount with interest at the prevailing bank rate under Section 148(3). The deposit is a secured advance against compensation, not a forfeiture.
Can a director be made to pay the deposit personally?
As of December 2025, the Supreme Court has referred to a larger bench the question of whether the Section 148 appellate deposit can be directed against a convicted director personally or only against the company as the juristic drawer. Until that is settled, the position for individual directors of a convicted company is unsettled — check the current status before assuming personal liability for the deposit.
Is the Section 148 deposit the same as interim compensation under Section 143A?
No. Section 143A interim compensation is ordered during the trial and is discretionary (Rakesh Ranjan Shrivastava v. State of Jharkhand, 2024 INSC 205). The Section 148 deposit is a separate, post-conviction condition of appeal, and it is expressly in addition to any interim compensation already paid under Section 143A.