Navdurga Steel 20% Deposit Order Quashed

Authority: High Court of Judicature at Bombay, Criminal Appellate Jurisdiction

Order Date: 08 September 2026

Parties: Navdurga Steel Traders & Anr. (Applicants) vs M/s. Z. V. Steels Pvt. Ltd. & Anr. (Respondents).
Applications: Criminal Application No.1644 of 2026 filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita; Interim Application No.3040 of 2026.
Impugned Order: Dated 9 July 2026 by the Additional Sessions Judge, 88th Court, City Sessions Court, Mumbai, directing a stay subject to deposit of 20% compensation under Section 148 of the Negotiable Instruments Act. The order was noted as unreasoned.
Legal Precedent Cited: Supreme Court judgment in Jamboo Bhandari v. SIDC Ltd. (2023) interpreting Section 148 of the NI Act, stating that the 20% deposit requirement is not absolute and may be waived in exceptional cases, provided reasons are recorded.
Court’s Reasoning: The Additional Sessions Judge failed to record reasons for imposing the 20% deposit, rendering the order unreasoned and contrary to the Supreme Court’s guidance.

The impugned order dated 9 July 2026 is quashed and set aside.
The matter is remanded to the learned Additional Sessions Judge to pass a fresh order after granting a hearing to both parties.
The Court did not consider the merits of the 20% deposit issue; all contentions on that point remain open.
Both Criminal Application No.1644 of 2026 and Interim Application No.3040 of 2026 are disposed of.

Topics: Legal Proceedings, Negotiable Instruments Act