Authority: High Court of Judicature at Bombay (Criminal Appellate Jurisdiction)

Order Date: 08 September 2026

Case Overview

  • Parties: Navdurga Steel Traders & Anr. (Applicants) vs. M/s. Z. V. Steels Pvt. Ltd. & Anr. (Respondents) and the State (Respondent‑State).
  • Application: Criminal Application No.1644 of 2026 filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 challenging the legality and validity of an order dated 9 July 2026 passed by the learned Additional Sessions Judge, 88th Court, City Sessions Court, Mumbai (the “impugned Order”).
  • Impugned Order Details: The order, digitally signed by ARJUN VITTHAL KUDHEKAR on 08‑09‑2026 20:26:21 +0530, stated that the stay was continued subject to deposit of 20 % compensation amount vide Section 148 of the Negotiable Instruments Act, and the matter was adjourned to 31‑08‑2026 for reply/hearing. The order was deemed unreasoned.
  • Legal Precedent Cited: The judgment referred to the Supreme Court decision in Jamboo Bhandari v. SIDC Ltd. (2023) SCC 446, particularly paragraphs 5‑10, which elaborate that while Section 148 NI Act uses the word “may”, it is generally to be construed as a mandatory rule unless exceptional circumstances justify waiving or reducing the 20 % deposit. The Supreme Court emphasized the need for recorded reasons when deviating from the 20 % requirement.
  • Observations: The Court noted that the Sessions Court failed to record reasons for imposing the 20 % deposit, thereby rendering the order unreasoned. It highlighted that exceptional cases may warrant waiver of the deposit, but such exceptions must be expressly recorded.

Final Outcome

  • The impugned order dated 9 July 2026 is quashed and set aside on the ground of being unreasoned.
  • The matter is remanded to the learned Additional Sessions Judge for passing a fresh order, with an opportunity of hearing to both parties.
  • The Court clarified that it has not considered the merits regarding the 20 % deposit; all contentions on that point remain open.
  • The interim application No.3040 of 2026 is disposed of, and no relief survives from it.

Topics: Legal Judgment, Negotiable Instruments Act