Mr. Mohit Mathur, Sr. Adv. with Mr. H. S. Kohli, Mr. D.S. Kohli, Mr v. THE STATE GOVT. OF NCT OF DELHI AND ANR

.....Respondents Through: Mr. Satish Kumar, APP for the State Mr. Gautam Narayan, Senior Adv. with Mr. Kaustubh Prakash and Mr. Ravi Prakash Singh, Advs. for R-2. + CRL.REV.P.(NI) 160/2025, CRL.M.A. 21163/2025 & CRL.M.A. 21164/2025 AJAY KUMAR & ANR. .....Petitioners Through: Mr. Mohit Mathur, Sr. Adv. with Mr. H. S. Kohli, Mr. D.S. Kohli, Mr. Yash Kadyan and Ms. Mannat Kohli, Advs. versus THE STATE NCT OF DELHI AND ANR .....Respondents Through: Mr. Satish Kumar, APP for the State Mr. Gautam Narayan, Senior Adv. with Mr. Kaustubh Prakash and Mr. Ravi Prakash Singh, Advs. for R-2. CORAM: HON'BLE MR. JUSTICE AJAY DIGPAUL J U D G M E N T %

1. The present revision petitions have been instituted under Section 442 read with Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, assailing impugned order dated 24.05.2025 passed by the learned ASJ, Saket Courts, in connection with cases bearing C.A. nos.75-80/2025, whereby a direction was issued to the petitioner to CRL.REV.P.(NI) 149/2025 and connected matters Page 3 of 21 deposit a sum equal to 20% of the fine amount awarded in favour of the respondent by the learned Metropolitan Magistrate vide judgments of conviction and sentencing dated 16.12.2024 and 28.01.2025, respectively. Subject to the making of such deposit within 60 days, the operation of the learned Trial Court’s order of conviction was stayed, and the petitioner’s sentence was suspended - as contemplated within Section 389 of the Code of Criminal procedure, 19731. The Impugned Order

2. The respondent had invested in a real estate project and had subsequently entered into a buy-back agreement with the petitioner to the extent of 22 flats for a consideration of ₹3,78,76,866/- (of which a sum of ₹18,76,866/- was paid upfront). Per this agreement, 9 postdated cheques2 of ₹40,00,000/- each were issued to the respondent by the petitioner, whereby it was agreed between parties that each cheque was to be returned to the petitioner along with the title deeds to two flats upon actual payment of said amount.

3. The petitioner’s main contention was recorded as being that these cheques were issued as a security, and not for the discharge of any debt or liability, and they were not meant to be presented. Per contra, the respondent contended that these cheques signified a legally enforceable liability against the petitioner.

4. The petitioners contended before the learned ASJ that: a. No legally enforceable debt/liability was made out before the learned Trial Court. 1 “CrPC” hereinafter 2 “PDCs” hereinafter CRL.REV.P.(NI) 149/2025 and connected matters Page 4 of 21 b. Their written arguments were not duly considered by the learned Trial Court. c. The learned Trial Court’s judgment ran contrary to settled principles of law concerning liability/debt under Section 138 of the Negotiable Instruments Act. d. They may be exempted from making a deposit under Section 148 of the NI Act, in light of the Hon’ble Supreme Court’s decision in Jamboo Bhandari v Madhya Pradesh State Industrial Development Corporation Ltd.3

5. The learned ASJ, after recording the submissions of the petitioners and rebuttal thereagainst by the respondents, discussed the settled position of law as laid down by the Hon’ble Supreme Court; from Surender Singh Deswal @ Col. SS Deswal v Virender Gandhi4, to Jamboo Bhandari (supra) and Muskan Enterprises v State of Punjab5.

6. In this discussion, it was noted that both Surender Singh Deswal and Jamboo Bhandari were further discussed and interpreted in Muskan Enterprises, and that Muskan Enterprises is currently the prevailing law on the subject- where it was held that normally, appellate courts should lean towards requiring a deposit to be made under Section 148 of the Act, and the rationale for the same is that an order under challenge does not bear the mark of invalidity on its forehead.

7. Thereafter, the learned ASJ noted that unless, upon a plain reading of the Trial Court’s order on conviction and consequent sentence imposed, it becomes apparent that the same are wholly