Punjab & Haryana HC: Bail Under NI Act Cannot Be Denied Solely For Non-Payment Of Compensation

The Punjab and Haryana High Court held that the right to bail in appeals under Section 138 NI Act cannot be denied solely because the appellant has not deposited 20% of the compensation. The Court clarified that such a condition, introduced under Section 148 NI Act, is directory and not mandatory in every case. Denying bail purely for non-payment would defeat the principle of liberty and fair trial. The judgment ensures that appellate courts adopt a balanced approach, considering the circumstances of the accused while safeguarding complainants’ rights. It reinforces judicial discretion and prevents mechanical application of compensation deposit requirements.