Supreme Court Allows CBI Appeal in Corruption Case, Directs Payment of Balance Fine or Custody for Default Sentence. Fine is a Sentence Under Section 53 IPC and Can Be Suspended Under Section 389 CrPC, But High Court's Order Did Not Suspend Fine or Default Sentence.

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Case Note & Summary

The case involves an appeal by the Central Bureau of Investigation (CBI) against an order of the Delhi High Court suspending the sentence of the respondent, Ashok Sirpal, who was convicted for offences under Section 120B read with Sections 420/419 IPC and Sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988. The Special Judge, CBI (PC Act), Delhi, had sentenced the respondent to rigorous imprisonment for seven years and a fine of Rs.95,00,000/-, with a default sentence of 21 months simple imprisonment. The High Court suspended the substantive sentence of imprisonment on the respondent furnishing a personal bond of Rs.50,000/- with one surety, but did not expressly suspend the fine or the default sentence. The CBI appealed, arguing that the fine had not been paid and the default sentence remained enforceable. The Supreme Court examined Section 389 CrPC and Section 53 IPC, noting that fine is a form of punishment and a sentence. The Court held that while the appellate court has power to suspend the sentence of fine under Section 389 CrPC, the impugned order did not do so. The respondent had only deposited Rs.15,00,000/- out of the fine amount. The Court directed that unless the respondent deposits the balance fine of Rs.80,00,000/- within eight weeks, he must be taken into custody to serve the default sentence of 21 months. The appeal was disposed of accordingly.

Headnote

A) Criminal Procedure - Suspension of Sentence - Section 389 CrPC - Fine as Sentence - The issue was whether suspension of substantive imprisonment under Section 389 CrPC automatically suspends the sentence of fine and the default sentence for non-payment of fine. The Supreme Court held that fine is a sentence under Section 53 IPC, and the appellate court has power under Section 389(1) to suspend the execution of the sentence of fine. However, the impugned order did not expressly suspend the fine or the default sentence, and the respondent had not paid the fine. The Court directed the respondent to deposit the balance fine amount or be taken into custody to serve the default sentence. (Paras 5-10)

B) Criminal Procedure - Suspension of Sentence - Section 389 CrPC - Default Sentence - The Court clarified that the sentence in default of payment of fine is a separate sentence under Section 64 IPC. If the sentence of fine is not suspended, the default sentence can be enforced. The High Court's order suspending only the substantive imprisonment did not prevent the enforcement of the default sentence. (Paras 5-10)

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Issue of Consideration

Whether the High Court's order suspending the substantive sentence of imprisonment under Section 389 CrPC also suspends the sentence of fine and the default sentence for non-payment of fine.

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Final Decision

The Supreme Court disposed of the appeal by directing that unless the respondent deposits the balance fine amount of Rs.80,00,000/- within eight weeks from the date of the order, he shall be taken into custody to serve the default sentence of 21 months simple imprisonment. The amount already deposited of Rs.15,00,000/- shall be adjusted towards the fine. The appeal is disposed of accordingly.

Law Points

  • Fine is a sentence under Section 53 IPC
  • Sentence of fine can be suspended under Section 389 CrPC
  • Default sentence for non-payment of fine is separate and can be enforced if fine not suspended
  • Appellate court must record reasons for suspending sentence
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Case Details

2024 INSC 819

Criminal Appeal No. 4277 of 2024

2024-11-08

Abhay S. Oka

2024 INSC 819

K M Nataraj (ASG for appellant), Naidu (learner senior counsel for respondent)

Central Bureau of Investigation

Ashok Sirpal

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Nature of Litigation

Criminal appeal against order of High Court suspending sentence of imprisonment without suspending fine or default sentence.

Remedy Sought

CBI sought setting aside of the High Court's order suspending sentence and direction for respondent to pay fine or undergo default sentence.

Filing Reason

Respondent convicted for corruption and cheating, sentenced to 7 years RI and fine of Rs.95 lakhs; High Court suspended substantive sentence but not fine; CBI appealed.

Previous Decisions

Special Judge, CBI (PC Act), Delhi convicted respondent on 27.01.2016; Delhi High Court suspended sentence on 29.09.2016; Supreme Court issued notice on 19.03.2018 and recorded statement of respondent to deposit Rs.15 lakhs on 08.08.2023.

Issues

Whether the High Court's order suspending the substantive sentence of imprisonment under Section 389 CrPC also suspends the sentence of fine and the default sentence for non-payment of fine. Whether the respondent can be required to pay the balance fine or undergo the default sentence.

Submissions/Arguments

CBI argued that the impugned order did not suspend the fine or default sentence; respondent had only paid Rs.15 lakhs out of Rs.95 lakhs fine; relied on Satyendra Kumar Mehra to argue that Section 389 CrPC allows suspension of fine with conditions. Respondent argued that the entire sentence including fine was suspended; substantive sentence and default sentence are limited period sentences; appeal not likely to be heard soon.

Ratio Decidendi

Fine is a sentence under Section 53 IPC and can be suspended under Section 389 CrPC. However, the High Court's order suspending only the substantive imprisonment does not automatically suspend the fine or the default sentence. The appellate court must expressly suspend the fine sentence. If the fine is not paid and not suspended, the default sentence under Section 64 IPC can be enforced.

Judgment Excerpts

Thus, it is evident that the direction to pay a fine issued against the convicted accused is also a sentence. Therefore, there can be a sentence of fine and a further sentence in default of compliance with the sentence of fine. The appellate court while exercising power under Section 389(1) of CrPC can suspend the execution of the sentence of fine.

Procedural History

Respondent convicted by Special Judge, CBI (PC Act), Delhi on 27.01.2016; sentenced to 7 years RI and fine of Rs.95 lakhs with default sentence of 21 months. Appeal filed in Delhi High Court; High Court suspended substantive sentence on 29.09.2016. CBI appealed to Supreme Court; notice issued on 19.03.2018; on 08.08.2023, respondent undertook to deposit Rs.15 lakhs; deposited amount. Final hearing and judgment on 08.11.2024.

Acts & Sections

  • Indian Penal Code, 1860 (IPC): 53, 64, 120B, 419, 420
  • Prevention of Corruption Act, 1988: 13(1)(d), 13(2)
  • Code of Criminal Procedure, 1973 (CrPC): 357, 389
  • Bharatiya Nagarik Suraksha Sanhita, 2023: 430
  • Bharatiya Nyaya Sanhita, 2023: 4, 8(2)
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