Case Note & Summary
The applicants/complainants filed a criminal revision against the judgment of the Judicial Magistrate First Class, Nagpur, which convicted the accused under Section 138 of the Negotiable Instruments Act for dishonour of a cheque of Rs. 80,000/-. The trial court sentenced the accused to simple imprisonment for three months and a fine of Rs. 2,000/-, with default imprisonment of 15 days. The complainants sought enhancement of compensation, arguing that the fine was inadequate. The High Court, noting that the legislative intent of Section 138 is to ensure payment of the cheque amount, held that the discretion in sentencing must be exercised judiciously. The court enhanced the fine from Rs. 2,000/- to Rs. 80,000/-, to be paid as compensation to the complainants, and in default, the accused to undergo simple imprisonment for three months. The revision was allowed.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Compensation - Section 138 - The trial court convicted the accused for dishonour of cheque of Rs. 80,000/- but imposed only a fine of Rs. 2,000/- without awarding compensation to the complainant. The High Court held that the discretion to award sentence must be exercised judiciously, keeping in view the legislative intent to protect the payee's interest. The court enhanced the fine to Rs. 80,000/- to be paid as compensation to the complainant. (Paras 1-5)
Issue of Consideration
Whether the trial court erred in not granting compensation to the complainant despite convicting the accused under Section 138 of the Negotiable Instruments Act.
Final Decision
The revision is allowed. The fine imposed by the trial court is enhanced from Rs. 2,000/- to Rs. 80,000/-. The accused shall pay Rs. 80,000/- as compensation to the complainants. In default of payment of fine, the accused shall undergo simple imprisonment for three months.
Law Points
- Compensation under Section 138 of Negotiable Instruments Act
- Judicial discretion in sentencing
- Legislative intent of Negotiable Instruments Act
Case Details
2019 LawText (BOM) (03) 149
Criminal Revision Application No. 38 of 2013
Shri A. K. Waghmare for applicants, Ms. T. H. Udeshi, APP for respondent no. 2
Mushtaq Ahmed S/o Late Alfuddin and Smt. Rehana Begum W/o Mushtaq Ahmed
Krishnakumar S/o Badriprasad Sahu and State of Maharashtra
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Nature of Litigation
Criminal revision against inadequacy of compensation in cheque dishonour conviction
Remedy Sought
Enhancement of compensation from Rs. 2,000/- to the cheque amount of Rs. 80,000/-
Filing Reason
Trial court did not grant adequate compensation despite convicting the accused under Section 138 of the Negotiable Instruments Act
Previous Decisions
Trial court convicted accused and sentenced to 3 months imprisonment and fine of Rs. 2,000/-
Issues
Whether the trial court erred in not awarding compensation to the complainant under Section 138 of the Negotiable Instruments Act?
Submissions/Arguments
Applicants argued that the trial court should have awarded compensation equal to the cheque amount as per legislative intent.
Respondent/accused did not appear to contest.
Ratio Decidendi
The discretion to award sentence under Section 138 of the Negotiable Instruments Act must be exercised judiciously, keeping in view the legislative intent to ensure payment of the cheque amount. Compensation should ordinarily be equivalent to the cheque amount to fulfill the purpose of the Act.
Judgment Excerpts
The only short point in this revision raised by the applicants/complainants is that trial Court not granted any compensation though the accused is convicted for the offence punishable under Section 138 of the Negotiable Instruments Act.
The intention of the Act is to be seen though there is discretion left to the Court while awarding sentence. Discretion be used judiciously.
Procedural History
The trial court convicted the accused under Section 138 of the Negotiable Instruments Act and sentenced him to imprisonment and fine. The complainants filed a criminal revision before the High Court seeking enhancement of compensation.
Acts & Sections
- Negotiable Instruments Act, 1881: 138
