Bombay High Court Quashes Condition of Pre-deposit in NI Act Appeal — Suspension of Sentence Cannot Be Burdened with Onerous Condition of Depositing 50% Compensation. The court held that the appellate court's condition requiring deposit of 50% compensation while suspending sentence under Section 389 CrPC is contrary to law and set aside the condition.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Suresh Hiralal Barwal, was convicted under Section 138 of the Negotiable Instruments Act, 1881, by the learned Magistrate and sentenced to one year rigorous imprisonment and directed to pay compensation of Rs. 4,00,000 to the complainant, Kamalnarayan Jaiswal. Aggrieved, the petitioner filed an appeal before the Sessions Court. The learned Additional Sessions Judge admitted the appeal and suspended the substantive sentence on condition that the petitioner deposit 50% of the compensation amount within two months from the order dated 23.7.2013. The petitioner challenged this condition by filing a criminal writ petition under Article 227 of the Constitution before the Bombay High Court, Aurangabad Bench. The petitioner argued that the condition was unjustified and contrary to the Supreme Court's decision in Dilip Dahanukar v. Kotak Mahindra Co. Ltd., which held that while suspending sentence, the appellate court cannot impose a condition of pre-deposit of compensation. The High Court agreed, noting that the learned Additional Sessions Judge had imposed the condition despite being aware of the Supreme Court's ruling, citing the petitioner's conduct during trial and refusal to accept statutory notice. The High Court held that such a condition is not permissible under Section 389 CrPC and set aside the condition, directing the appellate court to proceed with the appeal without insisting on the deposit.

Headnote

A) Criminal Procedure Code - Suspension of Sentence - Section 389 CrPC - Condition of Pre-deposit - The appellate court while suspending sentence under Section 389 CrPC cannot impose a condition requiring the accused to deposit 50% of the compensation amount awarded under Section 357 CrPC, as such condition is not warranted by law and is contrary to the principles laid down by the Supreme Court in Dilip Dahanukar v. Kotak Mahindra Co. Ltd. (2007) 2 B Cr C 472 (SC). The court held that the condition was unjustified and set it aside. (Paras 5-6)

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Issue of Consideration

Whether the appellate court can impose a condition of depositing 50% of the compensation amount while suspending the substantive sentence under Section 389 CrPC in a conviction under Section 138 of the Negotiable Instruments Act, 1881.

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Final Decision

The High Court allowed the petition, set aside the condition imposed by the learned Additional Sessions Judge requiring the petitioner to deposit 50% of the compensation amount, and directed the appellate court to proceed with the appeal without insisting on such deposit.

Law Points

  • Suspension of sentence under Section 389 CrPC cannot be conditioned on pre-deposit of compensation in NI Act cases
  • Dilip Dahanukar v. Kotak Mahindra Co. Ltd. followed
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Case Details

2013 LawText (BOM) (09) 37

Criminal Writ Petition No. 703 of 2013

2013-09-06

Abhay M. Thipsay

Mr. Garud V.B. for petitioner, Mr. K.S. Patil APP for respondent no.1

Suresh Hiralal Barwal

The State of Maharashtra and Kamalnarayan s/o Kanhayalal Jaiswal

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Nature of Litigation

Criminal writ petition challenging the condition imposed by the appellate court while suspending sentence in a cheque dishonour case.

Remedy Sought

Petitioner sought quashing of the condition requiring deposit of 50% of compensation amount as a condition for suspension of sentence.

Filing Reason

The petitioner was convicted under Section 138 NI Act and sentenced to one year RI and compensation of Rs. 4,00,000. The appellate court suspended sentence on condition of depositing 50% compensation, which the petitioner challenged as illegal.

Previous Decisions

The trial court convicted the petitioner; the appellate court admitted appeal and suspended sentence subject to condition of depositing 50% compensation.

Issues

Whether the appellate court can impose a condition of depositing 50% of the compensation amount while suspending the substantive sentence under Section 389 CrPC in a conviction under Section 138 of the Negotiable Instruments Act, 1881.

Submissions/Arguments

Petitioner argued that the condition to deposit 50% compensation is unjustified and contrary to the Supreme Court's decision in Dilip Dahanukar v. Kotak Mahindra Co. Ltd. The State/respondent did not oppose the petition; the matter was decided by consent.

Ratio Decidendi

While suspending sentence under Section 389 CrPC, the appellate court cannot impose a condition of pre-deposit of compensation awarded under Section 357 CrPC, as such condition is not warranted by law and is contrary to the principles laid down by the Supreme Court in Dilip Dahanukar v. Kotak Mahindra Co. Ltd.

Judgment Excerpts

I find that the learned Additional Sessions Judge was of the view that the conduct of the petitioner during the trial was not proper. The condition to deposit 50% of the compensation is totally unjustified and contrary to various pronouncements of the Supreme Court of India.

Procedural History

The petitioner was convicted by the Magistrate under Section 138 NI Act and sentenced to one year RI and compensation of Rs. 4,00,000. He appealed to the Sessions Court, which admitted the appeal and suspended sentence on condition of depositing 50% compensation. The petitioner then filed this criminal writ petition before the High Court.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138
  • Code of Criminal Procedure, 1973 (CrPC): 389, 357
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