Bombay High Court Partly Allows Revision in Negotiable Instruments Act Case — Modifies Condition for Suspension of Sentence. Appellate Court's Direction to Deposit Compensation Upheld but Reduced to 50% Considering Financial Hardship.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The applicant, T. Veeruswami, was convicted under Section 138 of the Negotiable Instruments Act, 1881, by the trial court in Criminal Case No.16057 of 2009 and sentenced to one month simple imprisonment and directed to pay Rs.15,00,000/- as compensation to the complainant, M/s. Ramsons Casting Pvt. Ltd. The applicant appealed against the conviction. The appellate court (Additional Sessions Judge-7, Nagpur) admitted the appeal and suspended the sentence but imposed a condition that the applicant deposit Rs.5,00,000/- in the appellate court. Aggrieved by this condition, the applicant filed a criminal revision application before the Bombay High Court. The applicant argued that under Section 357(2) CrPC, compensation awarded under Section 357(3) cannot be paid to the victim until the appeal period is over or the appeal is decided, and therefore the appellate court could not direct deposit of compensation as a condition for suspension of sentence. The High Court examined the distinction between fine and compensation. It noted that compensation under Section 357(3) is not a fine and is not subject to the bar under Section 357(2) which applies only to fines. The court held that the appellate court has the power under Section 389 CrPC to impose conditions while suspending sentence, including a direction to deposit part of the compensation amount. However, considering the applicant's financial condition, the High Court modified the condition, reducing the deposit amount from Rs.5,00,000/- to Rs.2,50,000/-. The revision application was partly allowed.

Headnote

A) Criminal Procedure Code - Suspension of Sentence - Condition of Deposit - Section 389 read with Section 357 CrPC - The appellate court while suspending sentence can impose condition of depositing part of compensation amount awarded under Section 357(3) CrPC - The distinction between fine and compensation is that compensation is not a fine and can be paid to the victim even during pendency of appeal if so directed - Held that the appellate court's direction to deposit Rs.5,00,000/- was not illegal but modified to Rs.2,50,000/- considering the applicant's financial condition (Paras 3-7).

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Issue of Consideration

Whether the appellate court can direct deposit of compensation amount as a condition for suspending sentence under Section 389 CrPC, and whether such direction is barred by Section 357(2) CrPC

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Final Decision

The revision application is partly allowed. The condition imposed by the appellate court directing deposit of Rs.5,00,000/- is modified to Rs.2,50,000/-. The applicant shall deposit Rs.2,50,000/- within four weeks from the date of the order.

Law Points

  • Compensation under Section 357(3) CrPC is distinct from fine
  • appellate court can impose condition of deposit of part of compensation while suspending sentence under Section 389 CrPC
  • Section 357(2) CrPC does not bar payment of compensation during pendency of appeal if ordered by appellate court
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Case Details

2014 LawText (BOM) (02) 181

Criminal Revision Application No.217 of 2013

2014-02-24

M. L. Tahaliyani

Mr. R.P. Ghanwat for applicant, Mr. S.S. Joshi for respondent

T. Veeruswami

M/s. Ramsons Casting Pvt. Ltd.

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Nature of Litigation

Criminal revision against order of appellate court imposing condition of deposit of compensation amount while suspending sentence in a cheque dishonour case

Remedy Sought

Applicant sought modification of condition requiring deposit of Rs.5,00,000/- as a condition for suspension of sentence

Filing Reason

Applicant was convicted under Section 138 of Negotiable Instruments Act and sentenced to imprisonment and compensation; appellate court suspended sentence but directed deposit of Rs.5,00,000/-

Previous Decisions

Trial court convicted applicant and sentenced him to one month simple imprisonment and Rs.15,00,000/- compensation; appellate court admitted appeal and suspended sentence subject to deposit of Rs.5,00,000/-

Issues

Whether the appellate court can direct deposit of compensation amount as a condition for suspending sentence under Section 389 CrPC? Whether such direction is barred by Section 357(2) CrPC?

Submissions/Arguments

Applicant argued that under Section 357(2) CrPC, compensation cannot be paid to the victim until appeal is decided, so condition of deposit is illegal. Respondent supported the appellate court's order.

Ratio Decidendi

Compensation under Section 357(3) CrPC is distinct from fine and is not subject to the bar under Section 357(2) CrPC. The appellate court has power under Section 389 CrPC to impose conditions while suspending sentence, including a direction to deposit part of the compensation amount. However, the amount must be reasonable considering the financial condition of the accused.

Judgment Excerpts

The applicant is aggrieved by the order passed by the learned Additional Sessions Judge–7, Nagpur. The applicant was accused in Criminal Case No.16057 of 2009 for the offence punishable under Section 138 of Negotiable Instruments Act. The appellate Court directed that the applicant should deposit Rs.5,00,000/ in the appellate Court. The learned counsel for the applicant has submitted that provisions of Section 357 (3) are related by provisions of subsection (2) of Section 357 of Criminal Procedure Code. In this regard distinction in the fine amount and compensation amount may be made...

Procedural History

Trial court convicted applicant under Section 138 NI Act and sentenced to one month imprisonment and Rs.15,00,000/- compensation. Applicant appealed. Appellate court admitted appeal and suspended sentence subject to deposit of Rs.5,00,000/-. Applicant filed criminal revision before High Court challenging the condition.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138
  • Code of Criminal Procedure, 1973 (CrPC): 357, 389
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High Court Bombay High Court Partly Allows Revision in Negotiable Instruments Act Case — Modifies Condition for Suspension of Sentence. Appellate Court's Direction to Deposit Compensation Upheld but Reduced to 50% Considering Financial Hardship.
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