Bombay High Court Dismisses Petition by Legal Heir Challenging Recovery of Fine and Compensation Imposed on Deceased Accused in Cheque Dishonour Case. Liability to Pay Fine and Compensation Survives Death of Offender Under Section 70 IPC and Can Be Recovered from Inherited Property.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioner, Smt. Shamim Saifuddin Sarkhot, challenged an order dated 19.12.2015 passed by the Judicial Magistrate First Class, Shrivardhan, directing her to pay a fine of Rs.25,000/- to the State and compensation of Rs.2,82,500/- to respondent No.1 (original complainant) within 30 days, failing which a warrant would be issued to the Collector for recovery. The petitioner was the wife and legal heir of Saifuddin Sarkhot, who was convicted in S.C.C. No. 173 of 2008 for an offence under Section 138 of the Negotiable Instruments Act, 1881. The trial Court had originally directed Saifuddin to pay a fine of Rs.4,10,000/- with a default sentence of six months, out of which Rs.3,85,000/- was to be paid as compensation to the complainant. Saifuddin appealed, but during the pendency of the appeal, he died, and the petitioner did not apply to be brought on record, resulting in the abatement of the appeal. The respondent then filed a complaint for recovery of the fine and compensation, leading to the impugned order. The petitioner argued that she was only a legal heir and had received property under a will, which was her self-acquired property, and thus she was not liable. The Court rejected this contention, relying on Section 70 of the Indian Penal Code, which provides that the death of the offender does not extinguish the liability to pay the fine, and the same can be recovered from the legal heir. The Court also referred to Sections 421 and 431 of the Code of Criminal Procedure, 1973, which allow recovery of fine and compensation by sale and auction of the property of the accused. The Court held that the property inherited by the petitioner, even under a will, is liable to be attached and sold for recovery of the amounts. The petition was dismissed, and the impugned order was upheld.

Headnote

A) Criminal Procedure - Recovery of Fine and Compensation - Sections 421, 431 CrPC - The Court held that the fine and compensation imposed on the deceased accused can be recovered by sale and auction of his property, and the legal heir inheriting such property is liable to satisfy the dues. The trial Court's order directing recovery from the petitioner was upheld. (Paras 6-7)

B) Indian Penal Code - Death of Offender - Section 70 IPC - The Court held that Section 70 IPC provides that the death of the offender does not extinguish the liability to pay the fine, and the same can be recovered from the legal heir. The petitioner's contention that she was not liable was rejected. (Para 7)

C) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - The original accused was convicted under Section 138 of the Negotiable Instruments Act, 1881, and ordered to pay fine and compensation. The Court upheld the recovery of these amounts from the legal heir of the deceased accused. (Paras 5-6)

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Issue of Consideration

Whether the petitioner, as legal heir of the deceased accused, is liable to pay the fine and compensation imposed on the accused under Section 138 of the Negotiable Instruments Act, 1881, and whether the property inherited by her under a will can be attached and sold for recovery of such amounts.

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Final Decision

The petition was dismissed. The impugned order of the Judicial Magistrate First Class, Shrivardhan, dated 19.12.2015, directing the petitioner to pay fine of Rs.25,000/- to the State and compensation of Rs.2,82,500/- to respondent No.1, was upheld.

Law Points

  • Liability of legal heir to pay fine and compensation imposed on deceased accused
  • Recovery of fine and compensation under Section 421 and 431 CrPC
  • Effect of Section 70 IPC on death of offender
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Case Details

2016 LawText (BOM) (02) 82

Criminal Writ Petition No.555 of 2016

2016-02-17

Dr. Shalini Phansalkar-Joshi, J.

Mr. Anwar F. Shaikh (for petitioner), Mr. A.S. Shitole, APP (for respondent State)

Smt. Shamim Saifuddin Sarkhot

Shri. Jugraj Miyachand Jain, The State of Maharashtra

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Nature of Litigation

Criminal writ petition challenging the order of Judicial Magistrate First Class directing recovery of fine and compensation from the petitioner as legal heir of deceased accused.

Remedy Sought

The petitioner sought to quash the order dated 19.12.2015 passed by the Judicial Magistrate First Class, Shrivardhan, directing her to pay fine and compensation.

Filing Reason

The petitioner contended that she was only a legal heir and the property inherited by her under a will was self-acquired, and she was not liable to pay the fine and compensation imposed on the deceased accused.

Previous Decisions

The original accused Saifuddin was convicted in S.C.C. No.173 of 2008 under Section 138 of the Negotiable Instruments Act and ordered to pay fine and compensation. His appeal abated upon his death. The trial Court then passed the impugned order for recovery from the petitioner.

Issues

Whether the legal heir of a deceased accused is liable to pay the fine and compensation imposed on the accused under Section 138 of the Negotiable Instruments Act. Whether property inherited by the legal heir under a will can be attached and sold for recovery of such amounts.

Submissions/Arguments

Petitioner argued that she is only a legal heir and the property received under a will is her self-acquired property, hence she is not liable to pay the fine or compensation. Respondent contended that under Section 70 IPC, the death of the offender does not extinguish the liability to pay the fine, and under Sections 421 and 431 CrPC, the amount can be recovered from the property of the accused, which now vests in the legal heir.

Ratio Decidendi

Under Section 70 of the Indian Penal Code, the death of the offender does not extinguish the liability to pay the fine, and the same can be recovered from the legal heir. Sections 421 and 431 of the Code of Criminal Procedure provide for recovery of fine and compensation by sale and auction of the property of the accused, which includes property inherited by the legal heir.

Judgment Excerpts

As per Section 421 of the Code of Criminal Procedure, fine amount as imposed by the Court is to be recovered by sale and auction of the property of accused; whereas as per section 431 even amount of compensation can be recovered as if it was a fine. According to section 70 of IPC, death of offender does not extinguish the liability to pay the fine.

Procedural History

The original accused Saifuddin was convicted in S.C.C. No.173 of 2008 under Section 138 of the Negotiable Instruments Act and ordered to pay fine and compensation. He appealed, but during the pendency of the appeal, he died. The petitioner did not apply to be brought on record, and the appeal abated. The respondent then filed a complaint for recovery, leading to the impugned order dated 19.12.2015 by the Judicial Magistrate First Class, Shrivardhan. The petitioner challenged this order by filing Criminal Writ Petition No.555 of 2016 before the Bombay High Court.

Acts & Sections

  • Code of Criminal Procedure, 1973: 421, 431
  • Indian Penal Code, 1860: 70
  • Negotiable Instruments Act, 1881: 138
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