R. Vijayan – Appellant
Versus
Baby – Respondent
Question 1? Question 2? Question 3?
Key Points: - Compensation under Section 357(3) can be awarded only when the sentence does not include a fine (!) (!) - If the sentence includes a fine, compensation under Section 357(3) cannot be directed; courts may not convert a fine to imprisonment to enable compensation (!) (!) - In cheque dishonour cases under Section 138, the interplay between Section 138, Section 357(1)(b), and Section 143 may affect how fines and compensation are applied; need for uniformity in decisions and potential reforms noted by the Court (!) (!) (!) (!)
JUDGMENT
R.V.Raveendran, J.
Leave granted. Heard.
2. The complainant in a complaint under section 138 of the Negotiable Instruments Act, 1881 (‘Act’ for short) is the appellant in this appeal by special leave. A cheque dated 31.3.1995 for Rs.20,000/- issued by the first respondent drawn in favour of the complainant, towards alleged repayment of a loan was dishonoured when presented for payment. The appellant sent a notice dated 20.4.1995 demanding payment. According to the complainant, the notice was served on the first respondent but the payment was not made. Therefore on 25.5.1995 the appellant lodged a complaint against the first respondent, under section 138 of the Act before the First Class Magistrate -IV, (Mobile), Thiruvananthapuram. After trial, the learned Magistrate by judgment dated 30.11.1996 found the accused guilty under section 138 of the Act and sentenced her to pay a fine of Rs.2000/- and in default to undergo imprisonment for one month. He also directed the accused to pay Rs.20,000/- as compensation to the complainant and in default to undergo simple imprisonment for three months.
3. The first respondent challenged the said judgment and the criminal appeal filed
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