SUPREME COURT OF INDIA
Ranjana Prakash Desai, N.V. Ramana, JJ.
H. Pukhraj – Appellant
Versus
D. Parasmal – Respondent
Criminal Appeal No. 1789 of 2014, Special Leave Petition (Crl.) No. 6483 of 2013
Decided On : 06-08-2014
Negotiable Instruments Act - Section 138 – imprisonment – Claim of compensation – Acquitted - From foregoing discussions and perusing judgment of both courts this Court is of view that quantum of punishment is on the lower side since cheque amount a sum involved and dishonour of case had been proved below courts therefore this Court is inclined to modify the adequate punishment is such this Court impose a sentence on accused that he has to undergo two months simple imprisonment to pay compensation – Held, Baby and Another Recent Apex Judgments this Court considered the same question. This Court also examined the need to award compensation to the complainant. This Court was of opinion that the traditional view that the criminal proceedings are for imposing punishment on the accused, either punishment or fine or both and there is no need to compensate the complainant, particularly if the complainant is not a victim in the real sense but is a well-to-do financier or financing institution, gives rise to difficulties and complications - This Court further observed that in those cases where the discretion to direct payment of compensation is not exercised it causes considerable difficulty to the complainant as invariably by the time the criminal case is decided limitation for filing civil cases would have expired - This Court further observed that as the provisions of Chapter NI Act strongly lean towards grant of reimbursement of the loss by way of compensation courts should unless there are special circumstances in all cases of conviction uniformly exercise the power to levy fine twice cheque amount keeping in view the cheque amount and the simple interest thereon at nine per cent per annum as the reasonable quantum of loss and direct payment of such amount as compensation - Court further observed that the direction to pay compensation by way of restitution in regard to the loss on account of dishonour of cheque should be practical and realistic which would mean not only payment of cheque amount but interest thereon at a reasonable rate - Appeal disposed
ORDER :
1. Leave granted. The Appellant is the complainant. The Respondent is the accused. For the disposal of this case, it is not necessary to give details of the facts of the case. Suffice it to say that a cheque in the sum of Rs. 6,19,488/- (Rupees six lakh nineteen thousand four hundred and eighty eight only) was issued by the Respondent to the Appellant. The cheque is dated 11.04.2003. When it was presented for encashment on the same day, it bounced. The Appellant filed complaint on 27.05.2003. The trial was conducted by the Judicial Magistrate No. V, Coimbatore. Learned Magistrate by order dated 05.09.2005 convicted the Respondent under Section 138 of the Negotiable Instruments Act ("the NI Act") and sentenced him to undergo six months imprisonment and also to pay fine of Rs. 4,000/- in default, to undergo three months further imprisonment. Being aggrieved by this judgment, the Respondent preferred an appeal in the Court of Additional District Judge, Fast Track Court No. 1, Coimbatore. The learned Additional District Judge confirmed the conviction. However, the Additional District Judge modified the order of sentence. He reduced the sentence to three weeks. Being aggrieved by that, the Appellant approached the High Court making grievance about the inadequacy of the sentence. The High Court, by the impugned order confirmed the conviction. It, however, modified the order of sentence. The High Court directed the Respondent either to pay compensation of Rs. 2,00,000/- (Rupees two lakh only) to the Appellant or to undergo imprisonment for two months. The operative part of the order could be quoted:
"5. From the foregoing discussions and perusing the judgment of both courts, this Court is of the view that the quantum of punishment is on the lower side, since the cheque amount a sum of Rs. 6,19,488/- is involved and the dishonour of the case had been proved below the courts, therefore, this Court is inclined to modify the adequate punishment is such this Court impose a sentence on the accused that he has to undergo two months simple imprisonment to pay compensation a sum of Rs. 2,00,000/-. The accused either has to pay the compensation amount or to undergo two months simple imprisonment as it is found to be appropriate in the instant case. This court directs the learned judicial Magistrate No. V, Coimbatore, to issue bailable warrant and secure him forthwith in order to undergo two months simple imprisonment. If the accused deposits the said compensation amount a sum of Rs. 2,00,000/- into the credit of C.C. No. 461 of 2003, on the file of Judicial Magistrate No. V, Coimbatore, before being remanded into the Judicial Custody then the accused will be set at liberty and the sentence by two months simple imprisonment would not be operated against the accused. If the accused remits the said compensation and it is open to the complainant to withdraw the said amount from the Trial Court along with a copy of this order. If the accused pays the said compensation amount, the fine amount shall be returned to him."
2. We have heard learned Counsel for the Appellant at some length. Though notice is served on the Respondent, he is not appearing either in person or through a lawyer. This Court, therefore, appointed Mrs. Nanita Sharma as amicus curiae. We have heard learned amicus curiae also.
3. Learned counsel for the Appellant severally assailed the impugned judgment. He submitted that the impugned order may be set aside and the Appellant may be adequately punished and substantial compensation amount may be directed to be paid to the Appellant. Learned counsel for the Appellant urged that this Court should ask the Respondent to pay double the cheque amount to the Appellant. Learned amicus curiae, on the other hand, submitted that no interference is necessary with the impugned order.
4. In Suganthi Suresh Kumar v. Jagdeeshan, 2002 (1) RCR (Criminal) 502 : (2002) 2 SCC 420, this Court was considering the propriety of inadequate sentence imposed
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