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2020 Supreme(SC) 14

ASHOK BHUSHAN, M.R.SHAH
Surinder Singh Deswal@ Col. S. S. Deswal – Appellant
Versus
Virender Gandhi – Respondent


Advocates Appeared:
For the Appellant(s) :Ajay Marwah, Ayush Gupta, Advocate
For the Respondent(s):Alok Sangwan, Sunny Kadiyan, Advocates

Judgement Key Points

Based on the provided legal document, the key points are as follows:

  1. The order of conditional suspension of sentence is contingent upon the non-compliance of the specified condition. Failure to fulfill the condition, such as not depositing the required amount, has a direct adverse effect on the continuance of the suspension, which can lead to its vacation (!) (!) (!) .

  2. The applicability of the amended section related to deposit conditions (Section 148 of the Negotiable Instruments Act) is considered to be prospective, even in cases where the complaint was filed prior to the amendment. The amendment aims to prevent delays caused by appeals and stays, thereby facilitating quicker enforcement of compensation orders (!) .

  3. When a suspension of sentence is granted on a condition, non-compliance with that condition provides sufficient grounds for the court to declare the suspension as vacated. This principle applies regardless of whether the order was passed by the trial court or the appellate court, and it is within the jurisdiction of the appellate court to decide on such non-compliance (!) (!) (!) .

  4. The courts have consistently held that non-deposit of the specified percentage of the compensation or fine, as directed, results in the automatic vacating of the suspension of sentence. The failure to comply with such conditions is viewed as a serious breach that justifies the vacation of the suspension (!) (!) (!) .

  5. The legal provisions and amendments aim to ensure speedy disposal of cases under the Negotiable Instruments Act, and the courts have emphasized that the discretion to impose deposit conditions is generally mandatory when such conditions are prescribed, especially to prevent delays and uphold the integrity of cheque transactions (!) (!) .

  6. The courts have dismissed challenges to the conditions imposed for suspension, affirming that the non-compliance with deposit conditions warrants the vacation of the suspension and subsequent surrender or enforcement actions (!) (!) .

  7. The judgment clarifies that the non-compliance with suspension conditions, such as failure to deposit the mandated amount within the specified period, is sufficient to vacate the suspension, and the courts are justified in taking such actions to uphold procedural integrity (!) (!) .

  8. Overall, the legal stance is that failure to adhere to the conditions for suspension, particularly regarding deposit of the specified amount, results in the automatic vacating of the suspension order, and courts are within their rights to enforce this principle to ensure compliance and justice (!) (!) (!) (!) .

These points collectively emphasize the importance of strict compliance with conditions attached to suspension orders, especially deposit requirements, and affirm that non-compliance leads to the automatic vacation of the suspension of sentence.


JUDGMENT :

ASHOK BHUSHAN, J.

These appeals have been filed against a common judgment of the Punjab and Haryana High Court dated 10.09.2019 dismissing 28 petitions filed by the appellants under Section 482 of Cr.P.C.

2. Brief facts of the case giving rise to these appeals are:

Appellant Nos. 1 and 2 are partners of appellant No.3, M/s. Bhoomi Infrastructure Co., now known as GLM Infratech Private Limited. Respondent No.1, Virender Gandhi, who was also a partner of the Firm retired with respect of which Memorandum of Understanding dated 30.11.2013 was entered into. A cheque No.665643 dated 31.03.2014 drawn on Canara Bank amounting to Rs.45,84,915/-was issued by the appellant to respondent No.1 against the part payment of the retirement dues. Similarly, 63 other cheques were issued by the appellants in favour of respondent arising out of the same transaction. On 06.04.2015, respondent No.1 deposited cheque No.665643 in his Bank that is Karnataka Bank Ltd., Sector-11, Panchkula. The cheque was dishonoured and returned vide memo dated 07.04.2015 with the remarks “funds insufficient”. Other 63 cheques were also dishonoured.

3. Respondent No.1 sent the statutory demand notice under Section 138

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