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2025 Supreme(AP) 590

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
B.V.L.N. CHAKRAVARTHI, J.
Gollavilli Borraiah S/O Late Sri Appanna, Hindu – Appellant 
Versus 
The State Of A.P. rep by its Public Prosecutor, High Court at Amaravathi, through its S.I of Police, Duvvada P.S., Visakhapatnam
CRIMINAL PETITION No.3786 OF 2024
Decided On : 26-10-2024
Advocate Appeared : 
For the Appellant : N. SIVA REDDY
For the Respondent : PUBLIC PROSECUTOR (AP)

Court emphasizes that compensation must utilize Section 357(1) of Cr.P.C. when fine forms part of the sentence, rejecting reliance on Section 357(3).

Headnote:(A) Indian Penal Code, 1860 - Sections 427 and 447 - Criminal Procedure Code, 1973 - Section 357 - Conviction for trespassing and mischief leading to imprisonment and fines along with compensation directed - The trial court's imposition of compensation is examined concerning application of relevant CPC provisions - Distinction between sections concerning fines and compensation clarified - The appellate court's directive for partial compensation payment mimicking convictions under the Negotiable Instruments Act found unsustainable. (Paras 2, 6, 14 and 16)

(B) Criminal Procedure - Compensation - The Court held that to apply fine for compensation, Cr.P.C. Section 357(1) must be invoked, not Section 357(3) as was done by the Sessions Judge - The directive for separate payment under Section 357(3) contradicts principles when fine forms part of the sentence. (Paras 12, 15)

Facts of the case:
The petitioners were found guilty under Sections 447 and 427 IPC, sentenced to simple imprisonment and fined, with further compensation directed to site owners. The petitioners challenged the suspension and payment obligations from their conviction.

Findings of Court:
Orders from the Sessions Judge regarding compensation and partial payment found inconsistent with the law; the matter was remitted for re-evaluation.

Issues: Whether the compensation imposed was correctly applied under the Cr.P.C. provisions and the appropriateness of directives given by the learned Sessions Judge.

Ratio Decidendi: Compensation must derive from the fine under Section 357(1), not from Section 357(3) when the fine is part of the sentence.

Result: The order of the learned Sessions Judge set aside; the matter remitted for reconsideration.

Table of Content
1. overview of charges and sentencing (Para 1 , 2)
2. discussion on legal application of sections 357(1) and 357(3) cr.p.c. (Para 12 , 13)
3. clarification of legal distinction in compensation applications (Para 15 , 16)
4. final order and directions for reconsideration (Para 17 , 18)

ORDER:

Heard Sri N.Siva Reddy, learned counsel for the petitioners/A-1 to A-4. Learned Assistant Public Prosecutor takes notice for the State.

2. Sri N.Siva Reddy, learned counsel for the petitioners would submit that the petitioners/A-1 to A-4 were found guilty for the offence U/s.447 r/w.34 IPC and sentenced to undergo simple imprisonment for a period of three months each, and to pay a fine of Rs.5,000/- (Rupees Five Thousand only) each, in default, to suffer simple imprisonment for one month each. Further, the petitioners/A-1 to A-4 found guilty for the offence U/s.427 r/w.34 IPC and sentenced to undergo simple imprisonment for a period of two (02) years each, and to pay a fine of Rs.10,000/- (Rupees Ten Thousand only) each, in default, to suffer simple imprisonment for two months each. Further, A-1 to A-4 are directed to pay compensation of Rs.1,00,000/- (Rupees one Lakh only) each to P.W-1, P.W-2 and P.W-5 owners of the site, within two months from the date of judgment, in default, to suffer simple imprisonment for a period of four months each.

03. He would further submit that the petitioners/A-1 to A-4 filed Crl.A.No.98/2024 on the file of IV Addl.Metropolitan Sessions Judge, Visakhapatnam, at Gajuwaka, challenging the judgment of the learned Magistrate. The petitioners/A-1 to A-4 filed Crl.M.P.No.326/2024 U/s.389(1) Cr.P.C. to suspend the sentence passed by the learned Magistrate.

04. The learned IV Addl.Metropolitan Sessions Judge, Visakhapatnam at Gajuwaka, vide order dated 08.04.2024, which is now under challenge, allowed the petition, suspending the sentence of imprisonment, on the same terms and conditions imposed by the trial Court, but subject to payment of 20% of the compensation amount awarded by the Magistrate, as per the judgment of the Hon’ble Apex Court in the case of Jamboo Bhandari Vs. M.P.State Industrial Development Corporation Limited and Others , 2023 LiveLaw (SC) 776.

05. Learned counsel for petitioners would further submit that the judgment of the Hon’ble Apex Court in the case of Surinder Singh Deswal @ Colonel S.S.Deswal and others , [2019 (11) SCC 341] relied on by the learned Sessions Judge, relates to offence U/s.138 of Negotiable Instruments Act, wherein, the Hon’ble Apex Court laid down certain principles relating to deposit of compensation amount with reference to section 148 of N.I.Act i.e., Power of Appellate Court to order payment against conviction U/s.138 of N.I.Act. Hence, application of the said judgment to the present petitioners is not correct, since the petitioners were convicted for the offence U/secs.447 and 427 IPC. Therefore, the order of the learned Sessions Judge is not sustainable in law.

06. Perusal of the record would show that the petitioners/A1 to A-4 were convicted for the offence U/secs.447 and 427 IPC. They were sentenced to undergo simple imprisonment for a period of three months each and to pay a fine of Rs.5,000/- (Rupees Five Thousand only) each, in default, to suffer simple imprisonment for one month each. Further, the petitioners/A-1 to A-4 found guilty for the offence U/s.427 r/w.34 IPC and sentenced to undergo simple imprisonment for a period of two (02) years each and to pay a fine of Rs.10,000/- (Rupees Ten Thousand only) each, in default, to suffer simple imprisonment for two months each. Further, A-1 to A-4 are directed to pay compensation of Rs.1,00,000/- (Rupees one Lakh only) each to P.W-1, P.W-2 and P.W-5 owners of the site, within two months from the date of judgment, in default, to suffer simple imprisonment for a period of four months each.

07. Admittedly, the petitioners/A1 to A-4 filed Crl.A.98/2024, challenging the judgment of the learned Magistrate. They also

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