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2023 Supreme(Del) 1527

IN THE HIGH COURT OF DELHI AT NEW DELHI
Swarana Kanta Sharma, J.
Gulshan Arora & Anr. – Appellants
Versus
State of NCT of Delhi & Anr. – Respondents
Cr.M.C. 172 of 2023 & Cr.M.A. 723 of 2023 & Cr.M.A. 724 of 2023
Decided On : 01-05-2023

Advocates appeared:
Mr. Prem Kandpal, Mr. Nakul Singal, Ms. Yogita Bansal and Mr. Himanshu, Advocates, for the Petitioner.
Mr. Satish Kumar, APP, for State.
Mr. Kunal Anand, Mr. Sandesh Kumar, Mr. Jai Batra and Mr. Amresh Bind, Advocates, for Complainant.

The aim of Section 148 NI Act is to provide relief to the complainant by empowering the Appellate Court to direct payment of a portion of the fine/compensation during the pendency of appeal. The vacation of the suspension of sentence due to non-compliance with the condition is within the powers of the Appellate Court.

Headnote:

NI Act - Appeal against Conviction - Section 138 NI Act, 1881 - 138 - 143A - 148 - 389 Cr.P.C. - 148 NI Act

Fact of the Case:

The petitioners sought quashing of orders convicting them under Section 138 of NI Act. The Trial Court convicted them and imposed a fine of Rs.27,20,000. The Appellate Court suspended their sentence but directed them to deposit 20% of the fine. Upon non-payment, the suspension was vacated, and the petitioners were directed to surrender.

Finding of the Court:

The Court held that the petitioners failed to establish special reasons to exempt them from depositing 20% of the fine amount as per Section 148 NI Act. The vacation of the suspension of sentence due to non-compliance with the condition was held to be in line with the powers of the Appellate Court.

Issues: Waiver of payment of 20% of the fine amount and setting aside the order vacating the suspension of sentence due to non-payment.

Ratio Decidendi: The Court found no special circumstances to exempt the petitioners from depositing 20% of the fine amount as per Section 148 NI Act. The vacation of the suspension of sentence due to non-compliance with the condition was held to be in line with the powers of the Appellate Court.

Final Decision: The petitioners were directed to deposit 20% of the amount of fine imposed by the Trial Court within 10 days, failing which they were to surrender before the Trial Court concerned within one week of non-payment.

JUDGMENT

Swarana Kanta Sharma, J.

1. By way of present petition filed under Section 482 of the Code of Criminal Procedure, 1973 (hereinafter 'Cr.P.C.'), the petitioners seek quashing/setting aside of the order dated 01.10.2022 passed by learned Special Judge-NDPS/ASJ, South, Saket Courts, and order dated 06.01.2023 passed by learned ASJ-07, South, Saket Courts, (hereinafter 'Appellate Court') in CA No. 134/2021 titled as "Gulshan Arora & Anr. vs. State (GNCT of Delhi) & Anr."

2. The aforesaid impugned orders of the learned Appellate Court emanate from the Appeal filed by the petitioners herein against their conviction under Section 138 of Negotiable Instruments Act, 1881 (hereinafter 'NI Act') in CT Case No.11160/2017 titled as "Arun Malhotra v. Gulshan Arora & Anr."

2.1. The petitioners, vide judgment dated 22.10.2021, were held guilty under Section 138 of NI Act by the Court of learned MM (NI Act-03)/South, Saket Courts, New Delhi (hereinafter 'Trial Court') and the concluding portion of said judgment reads as under:

    "...Conclusion:

    25. In view of the foregoing discussion, this court holds that complainant has established his case beyond reasonable doubt by proving all the ingredients under Section 138 NI Act and the accused persons have failed to raise a probable defence.

    26. Accused Gulshan Arora and Gaurav Arora are hereby convicted for offence punishable under Section 138 NI Act qua the cheque in question in the present case..."

2.2. The learned Trial Court vide order dated 18.11.2021, sentenced the petitioners to payment of fine of Rs.27,20,000/-, to be paid within 45 days to the complainant, and in default of such payment of fine, to undergo a simple imprisonment for a period of six months. The relevant portion of this order reads as under:

    "8. In the totality of the aforesaid facts and circumstances, the amount involved in the cheque in question, and keeping in view that the complainant has been running from pillar to post to recover the amount due to her on the one hand and the circumstances of the accused on the other hand, this court is of the opinion that the scales of justice would be balanced if the convicts are sentenced to pay fine of Rs.27,20,000/- (Rupees twenty-seven lakhs and twenty thousand only), the whole of which is to be paid to the complainant as compensation jointly and severally within 45 days. In default of payment of said fine, convicts shall undergo simple imprisonment for a period of six months..."

3. Upon an appeal being filed by the petitioners against aforesaid orders, their sentence was suspended by the learned Appellate Court vide order dated 17.12.2021.

4. Thereafter, while deciding an application filed by original complainant/respondent no. 2 under Section 148 of NI Act, petitioners were directed by learned Appellate Court to deposit 20% of the amount of fine imposed upon them by the learned Trial Court. The relevant extracts of this order dated 01.10.2022 are as under:

    "...The impugned judgment reveals that during trial, the issuance of the cheque in dispute, the signatures of the appellants on the cheque, the dishonour of the cheque were all admitted. These facts make it a good case for granting relief u/s 148 NI Act. It is clarified that these observations shall have no bearing on the disposal on the appeal on its merits.

    Accordingly, the application u/s 148 NI Act is allowed. The appellant is directed to deposit 20% of the fine amount as awarded by the Ld. Trial Court. The amount be deposited within 60 days from today in the form of an FDR. The said FDR should be in the name of the respondent and shall be released to the respondent as and when requested. The respondent undertakes to repay this amount/FDR so received by him, subject to the disposal of this appeal. To come up for arguments on this appeal on 06.01.2023..."

5. Thereafter, on 06.01.2023, learned Appellate Court vacated the order of suspension of sentence dated 17.12.2021 due to non-payment of 20% of the amount of fine with

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