IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
RITU BAHRI, C.J., RAKESH THAPLIYAL, J.
Smt. Ranjana - Appellant
Versus
Satendra Kumar - Respondent
First Appeal No. 71 of 2023
Decided On : 13-06-2024
Negotiable Instruments - Section 138 - The court discussed the provisions of Section 138 of the Negotiable Instruments Act, emphasizing the discretion of courts in sentencing and the importance of financial transaction integrity.
Fact of the Case:
The revisionist was convicted under Section 138 of the Negotiable Instruments Act for issuing a dishonored cheque after receiving a loan of Rs. 1,20,000. He was sentenced to three months of rigorous imprisonment and fined Rs. 2,05,000.
Finding of the Court:
The court confirmed the conviction but modified the sentence, allowing the revisionist to be released after serving two months, as he had already paid the fine.
Issues: Whether the sentence imposed on the revisionist under Section 138 of the Negotiable Instruments Act should be modified considering the time already served and the fine paid.
Ratio Decidendi: The court held that while the conviction under Section 138 was justified, the sentence could be adjusted based on the time already served and the nature of the offense.
Result: The revision is partly allowed; the sentence is reduced to the time already served.
JUDGMENT :
Ravindra Maithani, J.
The challenge in this revision is made to the following:-
(ii) Judgment and order dated 10.01.2024, passed in Criminal Appeal No. 82 of 2022, Rajesh Gulati Vs. State and another, by the court of 5th Additional Sessions Judge, Haridwar, District Haridwar (“the appeal”). By it, the appeal filed by the revisionist has been dismissed and the order passed in the case has been affirmed.
2. Heard learned counsel for the parties and perused the record.
3. Instant revision has been admitted to the extent of examining the correctness of sentence. Notices were issued on respondent no.2, the complainant, but he is not represented. Service is sufficient on him.
4. The case is based on a complaint filed by the respondent no.2 (the complainant). According to which, the complainant had advanced a loan of Rs.1,20,000/- to the revisionist on 12.04.2023. In return thereof, a cheque was given by the revisionist, but when presented, the cheque was dishonoured. After conducting the trial, by the impugned judgment and order dated 09.05.2022, the revisionist has been convicted under Section 138 of the Act, and sentenced to rigorous imprisonment for a period of three months with a fine of Rs.20,05,000/- with the further stipulation that out of the amount of fine, Rs.2,00,000/- shall be paid to the complainant, as compensation. This judgment and order passed in the case has been confirmed in appeal.
5. Learned counsel for the revisionist would submit that the revisionist has already undergone more than two months’ imprisonment. He has already deposited the fine imposed on him. Therefore, now the sentence may be restricted to the period, which the revisionist has already undergone in the case. Learned counsel for the revisionist would submit that the revisionist is merely Supervisor in a tyre factory and even the payment of fine is much higher on him.
6. Learned State counsel would submit that the revisionist has been in custody in the case for two months.
7. In the offences under the Act, retribution is not the object. The object is to find purity in the financial transactions. The purpose is realisation of money also.
8. In the case of Somnath Sarkar Vs. Utpal Basu Mallick and another, (2013) 16 SCC 465, the Hon’ble Justice T.S. Thakur (as he then was) discussed on the aspect of sentence. In para 15, observed as follows:-
The court affirmed that under Section 138, sentencing discretion allows for adjustments based on the circumstances of the case and the conduct of the accused.
The presumption of liability under Section 139 of the Negotiable Instruments Act is rebuttable, placing the burden on the accused to prove a defense by preponderance of probabilities.
The court has the discretion to alter the sentence under Section 138 of the Negotiable Instrument Act based on the circumstances and payment made by the accused.
A conviction under Section 138 of the N.I. Act can be upheld if supported by sufficient evidence, and sentences can be modified based on the financial circumstances of the accused.
The court holds that modifications to sentences are permissible under the circumstances to ensure justice, particularly regarding compensation for victims.
A conviction under Section 138 of the Negotiable Instruments Act can be upheld if statutory notice requirements are fulfilled, but default imprisonment cannot be imposed for compensation.
The court upheld conviction for cheque dishonor under the Negotiable Instruments Act, allowing time to remit the fine.
The court upheld the conviction under Section 138 of the Negotiable Instruments Act but modified the excessive sentence to time already served, emphasizing limitations on revisional jurisdiction.
The court interpreted that under Section 138, the accused's liability can be satisfied through a fine, and the sentence may be modified while granting time for payment.
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