Bom HC | Advisable that Appellate Court imposes condition of depositing compensation amount on appellant when suspending sentence awarded under S. 138 NI Act

Bombay High Court: K.K. Sonawane, J. dismissed a criminal application filed under Section 432 CrPC seeking relief of quashing the order passed by Additional Sessions Judge directing the applicant to deposit Rs 2 lakhs towards part of the compensation awarded by Magistrate (First Class) while convicting him for an offence punishable under Section 138 (dishonour of cheque) of the Negotiable Instruments Act, 1881.

The applicant was convicted for an offence of dishonour of cheque and he was awarded a sentence 1-year simple imprisonment along with deposition of compensation amounting to Rs 6.5 lakhs. The applicant appealed against the order of the trial court. The Additional Sessions Judge, while admitting his appeal, suspended the sentence of imprisonment and directed him to deposit Rs 2 lakhs as part of the compensation before the next date.

Sharikh Mazhar A. Jahagirdar, Advocate for the applicant contended that the Appellate Court had no jurisdiction to impose the condition of part payment of compensation, pending the appeal. Per contra, M.L. Sangeet, Advocate represented the respondent.

The High Court was of the view that the submissions made on behalf of the applicant were not sustainable. The Court relied on the Supreme Court decisions in Hari Singh v. Sukhbir Singh, (1988) 4 SCC 551Dalmiya Cement (Bharat) Ltd. v. Galaxy Traders & Agencies Ltd., (2001) 6 SCC 463; and Stanny Felix Pinto v. Jangid Builders (P) Ltd., (2001) 2 SCC 416. Considering the law laid down in these cases, the High Court observed that: “it is evident that while suspending the sentence for the offence under Section 138 of NI Act, it is advisable that the appellate Court imposes the condition of deposit of compensation, keeping in mind the provisions of Section 138 of NI Act. When the amount of compensation is heavy, the Court can direct the deposit of a reasonable amount. Only in exceptional cases, the Appellate Court can grant interim protection without requiring a deposit of compensation amount.”

In such view of the matter, finding no reason to interfere in the impugned order, the Court dismissed the application. [Rahul Kisan Khande v. Samir Salim Shaikh, 2019 SCC OnLine Bom 834, decided on 02-04-2019]

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