2020 (1) TMI 263 - SC - Indian Laws

Dishonor of Cheque - insufficiency of funds - Appellate Court has suspended the substantive sentence of the appellants subject to deposit 25% of the compensation awarded by the trial court in favour of the complainant - HELD THAT - This Court having already upheld the order of the Appellate Court dated 01.12.2018 suspending the sentence subject to deposit 25% of the amount of compensation any submission questioning the order of the Appellate Court directing the suspension of sentence subject to deposit of 25% of the compensation amount needs no further consideration. By dismissal of the criminal appeals of the appellants on 29.05.2019 by this Court the challenge stands repelled and cannot be allowed to be reopened. The second round of litigation which was initiated by the appellant by filing application under Section 482 Cr.P.C. was against the order dated 20.07.2019 passed by the Additional Sessions Judge, Panchkula by which Additional Sessions Judge held that the appellant having not complied with the direction dated 01.12.2018 to deposit 25% of the amount of compensation, the order of suspension of sentence shall be deemed to have been vacated. The order dated 20.07.2019 was an order passed by the Additional Sessions Judge on account of failure of the appellant to deposit 25% of the amount of compensation. The suspension of sentence on 01.12.2018 was subject to the condition of deposit of 25% of the amount of compensation, when the condition for suspension of sentence was not complied with, learned Additional Sessions Judge was right in taking the view that order of suspension of sentence shall be deemed to have been vacated - Challenge to order dated 20.07.2019 has rightly been repelled by the High Court by its elaborate and well considered judgment. When suspension of sentence by the trial court is granted on a condition, noncompliance of the condition has adverse effect on the continuance of suspension of sentence. The Court which has suspended the sentence on a condition, after noticing non-compliance of the condition can very well hold that the suspension of sentence stands vacated due to non-compliance. The order of the Additional Sessions Judge declaring that due to noncompliance of condition of deposit of 25% of the amount of compensation, suspension of sentence stands vacated is well within the jurisdiction of the Sessions Court and no error has been committed by the Additional Sessions Judge in passing the order dated 20.07.2019. It is for the Appellate Court who has granted suspension of sentence to take call on non-compliance and take appropriate decision. What order is to be passed by the Appellate Court in such circumstances is for the Appellate Court to consider and decide. However, non-compliance of the condition of suspension of sentence is sufficient to declare suspension of sentence as having been vacated. Appeal dismissed.

Summary

Issues Involved:
1. Validity of the suspension of sentence conditioned on the deposit of 25% of the compensation amount.
2. Retrospective application of Section 148 of the Negotiable Instruments Act, 1881.
3. Consequences of non-compliance with the condition of suspension of sentence.

Detailed Analysis:

1. Validity of the Suspension of Sentence Conditioned on the Deposit of 25% of the Compensation Amount:
The appellants challenged the order dated 01.12.2018 by the Additional Sessions Judge, Panchkula, which suspended their sentence subject to the deposit of 25% of the compensation awarded by the trial court. The High Court dismissed their petitions under Section 482 Cr.P.C., and this dismissal was upheld by the Supreme Court. The Supreme Court noted that the appellants' arguments against the order had already been considered and rejected in a previous judgment. The Court reiterated that the condition to deposit 25% of the compensation was in line with the amended Section 148 of the NI Act, which aims to prevent delay tactics by unscrupulous drawers of dishonoured cheques.

2. Retrospective Application of Section 148 of the Negotiable Instruments Act, 1881:
The appellants contended that Section 148 of the NI Act, which came into force on 01.09.2018, should not apply to their case as the complaints were filed before this date. However, the Supreme Court held that the amended Section 148 applies to appeals against convictions under Section 138 of the NI Act, even if the complaints were filed before the amendment. The Court emphasized that the amendment's purpose is to ensure speedy disposal of cases and prevent misuse of the appeal process by convicted individuals. The Court dismissed the appellants' reliance on the judgment in G.J. Raja vs. Tejraj Surana, noting that the latter dealt with Section 143A of the NI Act, which applies at the trial stage, unlike Section 148, which applies at the appellate stage.

3. Consequences of Non-Compliance with the Condition of Suspension of Sentence:
The appellants failed to comply with the condition to deposit 25% of the compensation amount, leading the Additional Sessions Judge to vacate the suspension of their sentence. The Supreme Court upheld this decision, stating that non-compliance with the condition of suspension justifies vacating the suspension. The Court noted that the appellate court has the authority to impose such conditions and to take appropriate actions in case of non-compliance. The Court also distinguished the case from the judgment in Vivek Sahni and another vs. Kotak Mahindra Bank Ltd., noting that the latter did not correctly address the issue of non-compliance with suspension conditions.

Conclusion:
The Supreme Court dismissed the appeals, affirming the validity of the suspension of sentence conditioned on the deposit of 25% of the compensation amount, the retrospective application of Section 148 of the NI Act, and the consequences of non-compliance with the suspension conditions. The Court emphasized the legislative intent behind the amendments to the NI Act, aimed at ensuring the swift resolution of cheque dishonour cases and preventing misuse of the legal process by convicted individuals.