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[Cites 28, Cited by 37]

Supreme Court of India

Satyendra Kumar Mehra @ Satendera Kumar ... vs The State Of Jharkhand on 23 March, 2018

Equivalent citations: AIR 2018 SUPREME COURT 1587, 2018 (15) SCC 139, AIR 2018 SC (CRIMINAL) 577, 2018 (2) AJR 839, (2018) 2 CRILR(RAJ) 356, (2018) 2 RECCRIR 530, (2018) 3 MAD LJ(CRI) 18, (2018) 1 NIJ 448, (2018) 70 OCR 818, (2018) 2 BOMCR(CRI) 557, (2018) 5 SCALE 109, (2018) 1 UC 551, 2019 (1) SCC (CRI) 831, (2018) 2 PAT LJR 260, 2018 CRILR(SC MAH GUJ) 356, (2018) 2 CURCRIR 96, (2018) 104 ALLCRIC 322, (2018) 2 ALLCRIR 1732, (2018) 2 CRIMES 302, (2018) 4 ALLCRILR 594, (2018) 187 ALLINDCAS 179 (SC), 2018 CRILR(SC&MP) 356, (2018) 2 JLJR 241, 2018 (2) KLT SN 43 (SC)

Author: Ashok Bhushan

Bench: Ashok Bhushan, A.K. Sikri

                                                         1

                                                                                   REPORTABLE
                                       IN THE SUPREME COURT OF INDIA
                                      CRIMINAL APPELLATE JURISDICTION

                                      CRIMINAL APPEAL NO.406 OF 2018
                                (ARISING OUT OF SLP(CRL.)NO.1994 OF 2018)


     SATYENDRA KUMAR MEHRA
     @ SATENDERA KUMAR MEHRA                      … PETITIONER 

                                                      VERSUS

     THE STATE OF JHARKHAND                                             … RESPONDENT



                                                J U D G M E N T

     ASHOK BHUSHAN, J.

This appeal has been filed against an order of the High Court of Jharkhand at Ranchi in Criminal Appeal NO.176 of 2018 by which High Court by allowing I.A.No. 892 of 2018 filed by the appellant, has   directed to grant suspension of sentence of   the   appellant.   The   High   Court   further   directed   that   the appellant should also deposit the fine amount awarded before the court below. The appellant is aggrieved only against that part of the order by which the High Court directed the deposit of fine amount. 

2. The   appellant   was   an   accused   in   R.C.   Case   No.68(A)   of Signature Not Verified 1996­State (through CBI) vs. Lalu Prasad @ Lalu Prasad Yadav Digitally signed by ASHWANI KUMAR Date: 2018.03.24 12:51:53 IST Reason: and   others.   Accused   were   tried   for   the   offence   punishable under Sections 120­B/ read with 409, 420, 467, 468, 471 and 2 477­A of the IPC read with Section 13(1)(c) & (d) and 13(2) of Prevention of Corruption Act, 1988. The trial court by order dated 24.01.2018 convicted the accused and awarded sentence. The   appellant,   who   was   one   of   the   accused,   was   awarded   the following sentence by the trial court:

   "44.   Satyendra   Kumar   Mehra   convicted   for offence   punishable   U/s   120­B/420,   120­B/467, 120­B/468 and 120­B/471 IPC:
U/s 120­B/420 IPC R.I. of Five(05) Years with fine of Rs.25,000/­ and in default of payment of fine S.I. for Three (03) Months.  U/s   120­B/467   IPC   R.I.   of   Five   (05)   Years with   fine   of   Rs.25,000/­   and   in   default   of payment of fine S.I. for Three (03) Months.  U/s 120­B/468 IPC R.I. of Five(05) Years with fine of Rs.25,000/­ and in default of payment of fine S.I. for Three (03) Months.  U/s 120­B/471 IPC R.I. of Five(05) Years with fine of Rs.25,000/­ and in default of payment of fine S.I. for Three (03) Months.  All the sentences shall run concurrently and the period undergone shall be set off.”

3. Aggrieved against the above conviction and sentence order the appellant filed Criminal Appeal No.176 of 2018 before the High   Court.   The   appellant   also   filed   application   praying suspension of sentence. After hearing, the High Court allowed the   application   granting   the   privilege   of   suspension   of sentence   to   the   appellant   and   directing   the   appellant   be released on bail on furnishing  bail bond of Rs.50,000/­ with two sureties. However, while allowing the application the High 3 Court  passed the following direction:

"Appellant should also deposit the fine amount awarded before court below.”

4. The appellant aggrieved by the aforesaid direction of the High Court to deposit the fine amount awarded by the court  below has come up in this appeal.

5. We   have   heard   Shri   Sunil   Kumar,   learned   senior   counsel appearing   for   the   appellant   and   Shri   Aman   Lekhi,   learned Additional   Solicitor   General   for   India   appearing   for   the respondent­State.

6. Learned counsel for the appellant relying on Section 357 sub­Section (2) of Criminal Procedure Code submits that since the   appellant   has   already   filed   an   appeal   before   the   High Court,   the   amount   of   fine   imposed   by   the   trial   court automatically stands stayed till the decision of the appeal. He submits that in the present case sentence of fine was also imposed by the trial court which is the subject of the appeal, hence Section 357(2) Cr.P.C. is attracted in the present case and the High Court should not have directed the appellant to deposit   the   fine   amount   awarded   by   the   trial   court   which direction   is   in   the   teeth   of   provisions   of   Section   357(2) Cr.P.C.  Learned  counsel  for  the  appellant   in   support   of  his submission   placed   reliance   on   the   judgment   of   this   Court 4 reported   in    Dilip   S.   Dahanukar   vs.   Kotak   Mahindra   Co.Ltd. And another, (2007) 6 SCC 528.

7. Shri Aman Lekhi, learned Additional Solicitor General for India   refuting   the   submission   of   learned   counsel   for   the appellant contends that the High Court did not commit error in directing the appellant to deposit the fine amount awarded by the court below. He submits that provisions of Section 357(2) Cr.P.C. is not attracted in the present case. He submits that what is contemplated by sub­Section (2) of Section 357 Cr.P.C. is “payment of the compensation as envisaged in Section 357(1) Cr.P.C.”. He submits that stay of payment of compensation is entirely different from the stay of fine which is a part of sentence imposed on accused.

8. He   submits   that   this   Court   in  Stanny   Felix   Pinto   vs. Jangid Builders Pvt. Ltd. and another, (2001) 2 SCC 416,  has also upheld a similar order passed by the High Court where the High   Court   directed   payment   of   rupees   four   lakhs   as   a condition to suspend the sentence which was part of the fine imposed as part of sentence. 

9. Learned   counsel   for   the   appellant   submits   that   judgment of this Court in  Stanny Felix Pinto(supra)  cannot be pressed into service with regard to interpretation of Section 357(2) Cr.P.C. which section is neither referred to nor adverted to 5 by this Court in above case. 

10.   We   have   considered   the   submissions   of   the   learned counsel   for   the   parties   and   perused   the   records.     From   the facts brought on record, it is clear that the sentence awarded to   the   appellant   was   a   sentence   of   R.I.   of   five   years   with payment of fine of Rs.25,000/­ and in default S.I. of three months. The said sentence was recorded in four cases and all sentences were to run concurrently. Thus, the fine was part of the   sentence.   The   question   which   is   to   be   answered   in   the present   case   is   as   to   whether   by   virtue   of   Section   357(2) Cr.P.C.,   the   said   fine   which   was   part   of   sentence automatically was stayed till the decision of the appeal and would not have been directed by the High Court to be deposited by the appellant. 

11. For   answering   the   question   we   need   to   reflect   upon   the statutory   scheme   as   delineated   by   Section   357(2)   Cr.P.C. Section 357(2) Cr.P.C. is part of Chapter XXVII­”THE JUDGMENT” of   the       Criminal   Procedure   Code,   1973.   Section   353   deals about   the   judgment,   its   pronouncement,   signatures,   delivery and   other   aspects.   Section   354   deals   with   language   and contents   of   judgment.   Section   355   refers   to   Metropolitan Magistrate's   judgment.   Section   356   deals   with   order   for notifying   address   of   previously   convicted   offender   and   then 6 Section 357 bears heading “Order to pay compensation”. Order to pay compensation, thus, is a part of judgment where Court directs payment for compensation. 

12. Section 357(1) Cr.P.C. contemplates that when a Court  imposes a sentence of fine or a sentence of which fine forms a part, the Court may, while passing judgment, order the whole or any part of the fine recovered to be applied. Section 357 is to the following effect:­ “357. Order to pay compensation.

(1) When   a   Court   imposes   a   sentence   of   fine or a sentence (including a sentence of death) of   which   fine   forms   a   part,   the   Court   may, when passing judgment order the whole or any part of the fine recovered to be applied­
(a) in   defraying   the   expenses   properly incurred in the prosecution;
(b) in   the   payment   to   any   person   of compensation for any loss or injury caused by the   offence,   when   compensation   is,   in   the opinion   of   the   Court,   recoverable   by   such person in a Civil Court;
(c) when   any   person   is   convicted   of   any offence   for   having   caused   the   death   of another   person   or   of   having   abetted   the commission   of   such   an   offence,   in   paying compensation   to   the   persons   who   are,   under the   Fatal   Accidents   Act,   1855   (13   of   1855), entitled   to   recover   damages   from   the   person sentenced for the loss resulting to them from such death;
7
(d) when   any   person   is   convicted   of   any offence   which   includes   theft,   criminal misappropriation,   criminal   breach   of   trust, or   cheating,   or   of   having   dishonestly received   or   retained,   or   of   having voluntarily   assisted   in   disposing   of,   stolen property knowing or having reason to believe the   same   to   be   stolen,   in   compensating   any bona fide purchaser of such property for the loss of the same if such property is restored to   the   possession   of   the   person   entitled thereto.” (2)  If the fine is imposed in a case which is subject   to   appeal,   no   such   payment   shall   be made before the period allowed for presenting the   appeal   has   elapsed,   or,   if   an   appeal   be presented, before the decision of the appeal.
(3) When a Court imposes a sentence, of which fine   does   not   form   a   part,   the   Court   may, when   passing   judgment   order   the   accused person   to   pay,   by   way   of   compensation,   such amount   as   may   be   specified   in   the   order   to the   person   who   has   suffered   any   loss   or injury   by   reason   of   the   act   for   which   the accused person has been so sentenced.
(4)  An   order   under   this   section   may   also   be made   by   an   Appellate   Court   or   by   the   High Court or Court of Session when exercising its powers of revision.
(5)  At   the   time   of   awarding   compensation   in any   subsequent   civil   suit   relating   to   the same   matter,   the   Court   shall   take   into account   any   sum   paid   or   recovered   as compensation under this section.”

13. All the circumstances in sub­section (1) of Section 357 8 refer   to   direction   to   pay   compensation   out   of   the   fine imposed. Thus, all the circumstances are circumstances where fine   imposed   and   recovered   is   to   be   applied   in   the   above circumstances. 

14. The   fine   is   thus   contemplated   to   be   utilised   for compensating different circumstances as enumerated in  Section 357(1) Cr.P.C. Sub­Section (2) of Section 357 Cr.P.C. has been engrafted  in reference to what was stated in sub­Section (1) of Section 357 Cr.P.C.  Crucial words used in sub­Section (2) of   Section   357   Cr.P.C.   are   “no   such   payment   shall   be   made before   the   period   allowed  for   presenting   the   appeal   has elapsed, or if an appeal be presented, before the decision of the   appeal”.   Thus,   what   is   prohibited   under   Section   357(2) Cr.P.C. is that payment of compensation utilising the fine be not paid till the period allowed for presenting the appeal has elapsed, or if an appeal is filed then before the decision of the   appeal.     It   does   not   involve   any   concept   of   stay   of sentence.

15. Chapter XXIX deals with the appeals. In the said Chapter Section   389   deals   with   the   subject   “suspension   of   sentence pending the appeal; release of appellant on bail”. Section 389(1) Cr.P.C. empowers the Appellate Court to order that the execution   of   the   sentence   or   order   appealed   against   be 9 suspended   and,   also,   if   he   is   in   confinement,   that   he   be released   on  bail.   Thus,  the  power   of   suspension  of   sentence emanates   from   Section   389   Cr.P.C.   where   Appellate   Court   is empowered to pass such an order. Sections 357 and 389 Cr.P.C. operate in two different fields. Section 357 Cr.P.C. contains an embargo that on passing a judgment of sentence of fine, the fine   be   not   utilised   for   payment   of   compensation   till contingency as mentioned therein does not occur. The sentence awarded by the Court including sentence of fine is in no way affected   by   embargo   contained   in   Section   357(2)   Cr.P.C.   The operation of Section 357(2) Cr.P.C. is restricted to payment of   compensation   as   contemplated   by   Section   357(1)   and   (3) Cr.P.C. The heading of the Section 357 Cr.P.C. i.e. “Order to pay compensation” as well as contents of the Section lead to only   one   conclusion   that   the   entire   provision   has   been engrafted   regarding   payment   of   compensation   out   of   the   fine imposed or when Court imposes sentence the fine is not part of which, the Court may by way of compensation direct payment of such amount to a person who has suffered the injury. We, thus, are   of   the   view   that   Section   357   Cr.P.C.   has   nothing   to   do with suspension of sentence awarded by the trial court and the sentence of fine imposed on the accused is in no way affected by   Section   357(2)   Cr.P.C.   The   present   is   not   a   case   where 10 trial court has directed payment of any compensation to anyone out   of   fine   imposed.   There   is   no   direction   for   payment   of compensation in the order of the trial court nor present case is covered by the circumstances mentioned in sub­clauses (a) to (d) of Section 357(1) Cr.P.C. Present is also not a case of Section   357(3)   Cr.P.C.   Hence,   there   is   no   question   of applicability of Section 357(2) Cr.P.C. The heading of Section 357 Cr. P.C. throws considerable light in finding the object and   purpose   of   the   Section.   Section   357   Cr.P.C.   is   only attracted   when   Court   orders   for   payment   of   compensation. Section   357   is   not   attracted   in   any   other   case.   It   is   well settled that heading of the Section plays a role when there is any   doubt   in   interpretation   of   the   Section.   This   Court   in Bhinka   and   others   vs.   Charan   Singh,   AIR   1959   SC   960,  while examining the role of a heading of section while interpreting a section noticed the following principle;

“15......Section   180   provides   for   the eviction of a person who but for the eviction would become a hereditary tenant by efflux of the   prescribed   time.   If   there   is   any ambiguity — we find none — it is dispelled by the heading given to the section and also the description   of   the   nature   of   the   suit   given in the Schedule. The heading reads thus:

“Ejectment of person occupying land without title.” “Maxwell On Interpretation of Statutes, 10th 11 Edn., gives the scope of the user of such a heading   in   the   interpretation   of   a   section thus, at p. 50:
“The   headings   prefixed   to   sections   or   sets of   sections   in   some   modern   statutes   are regarded   as   preambles   to   those   sections. They cannot control the plain words of the statute   but   they   may   explain   ambiguous words.” If   there   is   any   doubt   in   the   interpretation of   the   words   in   the   section,   the   heading certainly   helps   us   to   resolve   that doubt.......”

16. The   similar   proposition   was   again   reiterated   by three­Judge Bench of this Court in  N.C.  Dhoundial  vs. Union of India and others, (2004) 2 SCC 579,  where in paragraph 15 following has been held:

“15......The   language   employed   in   the marginal heading is another indicator that it is a jurisdictional limitation. It is a settled   rule   of   interpretation   that   the section   heading   or   marginal   note   can   be relied upon to clear any doubt or ambiguity in the interpretation of the provision and to   discern   the   legislative   intent   (vide Uttam   Das   Chela   Sunder   Das   v.   Shiromani Gurdwara Parbandhak Committee, (1996) 5 SCC 71 and Bhinka v. Charan Singh, AIR 1959 SC
960).”

17. Now we come to the judgment which has been relied on by the   learned   counsel   for   the   appellant,   i.e.,  Dilip   S. Dahanukar (supra).  In the above case this Court had occasion to   interpret   Section   357   Cr.P.C.   The   appellant   therein   was accused   No.2,   who   was   directed   to   pay   compensation   to   the 12 complainant of Rs.15 lakh apart from the simple imprisonment. The facts have been noted in paragraph 3 of the judgment which is to the following effect:

“3.  Accused   1,   M/s   Goodvalue   Marketing Co.   Ltd.,   a   company   registered   and incorporated   under   the   Companies   Act,   1956 and   Accused   2,   the   appellant   herein   were convicted   for   commission   of   an   offence involving   Section   138   of   the   Act   by   a judgment   of   conviction   and   sentence   dated 23­2­2006 holding:
“Accused   1   company,   M/s   Goodvalue Marketing   Co.   Ltd.   stands   convicted   for the   offence   punishable   under   Section   138 read   with   Section   141   of   the   Negotiable Instruments Act.
Accused 1 company is sentenced to pay a fine   of   Rs   25,000   (Rupees   twenty­five thousand only). In default of payment of fine,   Accused   2   Mr   Dilip   Dahanukar,   the Chairman   of   Accused   1   and   representative at   the   trial,   shall   suffer   SI   for   1 month.
Accused   2   Mr   Dilip   S.   Dahanukar,   stands convicted   for   the   offence   punishable under   Section   138   read   with   Section   141 of the Negotiable Instruments Act, 1881.
Accused 2 is sentenced to suffer SI for 1 month.
Accused 2 is also directed to pay compensation to   the   complainant,   quantified   (sic)   at   Rs 15,00,000   (Rupees   fifteen   lakhs   only),   under Section 357(3) CrPC. Accused 2 is entitled to pay   the   amount   of   compensation   in   two   equal monthly  instalments  of   Rs  7,50,000   each.   The first instalment of Rs 7,50,000 shall be paid on   or   before   23­3­2006   and   the   second 13 instalment of Rs 7,50,000 shall be paid on or before 24­4­2006; in default of payment of the amount of compensation Accused 2 shall suffer further SI for 2 months.”

18. An appeal was preferred against the conviction order. The Appellate   Court   while   admitting   the   appeal   directed   the accused to deposit a sum of Rs.5 lakh each within four weeks from   the   said   date.  Writ   petition   was   filed  questioning  the legality of the said order of the Appellate Court which was dismissed and thereafter the matter was taken to this Court. A submission was raised before this Court that having regard to the   provisions   of   Section   357(2)   of   the   Code,   the   impugned judgment is wholly unsustainable inasmuch as in terms thereof the amount of fine imposed would automatically be suspended.

19. In the above case this Court considered sub­Sections (1), (2)   and   (3)   of   Section     357   of   the   Code   and   observed   that sub­Section   (2)   shall   be   applicable   both   in   regard   to compensation   as   well   as   direction   under   sub­Section   (3).   In paragraphs 43, 44 and 45 following has been laid down:

“43.  It   does   not   appeal   to   us   that although   a   compensation   payable   out   of   the quantum   of   fine   would   remain   stayed   under sub­section (2) of Section 357 of the Code, if a   compensation   is   directed   to   be   paid   under sub­section   (3)   thereof,   the   same   would   not attract   the   said   provision.   (See  P.   Suresh Kumar v. R. Shankar, [(2007) 4 SCC 752].) 14
44. Magistrates cannot award compensation in addition to fine. When a fine is imposed, however,   the   private   party   has   no   right   to insist   that   compensation   may   be   awarded   to him out of the amount of fine. The power to award   compensation   under   Section   357(3)   is not   an   ancillary   power.   It   is   an   additional power. (See  Balraj  v.  State of U.P., [(1994) 4 SCC 29].)
45.  Clause   (b)   of   sub­section   (1)   of Section   357   and   sub­section   (1)   of   Section 357 and sub­section (3) of Section 357 seek to   achieve   the   same   purpose.   What   is necessary   is   to   find   out   the   intention   of the   lawmaker   and   the   object   sought   to   be achieved.   Sub­section   (2)   of   Section   357 uses   the   word   “fine”.   It   does   not   say   that what   would   be   stayed   i.e.   application   of fine. Sub­section (2) of Section 357, in our opinion,   does   not   contemplate   any   other interpretation.   Even   assuming   that   Mr   Lalit was   correct   in   his   submission,   still   then sub­section   (3)   would   be   squarely attracted.”

20. Referring   to   Section   389   Cr.   P.C.,   this   Court   noticed that   suspension  of   a   sentence   and   enlarging  an   appellant   on bail, who is convicted and realisation of fine has been dealt with by Parliament under different provisions of the Code. In paragraph 51 following has been laid down:

“51.  Section   389   does   not   deal   with exactly   a   similar   situation.   Section   389   of the   Code   is   to   be   read   with   Section   387 thereof.   Suspension   of   a   sentence   and enlarging   an   appellant   on   bail,   who   is convicted   and   realisation   of   fine   has   been dealt   with   by   Parliament   under   different provisions   of   the   Code.   The   power   of   the court, thus, to suspend a sentence in regard 15 to   realisation   of   compensation   may   be different   from   that   of   a   direction   in realisation of fine.”

21. This   Court   in   the   aforesaid   case   has   noted   the distinction between fine of Rs.25,000/­ which was imposed on the Company and compensation of Rs.15 lakh which was directed to be paid by the Chairman of the Company. In paragraph 71 the aforesaid was mentioned to the following effect:

“71.  We   are   prima   facie   of   the   opinion (without going into the merit of the appeal) that the direction of the learned trial Judge appears   to   be   somewhat   unreasonable.   The appellant   herein   has   been   sentenced   to imprisonment.   Only   fine   has   been   imposed   on the   Company.   Thus,   for   all   intent   and purpose, the learned trial Judge has invoked both sub­sections (1) and (3) of Section 357 of   the   Code.   The   liability   of   the   appellant herein   was   a   vicarious   one   in   terms   of Section   141   of   the   Negotiable   Instruments Act.   The   question   may   also   have   to   be considered   from   the   angle   that   the   learned trial   Judge   thought   it   fit   to   impose   a   fine of   Rs   25,000   only   upon   the   Company.   If   that be   so,   a   question   would   arise   as   to   whether an amount of compensation for a sum of Rs 15 lakhs should have been directed to be paid by the Chairman of the Company. We feel that it is not.”

22. This   Court   ultimately   directed   the   appellant   to   deposit rupees   one   lakh   towards   the   compensation   and   recorded   its conclusion in paragraph 72 which is to the following effect:

“72. We, therefore, are of the opinion:
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(i) in a case of this nature, sub­section (2) of   Section   357   of   the   Code   of   Criminal Procedure   would   be   attracted   even   when   the appellant was directed to pay compensation;
(ii)   the   appellate   court,   however,   while suspending   the  sentence,  was   entitled  to   put the appellant on terms. However, no such term could   be   put   as   a   condition   precedent   for entertaining   the   appeal   which   is   a constitutional and statutory right;
(iii)   the   amount   of   compensation   must   be   a reasonable sum;
(iv)   the   court,   while   fixing   such   amount, must   have   regard   to   all   relevant   factors including the one referred to in sub­section (5)   of   Section   357   of   the   Code   of   Criminal Procedure;
(v) no unreasonable amount of compensation can be directed to be paid.”

23. This   Court,   in   the   above   case,   was   dealing   with   the question of payment of compensation which was awarded by the Court under sub­Section (3) of  Section 357 Cr.P.C. The Court was not dealing with fine which was part of the sentence. The Court, thus, had no occasion to consider the issue which has arisen in the present case. We, in the present case, are not concerned with payment of any compensation or applicability of Section   357(2)   Cr.P.C.   with   regard   to   payment   of   any   such compensation. 

24. We   also   need   to   notice   the   judgment   of   this   Court   in 17 Stanny   Felix   Pinto   (supra).  In   the   above   case   along   with sentence of imprisonment, fine was also imposed under Section 138  of   the   Negotiable   Instruments   Act.   The   High  Court   while entertaining the revision granted suspension of the sentence by   imposing   a   condition   that   part   of   the   fine   shall   be remitted in court within a specified time which direction was challenged   in   this   Court.   This   Court   upheld   the   said direction. Following was held in paragraph 2:

“2.  When   a   person   was   convicted   under Section 138 of the Negotiable Instruments Act and   sentenced   to   imprisonment   and   fine   he moved   the   superior   court   for   suspension   of the   sentence.   The   High   Court   while entertaining   his   revision   granted   suspension of the sentence by imposing a condition that part   of   the   fine   shall   be   remitted   in   court within   a   specified   time.   It   is   against   the said   direction   that   this   petition   has   been filed. In our view the High Court has done it correctly and in the interest of justice. We feel   that   while   suspending   the   sentence   for the   offence   under   Section   138   of   the Negotiable   Instruments   Act   it   is   advisable that   the   court   imposes   a   condition   that   the fine   part   is   remitted   within   a   certain period.   If   the   fine   amount   is   heavy,   the court   can   direct   at   least   a   portion   thereof to be remitted as the convicted person wants the   sentence   to   be   suspended   during   the pendency   of   the   appeal.   In   this   case   the grievance   of   the   appellant   is   that   he   is required   by   the   High   Court   to   remit   a   huge amount of rupees four lakhs as a condition to suspend   the   sentence.   When   considering   the total   amount   of   fine   imposed   by   the   trial court   (twenty   lakhs   of   rupees)   there   is nothing   unjust   or   unconscionable   in   imposing such a condition. Hence, there is no need to 18 interfere with the impugned order. As such no notice   need   be   issued   to   the   respondent. Appeal is accordingly dismissed.”
25. It is true that this Court while deciding the said case did   not   consider  Section   357(2)   Cr.P.C.   Learned   counsel   for the   appellant   is   right   in   his   submission   that   the   above judgment   cannot   be   held   to   be   laying   down   any   ratio   on applicability of Section 357(2) Cr.P.C. 
26. We may also refer to a judgment of Karnataka High Court in Irrigation Engineering Company (India) Private Limited and Anr. vs. The Small­Scale Industrial Development Bank of India (SIDBI), 2003 (6) KarLJ 387, where while interpreting Section 357(2)   Cr.P.C.,   Karnataka   High   Court   had   observed   that   word “payment”   found  in   Section   357(2)   Cr.P.C.   does   not   refer   to the 'deposit' of compensation or fine amount by the accused.

In the case before the High Court appellant was convicted with sentence of fine. In appeal the High Court directed suspension of sentence on the condition that the appellant shall deposit 20%   of   the   total   fine   which   was   challenged   before   the   High Court on the ground that in view of Section 357(2) Cr.P.C., Appellate Court was not right in asking them to deposit 20% of the total fine. In paragraphs 8,9 and 10 following was stated:

“8.  What Section 357(2) of the Cr. P.C. says is as under:
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"If   the   fine   is   imposed   in   a   case which   is   subject   to   appeal,   no   such payment   shall   be   made   before   the period   allowed   for   presenting   the appeal   has   elapsed,   or,   if   an   appeal be   presented,   before   the   decision   of the appeal".

Nowhere   it   says   that   the   Court   of   Appeal, while   suspending   sentence   imposed   on   an accused,   cannot   impose   a   condition   of depositing a part of fine amount. It is true that   as   per   the   decision   relied   on   for   the petitioners,   stay   engrafted   under   the   said provision   of   law   equally   applies   to   the compensation granted under Sub­section (3) of Section   357   of   the   Code,   but   it   cannot   be taken   to   hold   or   read   that   the   Appellate Court   cannot   pass   a   conditional   order   for suspending a sentence.

9.  According to me, the word "payment" found in   Section   357(2)   of   the   Cr.   P.C.,   does   not refer   to   the   'deposit'   of   compensation   or fine amount by an accused in pursuance of an order   passed   by   Appellate   Court   while suspending   sentence   imposed   on   an   accused since, to my mind, the word "payment" refers to payment to be made to the person, who is ordered   to   be   paid   compensation   and   not   the fine amount, inclusive of compensation amount to   be   'deposited'   by   accused.   The   stay engrafted   into   the   said   provision   of   law   is with   reference   to   the   'payment'   of   such amount   earlier   to   the   expiry   of   the   appeal period   or,   where   appeal   has   been   preferred, during   the   pendency   of   such   appeal.   So, Section 357 need not and cannot be read with Section 389 of the Cr. P.C. In fact, neither the   petitioners/appellants   applied   for,   nor the Appellate Court ordered suspension of the sentence   relating   to   compensation   of   Rs.   16 lakhs   only.   On   the   other   hand,   when   the suspension   of   impugned   sentence   passed against them is seen with the power given to the Appellate Court under Section 389 of the 20 Cr.   P.C.,   besides   the   ambit   or   scope   of Section   357   of   the   Cr.   P.C.,   there   will   not be any difficulty in holding that there is no error of record or infirmity or irregularity or illegality in the impugned order passed by the Court of Sessions suspending the sentence on   condition   of   depositing   20%   of   the   total fine amount imposed on them (petitioners).

10.  In   this   view   of   the   matter,   neither Section   357(2)   of   the   Cr.   P.C.   nor   the decision relied on for the petitioners is of any help to the petitioners.“

27. Learned   Counsel   for   the   appellant   has   relied   on   three judgments of High Courts, one of Punjab and Haryana High Court and   two   judgments   of   Patna   High   Court   in   support   of   his submissions. We need to refer to above judgments relied by the learned   counsel   for   the   appellant.   The   first   judgment   is judgment   of   Punjab   and   Haryana   High   Court   reported   in  2006 (3) PLR 194, Kedar Nath versus State of Haryana. In the above case, the petitioner was convicted for offence under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of several cheques amounting to Rs.1,50,000/­. The petitioner was sentenced to undergo rigorous imprisonment for period of one year and to pay a fine of Rs.3,00,000/­. It was also ordered that   out   of  fine   of  Rs.3,00,000/­,  a   sum   of  Rs.2,50,000/­be given to the complainant as compensation. An appeal was filed where Appellate Court suspended the sentence on the condition 21 that petitioner will deposit an amount of Rs.1,50,000/­ before the trial court. The aforesaid condition was challenged by the petitioner   in   the   High   Court.   It   was   submitted   that   in accordance with Section 357 sub­section (2) Cr.P.C. petitioner was   not   liable   to   pay   any   amount   of   fine.   The   High   Court accepted the submission relying on Section 357 sub­section (2) Cr.P.C.. In paragraph 8 of the judgment, following was held:

“8. Against the judgment of conviction and order to sentence, an appeal was preferred by the petitioner, which was admitted for hearing. While suspending the sentence,   the   Appellate   Court   imposed   a   condition for depositing an amount of Rs.1,50,000/­ out of the amount   of   fine   of   Rs.3   lacs   imposed   by   the   trial Court.   In   my   opinion,   by   imposing   the   said condition, the petitioner was compelled to pay the amount of fine, which according to sub­section (2) of Section 357 Cr.P.C., the accused is not liable to pay   till   the   final   adjudication   of   the   appeal. Merely   because   out   of   the   amount   of   fine   of   Rs.3 lacs,   Rs.2,50,000/­   was   ordered   to   be   paid   to   the complainant as compensation, in my opinion, does not change the nature of fine. The judgment of the trial court   is   very   clear   that   a   fine   of   Rs.3   lacs   was imposed   along   with   the   sentence   of   one   year.   The facts   of   this   case   are   squarely   covered   by   the decision   of   the   this   Court   in   Sabita   Behl’s case(supra).   Thus,   in   my   opinion,   the   Appellate Court was not justified while imposing the impugned condition   directing   the   petitioner   to   deposit   an amount   of   Rs.1,50,000/­   before   the   trial   Court   at the time of furnishing the bail bonds in view of the order   of   suspension   of   sentence   passed   by   the Appellate Court.”

28. The   above   case   is   clearly   distinguishable   from   the present case. In the above case, there was direction within 22 the   meaning   of   Section   357   sub­section   (1)   (b)   Cr.P.C.   for payment   of   compensation.   Hence   Section   357   sub­section   (2) Cr.P.C.   was   relied   by   the   Court.   Present   is   not   a   case   of payment of any compensation out of fine imposed on appellant. Thus, the above case in no manner helps the appellant.

29. Now we come to the second case relied by the appellant i.e.   Division   Bench   Judgment   of   Patna   High   court   in  Bharat Mandal son of Sitaram Mandal & Ors. Vs. The State of Bihar, 2012 (2) PLJR 855.  In the above case accused were convicted under   Section   307/149   IPC   and   Section   27   of   the   Arms   Act. They   were   sentenced   for   life   imprisonment   and   further directed   to   pay   a   fine   of   Rs.20,000/­   each.   The   appeal   was filed   in   which   the   Appellate   Court   declined   to   stay   the payment of fine. The appellant pressed for stay of payment of fine   which   was   considered   by   the   High   Court.   High   Court relied   on   Section   357   sub­section   (2)   Cr.P.C.   and   accepted the submission of the appellant that the fine was not to be paid. Following was held in paragraph 7:

“7.   The   argument   of   Mr.   Yogesh   Chandra   Verma, learned counsel for the appellant is based squarely upon  the   literal  interpretation  from  the   Section. In  our  view,  the  submission as  made by  Sri  Verma has   to   be   accepted.   On   the   plain   reading   of sub­section   (2)   of   Section   357   of   the   Code   of Criminal Procedure we find that there is absolutely no ambiguity in the provision as engrafted by the 23 legislature, it clearly stipulates firstly, that no such   payment   shall   be   made   before   the   period allowed   for   presenting   the   appeal   has   elapsed. Thus, this stops any court from enforcing payment, for the period in which appeal could be filed. It then secondly provides that the stay of action of realization or payment would continue if an appeal is   presented   till   the   decision   of   the   appeal. “Decision of the Appeal” would only mean the final judgment   in   the   appeal   and   not   any   order   at   any interlocutory stage because that would not be the decision of the appeal. Thus, on the plain reading of Section 357(2) of the Code of Criminal Procedure a   fine   imposed,   would   automatically   get   stayed firstly for the period which is available to file appeal and once the appeal is filed then till the decision of the appeal. That is the mandate of the legislature   itself,   clear   and   unambiguous.   The situation   would   be   different,   if   instead   of awarding   fine,   in   terms   of   Section   357(3)   of   the Code   of   Criminal   Procedure   compensation   only   is awarded.   In   such   a   case,   the   appellate   court   has judicial   discretion   to   stay   or,   not   to   stay   the compensation so awarded depending upon the facts of the case under consideration.”

30. From the facts noticed by the High Court it is not clear as to whether the amount of fine Rs.20,000/­ was directed to be paid to the victim. No such facts have been noticed in the judgment. If there was no direction to pay any compensation out   of   the   fine   imposed   the   facts   of   the   said   case   are similar to the case in hand. We have taken the view that if there   is   no   direction   to   pay   any   compensation   out   of   fine imposed, Section 357(2) Cr.P.C. is not attracted. We are of the   view   that   the   High   Court's   observation   that   in   view   of Section   357   sub­section   (2)   of   Cr.P.C.   the   realisation   of 24 fine   would   automatically   get   stayed   does   not   take   into consideration the distinction in a case where fine is part of sentence and there is direction to pay compensation and in a case where there is no direction to pay any compensation. 

31. The   third   case   relied   by   the   learned   Counsel   for   the appellant   is   again   a   Division   Bench   Judgment   of   Patna   High Court in  Criminal Appeal (DB) No.529 of 2012, Naresh Yadav@ Naresh   Mahto   &   Ors.   Vs.   The   State   of   Bihar,   decided   on 26.06.2012.  The Judgment of Patna High Court has been placed on record along with the short submissions of learned counsel for the appellant. A perusal of the judgment   indicate that Patna High Court has not noticed the facts of the case and the   nature   of   Order   passed   by   the   trial   Court   regarding imposition of fine. The applicant prayed for modification of Order of the High Court by which the direction was issued for depositing the fine. Section 357 sub­section (2) Cr.P.C. was relied and the Division Bench relying on earlier judgment of Patna High Court in Bharat Mandal & Ors. (Supra) modified the last paragraph of the Order dated 04.06.2012 providing that the fine imposed shall remain stayed till the decision of the case. The above judgment relies only on Bharat Mandal & Ors. which has already been noted above by us hence this judgment also does not help the appellant.

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32. The   object   and   purpose   of   Section   357   Cr.P.C.   was considered by this Court in Hari Singh vs. Sukhbir Singh and others,   (1988)   4   SCC   551.  This   Court   held   that   the   power given to the Court to direct for payment of compensation is intended   to   do   something   for   the   victim.   The   provision   was held to be a step   forward in our criminal justice system. Following were the observations made in paragraph 10:

"10...It   empowers   the   court   to   award compensation   to   victims   while   passing judgment   of   conviction.   In   addition   to conviction,   the   court   may   order   the   accused to pay some amount by way of compensation to victim   who   has   suffered   by   the   action   of accused.   It   may   be   noted   that   this   power   of courts to award compensation is not ancillary to   other   sentences   but   it   is   in   addition thereto.   This   power   was   intended   to   do something   to   reassure   the   victim   that   he   or she is not forgotten in the criminal justice system.   It   is   a   measure   of   responding appropriately to crime as well of reconciling the victim with the offender. It is, to some extent, a constructive approach to crimes. It is   indeed   a   step   forward   in   our   criminal justice   system.   We,   therefore,   recommend   to all   courts   to   exercise   this   power   liberally so as to meet the ends of justice in a better way.”

33. What   is   the   purpose   and   object   of   sub­Section   (2)   of section   357   Cr.P.C.?   Section   357(1)   Cr.P.C.   contemplated utilisation   of   fine   imposed   in   certain   circumstances   as compensation to be paid to victim. Sub­section (2) engrafted 26 an embargo that such payment shall not be made till the period allowed for appeal has elapsed or if the appeal is filed, till the   same   is   decided.   Legislature   was   conscious   that compensation   paid   if   utilised,   there   may   not   be   appropriate measures   to  recover  the  said   amount  utilised   from   victim   to whom   the   compensation   is   paid   hence   embargo   in   payment   has been engrafted in sub­section (2).   Thus at best sub­section (2)   of   Section   357   Cr.P.C.   is   a   provision   which   differs   or withholds   the   utilisation   of   the   amount   of   compensation awarded till the limitation of appeal elapses or if filed till it is decided.  The provision in no manner stays the sentence of   fine   during   the   pendency   of   the   appeal.   The   purpose   for which sub­section (2) of Section 357 Cr.P.C. has been enacted is different as noted above and it never contemplates as stay of sentence of fine imposed on accused.

34. We,   however,   make   it   clear   that   Appellate   Court   while exercising   power   under   Section   389   Cr.P.C.   can   suspend   the sentence   of   imprisonment   as   well   as   of   fine   without   any condition   or   with   conditions.   There   are   no   fetters   on   the power   of   the   Appellate   Court   while   exercising   jurisdiction under   Section   389   Cr.P.C..   The   Appellate   Court   could   have suspended   the   sentence   and   fine  both   or  could   have   directed for deposit of fine or part of fine.

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35. Learned counsel for the appellant has also relied on the judgment of this Court in  K.C. Sareen vs. C.B.I. Chandigarh, (2001)   6   SCC   584,  where   this   Court   has   made   the   following observation:

"No doubt when the appellate court admits the   appeal   filed   in   challenge   of   the conviction and sentence for the offence under the   PC   Act,   the   superior   court   should normally suspend the sentence of imprisonment until disposal of the appeal, because refusal thereof   would   render   the   very   appeal   otiose unless such appeal could be heard soon after the filing of the appeal.”

36. The   above   observation   was   made   by   this   Court   in   the context of suspension of sentence of imprisonment. The present is   not   a   case   where   question   of   suspension   of   sentence   of imprisonment   is   involved   rather   Appellate   Court   has   already suspended   the   sentence   of   imprisonment.   The   above   case   also thus does not help the appellant in the facts of the present case. 

37. In view of the foregoing discussion, we are of the view that Section 357(2) Cr.P.C. was not attracted in the present case   since   there   was   no   direction   of   payment   of   any compensation   out   of   the   fine   imposed   by   the   trial   court   as part of sentence. Section 357 Cr.P.C.(2) comes into play only where any order of payment of compensation utilising the fine imposed   as   sentence   under   Section   357(1)   Cr.P.C.   or 28 compensation as directed under Section 357(3) Cr.P.C. is made. Present   being   neither   a   case   of   Section   357(1)   Cr.P.C.   nor Section   357(3),   sub­section(2)   of   Section   357   Cr.P.C.   is clearly   not   applicable   and   the   submissions   raised   by   the learned counsel for the appellant are without any substance. We, thus, do not find any infirmity in the impugned order of the High Court where the High Court has directed the appellant to deposit the fine awarded by the trial court. In the result, the appeal is dismissed.

...............................J. ( A.K. SIKRI ) ...............................J. ( ASHOK BHUSHAN ) NEW DELHI, MARCH 23, 2018.