Allowed

Sainath Fertilizers v. M/S Zuari Agro Chemicals Limited

Karnataka HC17 Jan 2024CRL.P/11420/2023

Case brief

AI extract

What is this about?

Accused convicted under Section 138 NI Act challenged the appellate court's order vacating suspension of sentence after they failed to deposit 20% interim compensation in time. The High Court held non-deposit warrants recovery as fine, not vacation of the stay, set aside the impugned order and restored the suspension.

What did the court decide?

Impugned order dated 20.10.2023 set aside; suspension of sentence restored; petitioners permitted to deposit 20% fine amount; appeal to continue.

Sainath Fertilizers Vs M/S Zuari Agro Chemicals Limited — Cheque Dishonour | Karnataka HC (2024)

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1 - NC: 2024:KHC:2120 CRL.P No. 11420 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 17^TH DAY OF JANUARY, 2024

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BEFORE

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THE HON'BLE MR JUSTICE K.NATARAJAN CRIMINAL PETITION NO. 11420 OF 2023

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BETWEEN:

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SAINATH FERTILIZERS, RAGHOJI BUILDING, NEHRU GUNJ NO.1433/2, KALABURGI – 585 104.

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SUSHIL KUMAR, AGED ABOUT 53 YEARS, S/O MALASHETTAPPA, PROPRIETOR, M/S SAINATH FERTILIZERS, RAGHOJI BUILDING, NEHRU GUNJ, NO.1433/2, KALABURGI – 585 104.

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…PETITIONERS

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(BY SMT. RACHANA BHARADHWAJ R., ADVOCATE)

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Digitally signed by V KRISHNA Location: HIGH COURT OF KARNATAKA

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AND:

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M/S. ZUARI AGRO CHEMICALS LIMITED, REGISTERED OFFICE AT NO.28, 1^ST FLOOR, UNION STREET, CUBBON ROAD, BENGALURU – 560 001. REPRESENTED BY AUTHORIZED SIGNATORY, MR. VISHNUVARDHANA REDDY K.

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…RESPONDENT

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(RESPONDENT SERVED-UNREPRESENTED)

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THIS CRL.P. IS FILED U/S 482 OF CR.P.C., PRAYING TO SET ASIDE THE ORDER DATED 20.10.2023 PASSED IN CRIMINAL APPEAL NO.102 OF 2023, PASSED BY THE LXIV ACC AND SJ, BENGALURU

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NC: 2024:KHC:2120 CRL.P No. 11420 of 2023

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(CCH-65), VACATING THE INTERIM ORDER OF SUSPENSION GRANTED ON 27.01.2023 IN THE ABOVE CASE.

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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This petition is filed by the petitioners - accused

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Nos.1 and 2 under Section 482 of Cr.P.C., for quashing the impugned order dated 20.10.2023 passed by the LXIV ACC

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& SJ, Bengaluru (CCH-65) in Criminal Appeal No.102/2023 for having vacated the suspension order granted by the First Appellate Court on the application filed by the respondent for vacating the Stay.

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Heard the arguments of the learned counsel appearing for the petitioners.

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The respondents though served, remained

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unrepresented.

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The case of the petitioners is that the

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petitioners faced trial for an offence punishable under Section 138 of The Negotiable Instruments Act, 1881 ('NI

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3 - NC: 2024:KHC:2120 CRL.P No. 11420 of 2023

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Act' for short). They had been convicted and sentenced to pay a fine and in default of payment of fine amount accused No.2 shall undergo Simple Imprisonment for a period of six months in C.C.No.1428/2021. Feeling aggrieved by the conviction, the petitioners had filed an appeal before LXIV ACC & SJ, Bengaluru (CCH-65) in Criminal Appeal No.102/2023. The First Appellate Court while suspending the sentence under Section 389 of Cr.P.C., passed an order to deposit 20% of the fine amount as provided under Section 138 of the NI Act. But the petitioners are not able to deposit within the time and the respondent has moved the memo for vacating the Interim order. Accordingly, the Trial Court vacated the interim order, which is under challenge.

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Having heard the arguments of the learned

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counsel appearing for the petitioners on record, the First Appellate Court is having a power to suspend the sentence by imposing 20% of the fine amount as interim compensation under Section 138 of the NI Act and the

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4 - NC: 2024:KHC:2120 CRL.P No. 11420 of 2023

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interim compensation is liable to pay within 60 days and another 30 days can be extended if sufficient cause is shown by the appellants-accused. Of course, the interim compensation is recoverable as a fine under Section 441 read with Section 421 of Cr.P.C.

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In catena of decisions, this Court has held the interim compensation is liable to be recovered as fine. Such being the case, the First Appellate Court ought to have allowed the respondent - Complainant to recover the same in accordance with law, but question of vacating the interim order and vacating the suspension of sentence, is not correct. Therefore, the order under challenge is liable to be set aside.

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The petitioners are also permitted to deposit 20% of the fine amount as ordered by the First Appellate Court on 16.01.2024. When the amount is deposited, this respondent has to receive the same by filing the necessary application before the First Appellate Court. When such

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NC: 2024:KHC:2120 CRL.P No. 11420 of 2023

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being the case, the petition deserves to be allowed. Accordingly, the following order:

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ORDER

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(i) The petition is allowed.;

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(ii) The impugned order dated 20.10.2023 passed by the LXIV ACC & SJ, Bengaluru (CCH-65) in Criminal Appeal No.102/2023, is hereby set aside.;

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(iii) The suspension order passed by the First Appellate Court is hereby restored and the First Appellate Court is directed to continue the proceedings and dispose of the appeal in accordance with law.

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Sd/JUDGE

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List No.: 1 Sl No.: 23

Sainath Fertilizers v. M/S Zuari Agro Chemicals Limited

Case brief

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What did the court decide?

Sainath Fertilizers v. M/S Zuari Agro Chemicals Limited

Case brief

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What did the court decide?

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