Dismissed¶38

Nilanjana Fashion Pvt. Ltd. v. Kotak Mahindra Bank

Madras HC24 Feb 2025CRL OP/15794/2024

Case brief

AI extract

What is this about?

Suspension of sentence condition; Section 148 Negotiable Instruments Act 20% deposit ceiling vs 5% imposed; Section 138 NI Act conviction and compensation; compounding of cheque dishonour offence on settlement; Section 482 Cr.P.C.; Crl.O.P.No.15794 of 2024; C.A.No.344 of 2024; Crl.M.P.No.12958 of 2024; C.C.No.1534 of 2018; Nilanjana Fashion Pvt Ltd v Kotak Mahindra Bank; Principal Sessions Judge Chennai; Metropolitan Magistrate FTC-IV George Town; decision dated 24.02.2025.

What did the court decide?

As per Section 148 of the Negotiable Instruments Act, the appellate Court can impose a condition to deposit 20% of the compensation amount while suspending the sentence. ¶36

Nilanjana Fashion Pvt. Ltd. Vs Kotak Mahindra Bank — Cheque Dishonour | Madras HC (2025)

What the court decided

AI extract

Outcome

Dismissed

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Issue for consideration

Whether the order dated 29.04.2024 passed in Crl.M.P.No.12958 of 2024 in C.A.No.344 of 2024, which suspended the sentence subject to deposit of 5% of the total compensation amount, should be set aside and exemption from such deposit granted.

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Court's answer

As per Section 148 of the Negotiable Instruments Act, the appellate Court can impose a condition to deposit 20% of the compensation amount while suspending the sentence.

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Ratio / Principle

In the present case the appellate Court directed the petitioners to deposit only 5% of the compensation amount before the trial Court, i.e., below the 20% ceiling under Section 148 of the Negotiable Instruments Act.

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Key takeaways

This Court finds no infirmity or illegality in the order passed by the Court below.ratio¶37
If any settlement is reached between the parties, they can approach the appellate Court in C.A.No.344 of 2024 to compound the offence.obiter¶36

Detailed headnote1 paragraphs

Madras High Court (G.K.ILANTHIRAIYAN, J.) dismissed Crl.O.P.No.15794 of 2024 filed under Section 482 Cr.P.C. by the four accused (M/s.Nilanjana Fashion Pvt. Ltd. and its directors) in a Section 138 Negotiable Instruments Act complaint by Kotak Mahindra Bank (C.C.No.1534 of 2018, Metropolitan Magistrate, FTC-IV, George Town, Chennai), who after trial were sentenced to three months simple imprisonment with compensation of Rs.7,95,00,000/- payable by the first accused company and Rs.50,00,000/- payable by the second accused. They challenged the Principal Sessions Judge, Chennai's order dated 29.04.2024 in Crl.M.P.No.12958 of 2024 in C.A.No.344 of 2024, which suspended the sentence subject to deposit of 5% of the compensation amount within sixty days, and sought exemption from the deposit. Holding: under Section 148 of the Negotiable Instruments Act the appellate Court can impose a condition to deposit up to 20% of the compensation amount while suspending sentence; the direction to deposit only 5% caused no infirmity or illegality; if the parties settle, they may approach the appellate Court in C.A.No.344 of 2024 to compound the offence.

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Crl.O.P.No.15794 of 2024

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 24.02.2025

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CORAM:

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THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN

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Crl.O.P.No.15794 of 2024

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M/s.Nilanjana Fashion Pvt. Ltd., Rep. by its Authorized Signatory/ Director Shankar Saraf, Shreelekha Apartments, 42A, Park Street, 6^th Floor, Kolkata – 700 016.

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Shankar Saraf Authorized Signatory/Director, M/s.Nilanjana Fashion Pvt. Ltd., Rukmani Parasmani Tower, 92/1, Moulana Abdul Kalam Azad, Sarani, Kolkata – 700 054.

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Hari Krishna, Director, M/s.Nilanjana Fashion Pvt. Ltd., Kolkata – 700 054.

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Hari Ram Saraf, Director, M/s.Nilanjana Fashion Pvt. Ltd., Kolkata – 700 054. ... Petitioners

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Vs.

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Kotak Mahindra Bank, Egmore, Chennai – 600 009. ... Respondent

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PRAYER: Criminal Original Petition is filed under Section 482 of

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Page 1 of 6

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https://www.mhc.tn.gov.in/judis

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Crl.O.P.No.15794 of 2024

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Cr.P.C., to set aside the order dated 29.04.2024 passed in Crl.M.P.No.12958/2024 in C.A.No.344 of 2024 against the judgment dated 27.03.2024 in C.C.No.1534 of 2018 on the file of the Metropolitan Magistrate, FTC-IV, George Town, Chennai and grant exemption from depositing 5% of the total compensation amount to suspend the sentence.

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For Petitioners : Mr.V.Santharam

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For Respondent : Ms.B.Narmada For Mr.M.Arunachalam

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O R D E R

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The Criminal Original Petition has been filed challenging the

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order dated 29.04.2024 passed by the learned Principal Sessions Judge, Chennai, in Crl.M.P.No.12958 of 2024 in C.A.No.344 of 2024, thereby imposing condition while suspending the sentence imposed by the learned Metropolitan Magistrate, FTC-IV, George Town, Chennai, in C.C.No.1534 of 2018 dated 27.03.2024.

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2 . The petitioners are the accused in the complaint lodged by the respondent for the offence punishable under Section 138 of Negotiable Instruments Act in C.C.No.1534 of 2018 on the file of the learned Metropolitan Magistrate, FTC-IV, George Town, Chennai. After full fledged trial, the trial Court convicted the petitioners and sentenced

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Page 2 of 6

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https://www.mhc.tn.gov.in/judis

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Crl.O.P.No.15794 of 2024

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them to undergo three months simple imprisonment and also awarded compensation to the tune of cheque amount viz., Rs.7,95,00,000/payable by first accused company and a sum of Rs.50,00,000/- payable by the second accused.

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3 . Aggrieved by the same, the petitioners filed appeal in C.A.No.344 of 2024 along with the application for suspending the sentence in Crl.M.P.No.12958 of 2024 before the learned Principal Sessions Judge, Chennai. The learned Sessions Judge, while suspending the sentence imposed condition that the petitioners shall deposit 5% of the compensation amount within a period of sixty days from the date of that order. Challenging the said order, the present petition has been filed.

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4 . The learned counsel appearing for the petitioner submitted

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that negotiations are going on between the petitioners and the respondent bank.

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5 . H eard the learned counsel appearing on either side and perused the materials placed before this Court.

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As per Section 148 of Negotiable Instruments Act, the

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Page 3 of 6

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https://www.mhc.tn.gov.in/judis

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Crl.O.P.No.15794 of 2024

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appellate Court can impose condition to deposit 20% of the compensation amount while suspending the sentence. However, the appellate Court directed the petitioners to deposit 5% of the compensation amount before the trial Court. That apart, if any settlement between the parties, they can very well approach the appellate Court in C.A.No.344 of 2024, to compound the offence.

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