The Supreme Court: To Suspend The Sentence A Condition To Deposit 50% Of Compensation Ordered Is Unjustified

Legal News by - AISHWARYA  (This News was written by her during her Internship)

In Nikhil vs State Of Maharashtra, the apex court of the country held that the condition to deposit 50% of compensation was directed under Section 357 of the Code Of Criminal Procedure which provides power to the victim to award compensation for the offense out of the sentence of fine imposed on the offender, empowering the court to award compensation to the victim at the time of passing the judgment of conviction. In this case, used by the accused to suspend the Sentence. He has misappropriated the Customer/Depositor amount in the bank.

The trial Court sentenced the accused with Rs.2.86 crores as compensation for suspending his sentence. The accused was sentenced to four years and six months of rigorous imprisonment for committing the Offence of Criminal Breach and Trust under Section 409 which talks about by any manner the person entrusted with the property in his capacity as a merchant, public servant, or banker commits criminal breach of trust is punishable with life imprisonment or extend to 10years or fine or with both and 201 which is about causing the disappearance of evidence of the offense or give false Information to protect the offender being described in Indian Penal Code.

The appellant filed a Criminal appeal for suspension of sentence but it was rejected by order on 3rd April 2024 to the High Court for allowing suspension of sentence, The High Court imposed a condition to deposit 50% as compensation amount which was directed by the trial court stand as Rs.1.43 crores.

Mr. Ishaan George, learned counsel for The Appellant accused and Mr. Aaditya Aniruddha Pande, learned Counsel for the State. The convict, in the end, moved to the Supreme Court against such condition imposed by the High Court, The bench comprising of Justice Pamidighantam Sri Narasimha and Pankaj Mithal gave their opinion on this case as taking into account the purpose and object of Section 357 of Criminal Procedure Code, reading with its enunciation Dilip S Dahanukar vs Mahindra Co. Ltd., 2007 where the direction of the High Court granting the Suspension of sentence by Imposing subject to the condition of depositing 50% of compensation is not justified. Disapproved by the High Court Condition Supreme Court set aside direction to pay 50% compensation and leave granted to the accused.

By critically examining the case it can be stated that payment of money for bail relief is wrong

because then every accused will ask for these reliefs which will hamper the legal system. And in this kind of heinous case, there is no guarantee of accused that he will not commit the crime again. In banks, there are other depositors also who suffer due to these frauds committed by such persons with criminal intent and it breaks their trust in the banking system which is most important for the economy of a country.

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