M/s Cranex Ltd. & Anr. Vs. M/s Nagarjuna Finance Ltd. & Anr.
EmailAppeal: Criminal Appeal No. 789 of 2000
(Arising out of SLP (Crl.) No. 2224 of 2000)
(From the Judgment and Order dated 21.3.2000 of the Andhra Pra-desh High Court in Crl. R.C. No. 91 of 2000)
(Arising out of SLP (Crl.) No. 2224 of 2000)
(From the Judgment and Order dated 21.3.2000 of the Andhra Pra-desh High Court in Crl. R.C. No. 91 of 2000)
Petitioner: M/s Cranex Ltd. & Anr.
Respondent: M/s Nagarjuna Finance Ltd. & Anr.
Apeal: Criminal Appeal No. 789 of 2000
(Arising out of SLP (Crl.) No. 2224 of 2000)
(From the Judgment and Order dated 21.3.2000 of the Andhra Pra-desh High Court in Crl. R.C. No. 91 of 2000)
(Arising out of SLP (Crl.) No. 2224 of 2000)
(From the Judgment and Order dated 21.3.2000 of the Andhra Pra-desh High Court in Crl. R.C. No. 91 of 2000)
Judges: M. JAGANNADHA RAO & M.B. SHAH, JJ.
Date of Judgment: Sep 14, 2000
Appearances:
Mr. R. Venugopal Reddy, Senior Advocate, Mrs. S. Usha Reddy, Advocate with him for the Appellants.
Mr. A. Subba Rao, Advocate for the Respondents.
Head Note:
CRIMINAL LAW
Negotiable Instruments Act, 1881
Section 138 – Cheque – Dishonour – Criminal liability – Convic-tion – Powers of Appellate Court – Accused appellant convicted and sentenced for the offence under Section 138 – Appeal against conviction – During pendency of appeal interlocutory applications filed by appellants in trial court – Applications, however, dis-missed and revision against such order also dismissed by High Court – In the meantime settlement between parties regarding money claim whereunder accused appellant depositing the money in the court – Appeal against dismissal of revision. Held, Appellate Court should consider the subsequent events like the payment of the money under settlement and pass appropriate orders. High Court’s orders on interlocutory applications set aside and matter remanded for fresh disposal.
Held:
In the light of the subsequent developments in the case, we are of the view that the order passed in the interlocutory appli-cation be set aside and the matter be remitted to the Appellate Court where the appeal is pending. We order accordingly. The Appellate Court will consider the subsequent events, namely, of the appellant having paid a sum of Rs. 5,96,688/- under a settle-ment to the 1st respondent and will dispose of the appeal in accordance with law. On merits, it will be open even to set aside the conviction in accordance with law. Otherwise, it has power to convict or direct sentence of imprisonment or fine. The Appellate Court can therefore, take the subsequent events into account and pass such order as it may deem fit in the appeal. Under Section 138 the Court can, if it is inclined to convict, pass an order of imprisonment or even fine. (Paras 5, 6)
JUDGEMENT:
ORDER
1. Leave granted.
2. The case involves a settlement of the money claim during the pendency of a criminal appeal arising out of proceedings under Section 138 of the Negotiable Instruments Act. The main appeal, namely, Criminal Appeal No. 5/99, against the conviction, is pending before the VIth Additional Metropolitan Sessions Judge, Secunderabad in the matter arising under Section 138 of the Negotiable Instruments Act. That is an appeal against the order dated 8.2.99 of the XVth Metropolitan Magistrate, Hyderabad, sentencing the appellant no. 2, representing the firm, to undergo rigorous imprisonment for 6 months and further to pay a fine of Rs. 10,000/- or in default, to undergo simple imprisonment for a further period of 3 months. There is also a direction against the 2nd appellant representing the 1st appellant-Company, to pay a fine of Rs. 10,000/- or in default to undergo simple imprisonment for 3 months. The appeal against the conviction and sentence is pending as aforesaid, before the VIth Additional Metropolitan Sessions Judge, Secunderabad.
3. At that stage, it appears that some interlocutory applications were filed by the appellants in the trial court and the said applications were dismissed. Against the said order, a revision case no. 91/2000 was filed in the High Court and it was also dismissed. This appeal has been preferred against the said order passed by the High Court in the interlocutory proceedings.
4. During the pendency of the case, there appears to be a settle-ment of the money-dispute between the parties. On 24.8.2000 this Court passed an order as follows :
“Learned Counsel for the petitioners states that the petitioners would deposit the cheque amount (Rs. 5,96,688/-) which was disho-noured within three weeks from today before the XV Metropolitan Magistrate, Hyderabad. In this view of the matter, stand over for three weeks. Application for substituting the name of Mr. S.C. Agarwal as Managing Director of the petitioner no. 1’s firm in place of Mr. Piyush Agrawal, Managing Director is allowed”.
It appears, subsequent to the said order, the appellant has deposited a sum of Rs. 5,96,688/- in the Court of the XV Metro-politan Magistrate, Hyderabad. A Certificate to that effect issued by the said Court has been filed by the Counsel for the petitioners, in this Court.
5. In the light of the subsequent developments in the case, we are of the view that the order passed in the interlocutory appli-cation, be set aside and the matter be remitted to the Appellate Court where the appeal is pending. We order accordingly.
6. The Appellate Court will consider the subsequent events, namely, of the appellant having paid a sum of Rs. 5,96,688/- under a settlement to the 1st respondent and will dispose of the appeal in accordance with law. On merits, it will be open even to set aside the conviction in accordance with law. Otherwise, it has power to convict or direct sentence of imprisonment or fine. The Appellate Court can, therefore, take the subsequent events into account and pass such order as it may deem fit in the appeal. Under Section 138 the Court can, if it is inclined to convict, pass an order of imprisonment or even fine.
7. The impugned order passed by the High Court in the present interlocutory proceedings is set aside and the matter is remanded to the Appellate Court, namely the VIth Additional Metropolitan Sessions Judge, Secunderabad, as stated above.
8. We also record the statement of the learned Counsel for the respondent that if the amount deposited, is permitted to be with-drawn by the first respondent, then the 1st respondent will not press before the Appellate Court for a conviction or for a sen-tence be it for imprisonment or fine. In such circumstances, the Appellate Court will consider whether the conviction is to be maintained or an order of imposition of fine is to be passed, in the light of the stand taken by the Counsel for the 1st respond-ent.
9. We direct the Court in which the deposit has been made, to allow the 1st respondent to withdraw the amount accordingly. With the above directions the appeal is disposed of.
1. Leave granted.
2. The case involves a settlement of the money claim during the pendency of a criminal appeal arising out of proceedings under Section 138 of the Negotiable Instruments Act. The main appeal, namely, Criminal Appeal No. 5/99, against the conviction, is pending before the VIth Additional Metropolitan Sessions Judge, Secunderabad in the matter arising under Section 138 of the Negotiable Instruments Act. That is an appeal against the order dated 8.2.99 of the XVth Metropolitan Magistrate, Hyderabad, sentencing the appellant no. 2, representing the firm, to undergo rigorous imprisonment for 6 months and further to pay a fine of Rs. 10,000/- or in default, to undergo simple imprisonment for a further period of 3 months. There is also a direction against the 2nd appellant representing the 1st appellant-Company, to pay a fine of Rs. 10,000/- or in default to undergo simple imprisonment for 3 months. The appeal against the conviction and sentence is pending as aforesaid, before the VIth Additional Metropolitan Sessions Judge, Secunderabad.
3. At that stage, it appears that some interlocutory applications were filed by the appellants in the trial court and the said applications were dismissed. Against the said order, a revision case no. 91/2000 was filed in the High Court and it was also dismissed. This appeal has been preferred against the said order passed by the High Court in the interlocutory proceedings.
4. During the pendency of the case, there appears to be a settle-ment of the money-dispute between the parties. On 24.8.2000 this Court passed an order as follows :
“Learned Counsel for the petitioners states that the petitioners would deposit the cheque amount (Rs. 5,96,688/-) which was disho-noured within three weeks from today before the XV Metropolitan Magistrate, Hyderabad. In this view of the matter, stand over for three weeks. Application for substituting the name of Mr. S.C. Agarwal as Managing Director of the petitioner no. 1’s firm in place of Mr. Piyush Agrawal, Managing Director is allowed”.
It appears, subsequent to the said order, the appellant has deposited a sum of Rs. 5,96,688/- in the Court of the XV Metro-politan Magistrate, Hyderabad. A Certificate to that effect issued by the said Court has been filed by the Counsel for the petitioners, in this Court.
5. In the light of the subsequent developments in the case, we are of the view that the order passed in the interlocutory appli-cation, be set aside and the matter be remitted to the Appellate Court where the appeal is pending. We order accordingly.
6. The Appellate Court will consider the subsequent events, namely, of the appellant having paid a sum of Rs. 5,96,688/- under a settlement to the 1st respondent and will dispose of the appeal in accordance with law. On merits, it will be open even to set aside the conviction in accordance with law. Otherwise, it has power to convict or direct sentence of imprisonment or fine. The Appellate Court can, therefore, take the subsequent events into account and pass such order as it may deem fit in the appeal. Under Section 138 the Court can, if it is inclined to convict, pass an order of imprisonment or even fine.
7. The impugned order passed by the High Court in the present interlocutory proceedings is set aside and the matter is remanded to the Appellate Court, namely the VIth Additional Metropolitan Sessions Judge, Secunderabad, as stated above.
8. We also record the statement of the learned Counsel for the respondent that if the amount deposited, is permitted to be with-drawn by the first respondent, then the 1st respondent will not press before the Appellate Court for a conviction or for a sen-tence be it for imprisonment or fine. In such circumstances, the Appellate Court will consider whether the conviction is to be maintained or an order of imposition of fine is to be passed, in the light of the stand taken by the Counsel for the 1st respond-ent.
9. We direct the Court in which the deposit has been made, to allow the 1st respondent to withdraw the amount accordingly. With the above directions the appeal is disposed of.
