In a recent landmark judgment of January 3, 2024, the Supreme Court of India upheld the decision of the High Court of Bombay to cancel the suspension of sentence and bail for Satish P. Bhatt and Vishwanath Ramakrishna Nayak, former directors of Astral Glass Pvt. Ltd. The case, revolving around offenses under the Negotiable Instruments Act, has shed light on the complex interplay of financial responsibility and legal compliance.
The legal saga began on August 26, 2011, when Bhatt and Nayak were convicted for offenses under Section 138 of the Negotiable Instruments Act, 1881, by the Trial Court. This led to a cumulative sentence of ten months and a total liability of Rs. 5 crores. The Sessions Court subsequently upheld the conviction, triggering a protracted legal battle that eventually reached the High Court of Bombay.
In an unexpected twist, the High Court initially suspended the sentence and granted bail to the convicts in 2018 based on an undertaking submitted on July 3, 2018. The undertaking included a commitment to pay Rs. 46.35 crores to the complainant, with Rs. 7.35 crores already paid. The remaining amount was to be paid in installments, each with specific deadlines. However, on July 23, 2019, the High Court revoked the suspension and bail due to the appellants' failure to comply with the terms of the undertaking and subsequent orders.
The Supreme Court, in its recent judgment delivered by Justices Vikram Nath and Rajesh Bindal, emphasized the significance of honoring financial commitments and respecting judicial orders. The Court upheld the High Court's decision, citing the persistent failure of the appellants to fulfill their financial obligations as agreed in the settlement.
The judgment also included specific directives – the dismissal of the appeal with costs, quantified at Rs. 5 lakhs, to be paid to the complainant, in addition to the compensation awarded. The Supreme Court further mandated the appellants to surrender within four weeks to undergo their sentence.
Case: SATISH P. BHATT vs. THE STATE OF MAHARASHTRA & ANR,
CRIMINAL APPEAL NO. OF 2024 (@ SPECIAL LEAVE PETITION (CRL.) NO.7433 OF 2019).
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