Principal of Restitution over Retribution: Probation Granted in NI Act Conviction after Post-Conviction Deposit of Cheque Amount.

The applicants (accused) were convicted by the 11th Additional Chief Judicial Magistrate, Rajkot, under Section 138 of the Negotiable Instruments Act in three separate criminal cases (CC Nos. 1181, 1182, and 1183 of 2018)

The trial court sentenced them to one year of simple imprisonment and ordered compensation equivalent to the cheque amounts

The applicants appealed to the Sessions Court, which dismissed the appeals on 31.08.2023, upheld the conviction, and modified the compensation amounts to Rs. 3,50,000, Rs. 2,10,000, and Rs. 2,10,000 respectively

During the pendency of the proceedings, the applicants deposited the cheque amounts

1. Whether the court should exercise its revisional jurisdiction to interfere with the concurrent findings of conviction when the cheque amounts have been deposited

2. Whether the benefits of the Probation of Offenders Act, 1958, can be extended to an accused convicted under Section 138 of the NI Act after settlement/deposit of the disputed amount

Section 138 of the Negotiable Instruments (NI) Act, noting its quasi-criminal nature intended to ensure the credibility of cheques rather than seeking retribution

Scope of Revisional Jurisdiction under Sections 397 and 401 of the CrPC, which restricts re-analyzing evidence in the absence of perversity

Precedent of the Hon’ble Supreme Court in Sanjabij Tari v. Kishore S. Borcar (2025 INSC 1158) regarding the grant of probation in NI Act cases

Section 4 of the Probation of Offenders Act, 1958

The High Court found no perversity in the concurrent findings of the lower courts and declined to re-interpret the evidence regarding the conviction

The court observed that since the applicants had deposited the cheque amounts and settled the financial grievance, the primary objective of Section 138—compensatory justice—was addressed

Following the Supreme Court’s direction in Sanjabij Tari, the court reasoned that while maintaining the conviction, the punitive element (imprisonment) could be substituted with a rehabilitative measure (probation) given the nature of the offense and the post-conviction conduct of the applicants

The Revision Applications were disposed of by directing the release of the applicants on probation of good conduct under Section 4 of the Probation of Offenders Act for a period of one year

The applicants are required to execute a probation bond of Rs. 20,000 with one surety in each case before the trial court within 15 days and must maintain peace and appear for sentencing if called upon during the probation period