Court emphasizes proportionality in sentencing, increases compensation to Rs. 6,10,000
In a recent judgment, the Punjab and Haryana High Court upheld the conviction of Gulab Singh under Section 138 of the Negotiable Instruments Act, 1881, in a cheque bounce case. However, the court reduced his substantive imprisonment to the period already served, citing financial incapacity. The decision was delivered by Justice Anoop Chitkara on May 20, 2026.
Gulab Singh, who was initially sentenced to one year of simple imprisonment and ordered to pay Rs. 5,70,000 in compensation by the trial court, had his sentence affirmed by the sessions court. However, he filed a criminal revision petition before the High Court, pleading financial inability to pay the compensation and seeking a reduction in the sentence.
In a nuanced judgment, the High Court emphasized the principle of proportionate sentencing, underscoring the need for the duration of imprisonment for non-payment of fines or compensation to align with the unpaid amount. The court highlighted that the curtailment of liberty due to financial incapacity must be equitable and consistent with other similar cases, as mandated by Article 14 of the Indian Constitution.
Justice Chitkara noted that Gulab Singh had already spent three months and 11 days in custody. The court recalculated the compensation, enhancing it by Rs. 40,000 to a total of Rs. 6,10,000, in line with the financial circumstances and justice. The enhanced compensation, along with any accrued interest, is to be released to the complainant, Virender Chauhan.
The court ordered Gulab Singh's immediate release, provided he is not involved in any other pending cases. This judgment underscores the judiciary's commitment to fair and equitable justice, especially in cases involving financial discrepancies.
Bottom line:-
Proportionate sentencing emphasized for imprisonment due to non-payment of fine or compensation. Conviction under Section 138 of the Negotiable Instruments Act upheld, with substantive imprisonment reduced to the period already undergone and compensation amount enhanced.
Statutory provision(s): Section 138 of the Negotiable Instruments Act, 1881; Article 14 of the Constitution of India, 1950
Gulab Singh v. State of Haryana, (Punjab And Haryana) : Law Finder Doc id # 2903653
