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Issues: Whether the State Government or the Central Government was the appropriate Government to consider remission of sentence under section 432 of the Code of Criminal Procedure, 1973 in the case of a conviction under section 138 of the Negotiable Instruments Act, 1881.
Analysis: Section 432(7) of the Code makes the Central Government the appropriate Government where the sentence is for an offence against a law relating to a matter to which the executive power of the Union extends, and the State Government only in other cases. Under Article 73 of the Constitution of India, the executive power of the Union extends to matters on which Parliament has power to make laws. Article 246 read with Entry 46 of List I places cheques within the exclusive legislative field of Parliament. The offence under section 138 of the Negotiable Instruments Act, 1881 is directly concerned with dishonour of cheque and therefore relates to a matter within the Union's executive sphere.
Conclusion: The Central Government, and not the State Government, was the appropriate Government competent to consider remission under section 432 of the Code of Criminal Procedure, 1973.
Final Conclusion: The writ appeal succeeded and the direction issued by the Single Judge was set aside.
Ratio Decidendi: Where the offence of conviction arises under a Parliamentary law relating to cheques, the power of remission under section 432 of the Code of Criminal Procedure, 1973 vests in the Central Government because the matter falls within the executive power of the Union.