Compensation under criminal procedure law cannot be directed to the Government in a private cheque dishonour complaint.

Section 357(3) of the Code of Criminal Procedure permits compensation only to a person who has suffered loss or injury from the offence. In a private complaint under Section 138 of the Negotiable Instruments Act, where the State did not prosecute the case or incur prosecution expense, the Government cannot be treated as the victim entitled to compensation for cheque dishonour. The provision is intended to compensate the real victim, and general State expenditure on justice administration does not satisfy that requirement. A direction to pay compensation to the Government under Section 357(3) was therefore unsustainable and was set aside.

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Issues: Whether compensation under Section 357(3) of the Code of Criminal Procedure, 1973 could be directed to be paid to the Government in a prosecution under Section 138 of the Negotiable Instruments Act, 1881 arising from a private complaint where the State had no role in the prosecution.

Analysis: Section 357(3) authorises compensation only to a person who has suffered loss or injury by reason of the act for which the accused is sentenced. In a private complaint under Section 138 of the Negotiable Instruments Act, 1881, where both sides were represented by private counsel and the State neither prosecuted the case nor incurred any prosecution expense, the Government cannot be treated as a person who suffered loss or injury from the dishonour of the cheque. The provision is intended to compensate the real victim of the offence, and the expenditure of the State on general administration of justice does not bring it within Section 357(3).

Conclusion: The direction to pay compensation to the Government under Section 357(3) of the Code of Criminal Procedure, 1973 was unsustainable and was set aside. The petitioner succeeded to that extent.

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