Cheque dishonour sentencing should include compensation to serve the statutory object and protect the complainant's recovery rights.

In cheque dishonour matters, sentencing should not be confined to imprisonment; the court should also consider compensation so the complainant receives the cheque amount within a reasonable time. The Bombay High Court noted that where dishonour under Section 138 of the Negotiable Instruments Act is established, the sentencing court ought to exercise discretion judiciously and consider compensation under Section 357 of the Code of Criminal Procedure to give effect to the statutory object. The conviction was maintained, but the sentence was modified to add a compensatory direction, showing that compensation can form an important part of effective sentencing in cheque dishonour cases.

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Issues: Whether, on conviction for dishonour of cheque, the sentencing order should be modified to include compensation to the complainant.

Analysis: The conviction for the offence under Section 138 of the Negotiable Instruments Act was maintained. The Court held that the object of the provision is not served merely by sending the accused to imprisonment, and that the discretion in sentencing must be exercised judiciously. It further held that the trial court ought to have considered compensation under Section 357 of the Code of Criminal Procedure, since the complainant had established dishonour of the cheque and was entitled to receive the cheque amount back within a reasonable time.

Conclusion: The sentence was modified only to the extent that the accused was directed to pay compensation of Rs. 80,000/- to the complainants within 15 days, failing which he would undergo one month's imprisonment. The conviction remained undisturbed.

Final Conclusion: The revision succeeded in part by adding a compensatory direction while leaving the conviction intact.

Ratio Decidendi: In a cheque dishonour conviction, the sentencing court should consider compensation under Section 357 of the Code of Criminal Procedure so that the complainant receives the cheque amount and the statutory object of Section 138 of the Negotiable Instruments Act is effectively served.

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