Section 138 NI Act sentencing discretion: conviction sustained, custodial sentence replaced with fine in revision.

Section 138 of the Negotiable Instruments Act permits imprisonment, fine, or both, and does not make custodial punishment mandatory in every conviction. The sentencing court retains discretion to tailor punishment to the facts and circumstances, and in revision the sentence may be modified where the ends of justice require it while the conviction remains undisturbed if guilt is not challenged successfully. On that basis, the conviction was maintained, the custodial sentence was set aside, and fine was substituted as the operative punishment, with the original fine kept intact and payable as directed.

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Issues: Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881 should be maintained and whether the sentence of imprisonment required modification in revision.

Analysis: Section 138 of the Negotiable Instruments Act, 1881 permits punishment with imprisonment up to two years, or with fine up to twice the cheque amount, or with both. The provision confers discretion on the criminal court to tailor the sentence according to the facts and circumstances of the case, and imprisonment is not mandatory in every conviction under the section. In revisional jurisdiction, the sentence can be interfered with where the ends of justice require modification, while the conviction may still stand if the finding of guilt is not disturbed. The amount directed to be paid as fine may also be sustained and adjusted as ordered.

Conclusion: The conviction was maintained, but the custodial sentence was set aside and substituted by enhanced fine, with the original fine amount kept intact and payable as directed.

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