In a recent development, the High Court of Judicature at Bombay has canceled the bail and suspension of sentence granted to Satish P. Bhatt, the Chairman-cum-Managing Director of M/s. Astral Glass Private Limited, and Vishwanath Ramakrishna Nayak, the Vice-Chairman. The decision came in response to their persistent failure to fulfill financial obligations stemming from a conviction under Section 138 of the Negotiable Instruments Act, 1881.
The appellants, along with their company, were convicted by the Trial Court in 2011, and their appeals were dismissed by the Sessions Court in 2014. A settlement was reached on July 3, 2018, requiring them to pay Rs. 4,63,50,000 to the complainant-respondent. Despite an initial payment, the remaining amount was not paid as per the agreed schedule.
The High Court, in its order dated March 20, 2019, extended the payment deadline to April 20, 2019, warning that non-compliance would result in the automatic withdrawal of bail and suspension of sentence. Subsequently, the appellants failed to meet the extended deadline, leading to the cancellation of their bail on July 23, 2019.
While the appellant claims to have paid his share, the complainant insists on an outstanding amount of Rs. 83,10,000. The intervenor, Nayak, asserts a 60:40 partnership and argues that he has paid his due share, leaving a shortfall for the appellant.
Despite a stay of arrest provided by the Supreme Court, the appellants have not served their sentence, and the complainant is yet to receive the compensation. The appeal has been dismissed, and the appellants are directed to surrender within four weeks. The High Court is tasked with deciding pending revisions and ensuring full compliance with the settlement agreement. Additionally, the appellants are required to pay Rs. 5 lakhs in costs to the complainant, separate from the compensation awarded.
CASE NAME- Criminal Appeal No. of 2024 (@ Special Leave Petition (CRL.) No.7433 of 2019) – Satish P. Bhatt vs. The State of Maharashtra & Anr.
Arushi Mengi, 2nd year B.A.L.L.B student at The Law School, University of Jammu, an intern under Legal Vidhiya.
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