Holding

While awarding compensation under Section 357(3) CrPC, the court may impose a default sentence of imprisonment for non‑payment, as read with Section 431 CrPC and Section 64 IPC.

Summary

Vijayan was convicted under Section 138 of the Negotiable Instruments Act and sentenced to one year imprisonment with a direction to pay Rs.8.25 lakh as compensation under Section 357(3) of the Code of Criminal Procedure (CrPC), with a default term of six months’ imprisonment for non‑payment. The Kerala High Court upheld the default imprisonment clause. Vijayan filed a Special Leave Petition before the Supreme Court challenging the legality of imposing a default sentence when compensation is awarded under Section 357(3). The Court examined whether Sections 357(3) and 431 of the CrPC, read with Section 64 of the Indian Penal Code, empower a court to impose such a default sentence. Relying on earlier decisions in Hari Singh v Sukhbir Singh and Sugnathi Suresh Kumar, the Court held that the default imprisonment is permissible and that the Kerala High Court’s reliance on Rajendran v Jose was erroneous. Consequently, the petition was dismissed and the default sentence upheld, with a three‑month extension for payment of the compensation.

Issues considered

Whether a default sentence of imprisonment can be imposed when compensation is awarded under sub‑section (3) of Section 357 of the Code of Criminal Procedure, 1973

Legislation cited

Code of Criminal Procedure, 1973s. 357(3), s. 421, s. 431
Indian Penal Code, 1860s. 64

Subjects

compensationdefault sentenceSection 357(3) CrPCSection 431 CrPCSection 64 IPCcriminal procedurenon‑payment of compensationSupreme Court

Judgment

[2009] 7 S.C.R. 463

\
VIJAYAN A
v.
SADANANDAN K. & ANR.
Special Leave Petition (Crl.) No. 3220 of 2008

MAY 5, 2009
B
(ALTAMAS KABIR AND CYRIAC JOSEPH, JJ.)

... CODE OF CRIMINAL PROCEDURE, 1973:
ss. 357(3)and 431 - Order to pay compensation - Power
of court to pass default sentence - Held: Provisions of c
ss.357(3) and 431 CrPC. rlw s.64 IPC, empower the court, while
making an order for payment of compensation, a/so to include
a default sentence in case of non-payment of the same- Penal
Code, 1860 - s. 64.
Constitution oflndia, 1950-Article 141- Law laid down 0
"' by Supreme Court - Binding effect of - HELD: When decision
of the Supreme Court was holding the field, High Court erred
in relying on a decision of another High Court.
In the instant special leave petition, filed by the
accused, the question for consideration before the Court E
was: whether a default sentence could be imposed when
compensatibn was awarded under sub-s. (3) of s.357 of
the Code of Criminal Procedure, 1973.
Dismissing the petition, the Court
F
HELD: 1.1 The power to impose a default sentence
in case of non-payment of compensation uls 357(3)
Cr.P.C. has been duly recognized by this Court. While
awarding compensation uls 357(3), the court is within its
jurisdiction to add a default sentence of imprisonment. G
The provision for grant of compensation u/s 357(3), and
\'
the recovery thereof makes it necessary for imposition of
a default sentence as has been held by this Court in Hari
Singh'* and Sugnathi Suresh Kumar . The law has been
463 H
464 SUPREME COURT REPORTS [2009] 7 S.C.R

A correctly stated in the said two decisions. When the
,
decision of this Court in Hari Singh was holding the field,
the Single Judge of the High Court wrongly relied on the
decision of the Kerala High Court in Rajendran's case**.
[para 19 and 23] [472-F-G; 474-F-G]
B *Hari Singh v Sukhbir Singh(1998) 4 SCC 551; Sugnathi
Suresh Kumar v. Jaagdeeshan (2002) 2 SCC 420; Shanti/a/
v. State of Madhya Pradesh (2007) 11 SCC 243 and Ku/dip
•
Kaur v. Surinder Singh (1989) 1 SCC 405 - relied on.

c **Rajendran V Jose (2002) 1 Crimes 653 - overruled.
Dilip S. Oahanukar V Kotak Mahindra Co.Ltd. & Anr.
(2007) 6 sec 528 - held inapplicable.

1.2 Section 357 Cr.P.C. bears the heading "Order to
D
pay compensation". It includes in sub-s. (1) the power of
the court to utilize a portion of the fine imposed for the
..
purpose of compensating any person for any loss or
injury caused by the offence. In addition, sub-s.(3)
provides that when a sentence is imposed by the court,
of which fine does not form a part, the court may, while
E passing judgment, order the accused to pay by way of
compensation such amount as may be specified in the
order to the person who suffers any loss or injury by
reason of the act for which the accused has been so
sentenced. It is true that the said provision does not
F include the power to impose a default sentence, but read
with s. 431 Cr.P.C. the said difficulty can be overcome by
the Magistrate imposing the sentence. Section 431 makes
it clear that any money other than a fine payable on
account of an order passed under the Code shall be
G recoverable as if it were a fine. Section 64 IPC lays down
that while imposing a sentence of fine, the court would J
be competent to include a default sentence to ensure
payment of the same. [para 20-21] [473-8-E; 474-A]
1.3 Thus, the provisions of ss. 357(3) and 431 Cr.P.C;,
H
VIJAYAN V. SADANANDAN K. & ANR. 465

when read with s.64 IPC, empower the court, while making A
an order for payment of compensation, also to include a
default sentence in case of non-payment of the same. If
recourse can only be had to s.421 Cr.P.C. for enforcing
the same, the very object of slib-s.(3) of s.357 would be
frustrated and the relief contemplated therein would be B
rendered somewhat illusory. [para 22] [474-D-F]
. Case Law Reference
(2002) 1 Crimes 653 overruled para 8
(2001) 6 sec 528 held inapplicable para 6 c
(1998) 4 sec 551 relied on para 10
(2002) 2 sec 420 relied· on para 10
(2007) 11 sec 243 relied on para 13 D
~
(1989) 1 sec 405 relied on para 13
CIMINAL APPELLATE JURISDICTION : Special Leave
Petition (Crl.) No. 3220 of 2008
From the Judgement and Order dated 28.05.2007 of the E
Hon'ble High Court of Kerala at Ernakulam in Revision Petition
No. 1836 of 2007.
Dr. Kailasahnatha Pillay, R.K. Pandey, Vijay Kumar, for the
Appellant.
F
Raghenth Basant, Liz Mathew, P.V. Dinesh, for the
Respondent.
The Judgement of the Court was delivered by
ALTAMAS KABIR, J. G
• 1. In this Special Leave Petition we are called upon to
·, consider whether a default sentence can be imposed when
compensation is awarded under Sub-Section (3) of Section 357
of the Code of Criminal Procedure.
H
466 SUPREME COURT REPORTS [2009] 7 S.C.R.

A 2. In the instant case, the petitioner stood convicted by the
Judicial Magistrate, First Class, Court-II, Pathanamthitta, of an
offence under Section 138 of the Negotiable Instruments Act,
1881, and sentenced to undergo simple imprisonment for one
year and to pay a sum of Rs.8,25,000/- as compensation to the
B complainanURespondent No.1 herein under Section 357(3) of
the Code of Criminal Procedure, (Cr.P.C.in short) and in default
to undergo simple imprisonment for a further period of six
months. On appeal (Criminal Appeal no.41/2006), the •
Additional District and Sessions Judge by her order dated 27th
c March, 2007 confirmed the judgment of conviction and sentence
passed by the learned Magistrate. In revision, being Criminal
Revision Petition No.1836 of 2007-D, the Kerala High Court by
1
its judgment dated 28 h May, 2007, while upholding the
conviction, modified the sentence from imprisonment for a year
D to imprisonment till the rising of the Court and to pay a
compensation of Rs.8,25,000/- to the complainant under
Section 357(3) Cr.P.C. and in default to undergo Simple
Imprisonment for six months.
3. It is the said order of the Kerala High, which has been
E impugned in the instant Special Leave Petition.
4. Dr. K.P. Kailasanatha Pillay, learned Advocate for the
petitioner, questioned the judgment of the High Court mainly on
the ground that the High Court had erred in law in confirming the
default clause made by the Trial Court while directing
F compensation to be paid under Section 357(3) Cr.P.C.
According to Dr. Pi Ilay, though Section 357(1) Cr.P.C., inter alia,
provides for the disbursement of fine imposed by way of
compensation, Sub-Section (3), merely empowers the Court
when it imposes a sentence of which fine does not form a part,
G to order the accused person to pay, by way of compensation,
such amount as may be specified in the order, to the person
who has suffered any loss or injury by reason of the act for which
the accused person has been so sentenced. Dr. Pillay submitted
that in the absence of any specific provision with regard to
H default in payment of compensation which was distinctly different
VIJAYAN V SAOi\N;-\NDAN K. & ANR 467
[ALTAMAS :(/i..BIR, J.]

from imposition of fine by way of a penalty, the High court had A
wrongly confirmed the default sentence imposed by the learned
Magistrate and upheld by the learned Sessions Judge.
5. Dr. Pillay submitted that according to the scheme of the
Criminal Procedure Code, if any amount is to be recovered on
account of default in payment of fine, it would have to be done in 8
accordance with the provisions of Section 421 Cr.P.C. which
provides for issue of warrant for the levy of the amount by
attac~ment and sale of any movable property belonging to the
offender and in the alternative, by issuance of warrant to the
Collector of the district, authorizing him to realize the amount as C
arrears of land revenue from the movable or immovable property
or both, of the defaulter. Dr. Pillay also urged that the provisions
of Section 431, which is another mode for recovery of amounts
payable as fine, does not, however, cover cases involving the
recovery of compensation payable under Section 357(3) and D
therefore, the only mode available to the Court to recover any
defaulted amount by way of compensation is to take recourse
to the provisions of Section 421 Cr.P.C.
6. In support of his submissions, Dr. Pillay referred to the
decision of this Court in Dilip S. Dahanukar v Kotak Mahindra E
Co. Ltd. & Anr. [(2007) 6 SCC 528], wherein, while considering
the difference between the provisions of Section 357(1)(b) and
Section 357(3) Cr.P.C., i.e., the difference between "fine" and
"compensation" this Court observed that the distinction between
Sub-Sections (1) and (3) of Section 357 is apparent as Sub- F
Section (1) provides for application of an amount of fine towards
the purposes indicated while imposing a senten'ce of which fine
forms a part, whereas Sub-Section (3) is applicable in a situation
where the Court imposes a sentence of which fine does not
form a part of the sentence. This Court went on to observe that G
when fine is not imposed, compensation ca·n be directed to be
paid for loss or injury caused to the complainant by reason of
commission of offence and while Sub-Section (1) of Section
357 provides for application of the amount of fine. Sub-Section
(3) of Section 357 seeks to ach7eve the same purpose. H
468 SUPREME COURT REPORTS (2009] 7 S.C.R.

A 7. In this regard, Dr. Pillay also referred to and relied upon
a recent decision of this Court in Ettappadan Ahammedkutty

s
@ Kunhappu v E.P Abdullakoya @ Kunhi Bappu & Anr. in
Criminal Appeal No.1013 of 2007, where the same question
as raised in this Special Leave Petition fell for consideration
and the said appeal was disposed of by the following order:
-
"Compensation can be directed to be paid both in terms
of sub-section (1) of Section 357 of the Code of Criminal
Procedure as also sub-section (3) thereof. However, while
exercising jurisdiction under sub-section (3)· of Section
c 357, no direction can be issued that in default to pay the
amount of compensation, the accused shall suffer simple
imprisonment. Such an order could have been passed
only in terms of sub-section (1) of Section 357. If the
compensation directed to be paid by the Court in exercise
D of its jurisdiction under sub-section (3) of Section 357
Cr.P.C. is not deposited, the same can be realised as fine
in terms of Section 421 of the Code. We are, therefore, of
the opinion that that part of the impugned order whereby
and whereunder the appellant has been directed to
E undergo imprisonment for a period of one month, in the
event of default to pay compensation under sub-section
(3) of Section 357, is set aside. Rest of the order of the
High Court is upheld."
8. Dr. Pillay also referred to and relied on a Single Bench
F decision of the Kerala High Court in Rajendran ·v Jose [2002
(1) Crimes 653], where it was held that in order to recover
compensation awarded if it remained unpaid, the Trial
Magistrate could take steps under Section 421 or under Section
431 Cr. P.C. to recover the compensation, but the order directing
G the petitioner to undergo imprisonment in case of default in
payment of compensation was unsustainable.
9. Dr. Pillay urged that in view of the Jaw as laid down by
this Court in the case of Ettappadan Ahammedkutty (supra),
the High Court was clearly wr.ong in upholding the default
H
VIJAYAN V SADANANDAN K. & ANR 469
[ALTAMAS KABIR, J.]

sentence in case of non-payment of the compensation amount A
directed to be paid.
10. On behalf of the Respondent No.I, it was submitted by
Mr. Raghenth Basant, learned Advocate, that the judgment of
the High Court impugned in this Petition did not warrant any
interference since the question involved had been settled by B
this Court as early as in 1998 in the case of Hari Singh v Sukhbir
1
Singh [(1998) 4 SCC 551], wherein it was, inter alia, held that
since the imposition of compensation under Section 357(3)
Cr.P.C. was on account of social concern, the Court could
enforce the same by imposing sentence in default, particularly C
when no mode had been prescribed in the Code for recovery of
sums awarded as compensation in the event the same remained
unpaid. Mr. Basant also referred to the decision of this Court in
Sugnathi Suresh Kumar v Jagdeeshan [(2002) 2 SCC 420],
where the aforesaid views were reiterated and it was stated in
0
paragraph 11 of the said judgment as follows:-
"11. When this Court pronounced in Hari Singh v. Sukhbir
Singh (supra) that a Court may enforce an order to pay
compensation "by imposing a sentence in default" it is
open to all Courts in India to follow the said course. The E
said legal position would continue to hold good until it is
overruled by a larger Bench of this Court. Hence learned
Single Judge of High Court of Kerala has committed an
impropriety by expressing that the said legal direction of
this Court should not be followed by the subordinate Courts F
in Kerala. We express our disapproval of the course
adopted by the said Judge in Rajendran v. Jose 2001 (3)
Kerala Law Times 431. It is unfortunate that when the
Sessions Judge has correctly done a course in accordance
with the discipline the Single Judge of the High Court has
incorrectly reversed it." G
11. It was also urged that the decision in Dilip S.
Dahanukar's case (supra), referred to on behalf of the petitioner,
had no application to the issues involved in the present case
since in the said case the issue was whether Sub-Section (2) H
470 SUPRC:ME COURT REPORTS [2009) 7 S.C.R.

A of Section 357 could be applied in cases where compensation
.
is awarded under Sub-Section (3) thereof and it was urged that
the provisions of Sub-Section (2) would be applicable even in
cases where compensation is awarded under Section 357(3).
It was submitted that the said decision was not an authority for
B the proposition that default sentence could be imposed where
compensation is awarded under Section 357(3) Cr.P.C.

12. As far as two other decisions in Ettappadan
Ahamedkutty's case (supra) and Ba/raj's case (supra), relied
.
on by learned counsel for the Petitioner, the same did not also
c deal with the question as to whether a default sentence can be
imposed when compensation is awarded under Section 357(3)
Cr.P.C., which is the focal question as far as this case is
concerned.
13. Mr. Basant submitted that Section 431 Cr.P.C. provides
D that any money (other than a fine) payable by virtue of any order
made under the Code and the method of recovery of which is
not otherwise expressly provided for, shall be recoverable as if
it were a fine. Mr. Basant submitted that in that view of the matter,
compensation awarded under Section 357(3) Cr.P.C. could also
E be recovered under Section 431 Cr.P.C. read with Section 421
Cr.P.C., which provides the methods for recovery of fine imposed
by the Court from the accused. In this connection, reference was
also made to Sections 64 to 70 of the Indian Penal Code (!PC),
which empower the Court to impose a default sentence in case
of non-payment of fine. It was submitted that default sentence is
F
not a substantive sentence under the !PC and it comes to an
end the moment fine is paid by the accused. It was submitted
that Section 53 IPC deals with various punishments that can be
imposed on the accused, but default sentence is not one of the
sentences mentioned in Section 53. Mr. Basant added that
G Section 30 Cr.P.C. also recognizes the power of the Court to
impose a default sentence on non-payment of fine. Referring to
the decision of this Court in Shanti/al v State of Madhya
Pradesh [(2007) 11 SCC 243], Mr. Basant submitted that it had
been held in the said case that a default sentence is not a
H sentence as such, but a penalty which a person incurs on non-
VIJAYAN I/ SADANANDAN K. & ANR 471
[ALTAMAS KABIR, J]

1 payment of fine. Special reference was made to paragraph 31 A
of the judgment which reads as follows :-

"31. The next submission of the learned counsel for the
appellant, however, has substance. The term of
imprisonment in default of payment of fine is not a
sentence. It is a penalty which a person incurs on account B
of non-payment of fine. The sentence is something which
an offender must undergo unless it is set aside or remitted
in part or in whole either in appeal or in revision or in other
appropriate judicial proceedings or 'otherwise'. A terms
of imprisonment ordered in default of payment of fine c
stands on a different footing."

The same view was expressed earlier by this Court in
Ku/dip Kaur v Surinder Singh [(1989) 1 SCC 405], where it
was held that a default sentence is a mode of enforcing recovery
D
of amount imposed by way of compensation .
.~
14. It was submitted that if default sentence is taken to be
a mode of recovery, then Sections 64 to 70 !PC would be
applicable even in cases where compensation is awarded to
the victim under Section 357(3) Cr.P.C. It was further submitted E
that while Section 431 states that an amount other than a fine is
recoverable as if it were a fine, a fine could also be recoverable
either under Section 421 Cr.P.C. by attachment of movable and
immovable property or under Sections 64 to 70 !PC and Section
30 Cr.P.C. It was submitted that the said modes of enforcement F
were also available in respect of compensation directed to be
paid under Section 357(3) Cr.P.C. in the light of the provisions
of Section 431 thereof.

15. Mr. Basant concluded on the note that since the powers
of the Magistrate were restricted to awarding a maximum fine G
of Rs.5,000/-, which was subsequently enhanced to Rs.10,000/
~
- in 2005, the maximum fine that can be imposed by a
Magistrate is only Rs.10,000/-. However, in view of the provisions
for awarding compensation under Section 357(3) Cr.P.C., where
the power to award compensation is unlimited, the Magistrate H
472 SUPREME COURT REPORTS [2009] 7 S.C.R.

A can take recourse to the provisions of Section 357(3) Cr.P.C.
to meet a particular situation to ensure that justice is done to
the parties.
16. It was submitted that in view of what has been stated
hereinbefore, in appropriate cases the Courts are competent
B to impose a default sentence where compensation is awarded
under Section 357(3) Cr.P.C.
17. We have carefully considered the submissions made l

on behalf of the respective parties. Since a decision on the
question raised in this petition is still in a nebulous state, there
c appear to be two views as to whether a default sentence on
imprisonment can be imposed in cases where compensation
is awarded to the complainant under Section 357(3) Cr.P.C. As
pointed out by Mr. Basant in Dilip S. Dahanukar's case (supra),
the distinction between a fine and compensation as understood
D under Section 357(1)(b) and Section 357(3) Cr.P.C. had been
explained, but the question as to whether a default sentence
clause could be made in respect of compensation payable
under Section 357(3) Cr.P.C, which is central to the decision in
this case, had not been considered.
E 18. In the decision in Rajendran's case (supra), the learned
Single Judge of the Kerala High Court had held that in order to
recover compensation which remains unpaid, the Trial
Magistrate could take steps under Section 421 or Section 431
Cr.P.C. to recover the same, though ultimately it was held that
•
F imprisonment in case of default of such payment was not
sustainable.
19. In our view, the provision for grant of compensation
under Section 357(3) Cr.P.C. and the recovery thereof makes it
necessary for the imposition of a default sentence as was held
G by this Court firstly in Hari Singh's case (supra) and thereafter
in Sugnathi Suresh Kumar's case (supra). In our view, the law
has been correctly stated in the said two decisions. As we have
mentioned hereinbefore, when the decision of this Court in Hari
Singh's case (supra) was holding the field, the learned Single
H Judge of the High Court had wrongly relied on the decision of
VIJAYAN V SADANANDAN K. & ANR 473
[ALTAMAS KABIR, J.]
)
the Kerala High Court in Rajendran's case (supra). The power A
to impose a default sentence in case of non-payment of
compensation under Section 357(3) Cr.P.C. has been duly
recognized by this Court and the arguments advanced to the
contrary on behalf of the Petiiioner must, therefore, be rejected.
20. Section 357 Cr.P.C. bears the heading "Order To Pay B
Compensation". It includes in sub-Section (1) the power of the
Court to utilize a portion of the fine imposed for the purpose of
1 compensating any person for any loss or injury caused by the
offence. In addition, Sub-Section (3) provides that when a
~.

' sentence is imposed by the Court, of which fine does not form a c
part, the Court may, while passing judgment, order the accused
person to pay by way of compensation such amount as may be
specified in the order to the person who suffers any loss or injury
by reason of the act for which the accused person has been so
sentenced. It is true that the said provision does not include the
power to impose a default sentence, but read with Section 431 D
" Cr.P.C. the said difficulty can be overcome by the Magistrate
imposing the sentence. To appreciate the said legal position,
the provisions of Section 431 are set out hereinbelow:-
"431. Money ordered to be paid recoverable as fine.
Any money (other than a fine) payable by virtue of any E
·"'(' order made under this Code, and the method of recovery
of which is not otherwise expressly provided for, shall be
recoverable as if it were a fine:
•
Provided that section 421 shall, in its application to an
order under section 359, by virtue of this section, be
F
construed as if in the proviso to sub-section (1) of section
421, after the words and figures "under section 357", the
words and figures "or an order for payment of costs under
section 359" had been inserted."
G
., Section 431 makes it clear that any money other than a
fine payable on account of an order passed under the Code
· shall be recoverable as if it were a fine which takes us to Section
~
64 1.P.C.

21. Section 64 IPC makes it clear that while imposing a H
474 SUPREME COURT REPORTS (2009] 7 S. C. ,C(

A sentence of fine, the Court would be competent to include a
default sentence to ensure payment of the same. For the sake
of reference, Section 64 IPC is set out hereinbelow:-
'·
"64. Sentence of imprisonment for non-payment of
fine.-ln every case, of an offence punishable with
B imprisonment as well as fine, in which the offender is
sentenced to a fine, whether with or without imprisonment,
and in every case of an offence punishable with .,.
imprisonment or fine, or with fine only, in which the offender
is sentenced to a fine, it shall be competent to the Court
c which sentences such offender to direct by the sentence
ii
that, in default of payment of the fine, the offender shall
suffer imprisonment for a certain term, in which
imprisonment shall be in excess of any other imprisonment
to which he may have been sentenced or to which he may
D be liable under a commutation of a sentence."

22. The provisions of Sections 357(3) and 431 Cr.P.C., '
when read with Section 64 IPC, empower the Court, while
making an order for payment of compensation, to also include
a default sentence in case of non-payment of the same. The
E observations made by this Court in Hari Singh's case (supra)
are as important today as they were when they were made and ._
if, as submitted by Dr. Pillay, recourse can only be had to Section
421 Cr.P.C. for enforcing the same, the very object of Sub-
Section (3) of Section 357 would be frustrated and the relief
•
F contemplated therein would be rendered somewhat illusory.

23. Having regard to the views expressed hereinabove,
we hold that while awarding compensation under Section 357(3)
Cr.P.C., the Court is within its jurisdiction to add a default sentence
of imprisonment as was held in Hari Sing h's case (supra).
G
24. The Special Leave Petition is accordingly dismissed. j

25. The time for making the deposit is extended by three
months from today. -,.
R.P. Petition dismissed.