Mumbai, February 20, 2024: In a significant legal development, the Mumbai Sessions Court at Mazgaon has granted bail to businessman Johnson Xavier Fransis, who was convicted by a trial court under Section 138 of the Negotiable Instruments Act. The case pertained to a cheque bounce dispute involving Shriram Chits (Maharashtra) Limited, also known as M/s. Sukakarta Industries.
Background of the Case
Fransis was convicted on January 11, 2024, by the trial court, which sentenced him to one month of simple imprisonment and imposed a fine of Rs. 45,000. Out of this amount, Rs. 40,000 was to be paid as compensation to the complainant after the appeal period elapsed. The conviction was a result of a complaint filed by Shriram Chits (Maharashtra) Limited, a registered company with its office at Nariman Point, Mumbai.
Bail Application and Court’s Decision
Following his conviction, Fransis filed a criminal appeal (No. 70 of 2024) against the trial court’s judgment and simultaneously applied for bail (Bail Application No. 273 of 2024). His counsel, Advocate Anuradha Bagwe, argued that since Fransis had been on bail throughout the trial, and had now challenged the legality of his conviction, he should be granted bail while his appeal is under consideration.
The court, presided over by Additional Sessions Judge K. P. Shrikhande, observed that the substantive sentence of imprisonment and fine had already been suspended pending appeal. Given these circumstances, the judge found it appropriate to grant bail.
Conditions of Bail
In its order dated February 8, 2024, the court set the following conditions for Fransis’ release:
- He shall be released on bail upon furnishing a Personal Recognizance (P.R.) bond of Rs. 15,000 with a surety of the same amount.
- The bail must be furnished before the trial court within one month.
- The accused is given the liberty to furnish provisional cash bail for one month.
- Any violation of bail conditions could lead to revocation of the bail order.
Legal Implications and Next Steps
The case highlights the procedural aspects of the Negotiable Instruments Act, which deals with dishonored cheques and the liabilities arising thereof. While the appeal remains pending, Fransis will remain free on bail under the specified conditions. The outcome of his appeal will determine whether his conviction is upheld or overturned.
Legal experts suggest that cases under Section 138 of the Negotiable Instruments Act often involve financial disputes where courts consider both punitive measures and compensatory remedies for complainants. Fransis’ appeal will be closely watched as it may set a precedent for similar disputes in the future.