Mumbai, India – February 20, 2024 – Premchand Ashokkumar Mittal, the proprietor of M/s. Tirumala Enterprises, has been granted bail by a Mumbai Sessions Court after being convicted in a cheque dishonor case involving over Rs. 61 lakh. Additional Sessions Judge K.P. Shrikhande, presiding over Court Room No. 87 at Mazgaon, granted bail in Criminal Bail Application No. 56 of 2024, filed in connection with Criminal Appeal No. 12 of 2024.

Mittal was convicted by the trial court on November 24, 2023, under Section 138 of the Negotiable Instruments Act, which pertains to the dishonor of cheques. He was sentenced to one year of simple imprisonment and ordered to pay a fine of Rs. 61,72,732 with 9% annual interest from the date of the order until realization, all within one month. In default, he faced an additional three months of simple imprisonment.

Appeal and Bail Application:

Mittal, who had been on bail during the trial, challenged his conviction by filing an appeal. Subsequently, he filed a bail application seeking release pending the appeal’s outcome.

Court’s Reasoning and Decision:

Judge Shrikhande, after hearing the arguments presented by the advocates representing both Mittal and the complainant, M/s. G.M. Fabrics Pvt. Ltd., granted bail. The court considered that Mittal was on bail during the trial and that he had challenged the conviction. The court also noted that the substantive sentence had been suspended. Taking these factors into account, the court deemed it appropriate to grant bail.

“As the appellant No.2 was on bail during the period of trial, and as the appellants/accused have challenged the legality and propriety of the judgment of conviction and the sentence imposed by the learned trial Court by filing the appeal, and considering the same, as the substantive sentence has been suspended, I am of the view that the appellant/accused No.2 can be released on bail,” Judge Shrikhande stated in his order.

Bail Conditions:

Mittal was granted bail on the following conditions:

• He must execute a personal recognizance (PR) bond of Rs. 50,000 with a surety of the same amount.
• He must furnish bail before the trial court within one month.
• He is given the liberty to furnish provisional cash bail for one month.

Implications:

The court’s decision underscores the standard practice of granting bail to individuals convicted under Section 138 of the Negotiable Instruments Act when they have filed appeals challenging their convictions. The court’s primary consideration is the suspension of the substantive sentence and the accused’s conduct during the trial. This case reflects the common legal procedure in cheque dishonor cases where appeals are lodged.