04 March 1977
Supreme Court
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PALANIAPPA GOUNDER Vs STATE OF TAMIL NADU & ORS.

Bench: CHANDRACHUD,Y.V.
Case number: Appeal Criminal 190 of 1976


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PETITIONER: PALANIAPPA GOUNDER

       Vs.

RESPONDENT: STATE OF TAMIL NADU & ORS.

DATE OF JUDGMENT04/03/1977

BENCH: CHANDRACHUD, Y.V. BENCH: CHANDRACHUD, Y.V. GOSWAMI, P.K.

CITATION:  1977 AIR 1323            1977 SCR  (3) 132  1977 SCC  (2) 634  CITATOR INFO :  R          1978 SC1525  (11)

ACT:                 Compensation  to persons injured out of amount  rea-         lised by sentence of fine--Propriety of imposition of  heavy         fine,  while  sentencing-Guidelines to the Courts for impos-         ing  sentence of  fine--Section 357 of the Code  of Criminal         Procdure (Act 11 of 1974), 1973.

HEADNOTE:                 The  appellant was convicted by the Sessions  Judge.         Salem  for an offence under s. 302 I.P.C. and was  sentenced         to death.  The High Court modified the sentence of death  to         one  of life imprisonment.  However, exercising  its  powers         under  s. 367(4) of the Criminal Procedure Code,  1973,  the         High Court imposed a fine of Rs. 20,000/- under s. 357(1)(c)         of  the  Code.   Special Leave was granted,  by  the  court,         limiting  it into the question of propriety of the fine  im-         posed by the High Court.         Allowing the appeal in part and reducing the fine the Court,         HELD: (i) A saving provision which saves the inherent powers         of the court cannot over-ride an express provision contained         in   the   statute  which saves that power.   That  did  not         however affect the power of the High  Court to deal with the         application  merely  because  the  application  was  wrongly         described as having been made under a wrong section.  In the         instant  case, the High Court correctly passed an  order  of         compensation not under 5. 482 but under s. 357(1)(c) of  the         Code  and the application filed in the High Court was  main-         tainable  at  the instance of the son and  daughter  of  the         deceased.                               [133 H, 135 F-G]         (ii) Under s. 302 LP.C. not only a sentence of  imprisonment         for  life but even a sentence of death can  legitimately  be         combined with a sentence of fine. For the offence of murder,         the court do have the power to impose the sentence of  fine.         [136 B-C]         (iii)  Legitimacy is not to he confused with  propriety  and         the  fact that the court possesses a certain power does  not         mean  that  it must exercise it. Though there  is  power  to         combine  a  sentence of death with a sentence of  fine  that         power  is to be sparingly exercised because the sentence  of         death  is  an extreme penalty to impose and adding  to  that

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       grave  penalty  a sentence of fine is hardly  calculated  to         serve any social purpose.  [136 C-E]         (iv)  The  first concern of the court,  after  recording  an         order  of  conviction, ought to he to determine  the  proper         sentence to pass.  The sentence must be proportionate to the         nature  of  the offence and the  sentence,   including   the         sentence  of fine, must not be unduly excessive.   In  fact,         the primary object of imposing a fine is not to ensure  that         the offender will undergo the sentence in default of payment         of  fine  but  to see that the fine is  realised  which  can         happen  only when the fine is not unduly  excessive,  having         regard  to all the circumstances of the case, including  the         means of the offender.  [137 D-F]         (v)  Since by s. 357(1)(c) of the code of 1973 and its  pre-         cursor  s. 545(1)(bb) of the code of 1898  compensation  can         only come out of fine, it is always necessary to consider in         the  first instance whether the sentence of fine is  at  all         called  for, particularly when the offender is sentenced  to         death  or  life imprisonment.  If so, the fine must  not  be         execessive,  having regard to all the circumstances  of  the         case  like motivation of the  offence,  the  pecuniary  gain         likely  to have been made by the offender by committing  the         offence  and his means to pay the fine.  The High  Court  in         the instant case instead of applying its mind to these  fac-         tors, considered only what  compensation  the heirs ought to         receive.  There is no warrant for the assumption made by the         High  Court as regards the retention of "abilities in  fact"         or as regards the "extent of loss to the dependants."   [137         A-C, 138 A-C]         133         State  v.  Pandurang  Shinde, A.I.R. [1956]  Born  711,  714         referred to.         Adamji Umar Dalai v. The State of Bombay, [1952] S.C.R. 172,         applied.             (vi)  In view of the fact that the appellant  was  under         the  sentence of death since its imposition by the  Sessions         Court  and  its reduction to life imprisonment by  the  High         Court since a sentence of life imprisonment has been imposed         on the appellant that being the only other sentence  permis-         sible under the law, the fine of Rs. 20,000 is unduly exces-         sive and a sum of Rs. would meet the ends of justice.   [138         C-D]

JUDGMENT:             CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No. 190         of 1976.             (Appeal  by  Special Leave from the Judgment  and  Order         dated 15-7-1975 of the Madras High Court in Criminal  Appeal         No.  162/ 75.         Vineet Kumar and M. Mudgal, for the appellant.         A.V. Rangam and Miss A. Subhashni, for respondent No. 1         K. Jayaram and K. Ram Kurnar, for respondents Nos. 2-4.         The Judgment of the Court was delivered by             CHANDRACHUD, J.  The appellant, Palaniappa Gounder,  was         convicted  by the learned Principal Sessions  Judge,  Salem,         under s. 302 of the Penal Code and was sentenced to death on         the  charge that  on August 23, 1974 he had  committed   the         murder   of one  Sengoda Goundar.  Two appellant’s  son  and         daughter-in-law  were  convicted by the  learned  Judge  for         abetting the murder and were sentenced to life imprisonment.         The  three  accused  filed an appeal in the  High  Court  of         Madras which upheld the appellant’s conviction under s.  392         but reduced the sentence from death to imprisonment of life.

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       However,  while reducing the substantive sentence  the  High         Court  imposed a fine of Rs. 20,000/- on the  appellant  and         directed  that  out of the fine, if realised, a sum  of  Rs,         15,000/-  should  be paid to the son and  daughters  of  the         deceased  under  s.  357(1) (c) of  the  Criminal  Procedure         Code, 2 of 1974. The other two accused were acquitted by the         High  Court.  We are not concerned in this appeal  with  the         legality of the appellant’s conviction or with the acquittal         of  his daughter and son-in-law.  The special leave  granted         by this Court is limited to the question of the propriety of         the fine imposed by the High Court.             The  reason  and occasion for imposing the  sentence  of         fine was that an application was filed before the High Court         under  s. 482  of the Criminal Procedure Code by a  son  and         two  daughters  of the decased praying that  the  appellant,         his  son  and daughter-in-law be asked to pay  to  them,  as         heirs  of  the  deceased, compensation in the  stun  of  Rs.         40,000/- for the death of their father.             Section  482  of the Code under which the heirs  of  the         deceased filed the application for compensation  corresponds         to  s.  561-A of the Criminal Procedure Code of   1898.   It         saves  the  inherent powers of the High Court to  make  such         orders as may be necessary to give effect to any order under         the Code or to prevent abuse of the process of any Court  or         otherwise to secure the ends of justice.   A provision         134         which saves the inherent powers of a Court cannot  over-ride         any  express provision contained in the statute which  saves         that .power.   This is put in another form by saying that if         there is an express provision in a statute governing a  par-         ticUlar  subject matter there is no scope  for  invoking  or         exercising  the  inherent powers of the  Court  because  the         Court ought to apply the provisions of the statute which arc         made  advisedly  to govern the  particUlar  subject  matter.         From this it will be clear that the application made by  the         heirs  of the deceased for compensation could not have  been         made  under s. 482 since s. 357 expressly confers  power  on         the  court to pass an order for payment of  compensation  in         the circumstances mentioned therein.   That did not,  howev-         er,  affect  the power of the High Court to  deal  with  the         application  because  though  the  application  was  wrongly         described  as having been made under s. 482 the  High  Court         could  deal with it as if it were made under s. 357  of  the         Code.   That in fact is what the High Court proceeded to do,         for it passed the order of compensation not under s. 482 but         under s. 357(1)(c) of the Code.             Section  357  of the Code of Criminal  Procedure,  2  of         1974, reads thus:                       "357. Order to pay compensation.                       (1) When a Court imposes a sentence of fine or                       a sentence (including a sentence of death)  of                       which  fine forms a part, the Court may,  when                       passing judgment, order the whole or any  part                       of the fine recovered to be applied :--                         (a)  in  derraying  the  expenses   properly                       incurred in the prosecution;                         (b) in the payment to any person of  compen-                       sation  for any loss or injury caused  by  the                       offence, when compensation is, in the  opinion                       of the Court, recoverable by such person in  a                       Civil Court;                         (c)  when  any person is  convicted  of  any                       offence for having caused the death of another                       person or of having abetted the commission  of                       such an offence, in paying compensation to the

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                     persons  who  are, under the  Fatal  Accidents                       Act,  1855 (13 of 1855), entitled  to  recover                       damages from the person sentenced for the loss                       resulting to them from such death;                         (d)  when  any person is  convicted  of  any                       offence   which  illdudes   theft,    criminal                       misappropriation,   criminal breach of  trust,                       or cheating, or of having dishonestly received                       or retained, or of having voluntarily  assist-                       ed  in disposing of, stolen  property  knowing                       or  having reasons to believe the same  to  be                       stolen, in compensating any bona fide purchas-                       er  of such property for the loss of the  same                       if such property is restored to the possession                       of the person entitled thereto.                       135                       (2) If the fine is imposed in a case which  iS                       subject   to appeal, no such payment shall  be                       made before the period allowed for  presenting                       the   appeal has  elapsed or of an  appeal  be                       presented, before the decision of the appeal.                       (3) When a Court imposes a sentence, of  which                       fine does not form a Part, the Court may, when                       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 has suffered any loss or injury by  reason                       of  the act for which the accused  person  has                       been so sentenced.                       (4)  An order under this section may  also  be                       made  by  an Appellate Court or  by  the  High                       Court or Court of Sessions when exercising its                       powers of revision.                        (5)  At the time of awarding compensation  in                       any subsequent civil suit relating to the same                       matter, the Court shall take into account  any                       sum  paid or recovered as  compensation  under                       this section."             Clauses  (a), (b) and (d) of s. 357(1) need not be  con-         sidered firstly because the High Court has passed the  order         of  compensation trader cl. (c) and secondly  because  those         clauses have no application. No order having been passed  by         the  High Court for  derraying the expenses incurred in  the         prosecution cl. (a) does not come for consideration.  Clause         (b)  has  no application to cases in which the  heirs  of  a         person  whose death has been caused apply  for  compensation         because  that clause deals with the payment of  compensation         to   the  very person to whom. any loss or injury  has  been         caused  as a result of the offence committed against him  or         his  property and when compensation is recoverable  by  such         person in a Civil Court.   Clause (d) deals with a different         Class of cases  altogether and need not detain us.             Clause  (c) of s. 357(1) under which the High Court  has         passed  the  order  for compensation enables  the  Court  to         direct that the whole or any part of the fine recovered  may         be  applied  in paying compensation to the persons  who  are         under  the  Fatal Accidents Act, 1855  entitled  to  recover         damages from the person sentenced for the loss resulting  to         them from the death of the person whose heirs, as  described         in the Act of 1855, they claim to be.   Since under the  Act         of  1855, persons who may be compensated are the wife,  hus-         band, parent (including grand-parents) and child  (including         grand-children  and step-children), the application filed in         the  High Court was maintainable at the instance of the  son         and daughters of the deceased.

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           It  cannot  however  be overlooked that  the  order  for         compensation  can be passed under s. 357(1)(c) only when  "a         Court imposes a sentence of fine or a sentence (including  a         sentence  of death)   of which fine forms a part".   We  are         concerned  in this appeal to examine primarily the  legality         and   propriety  of. the  sentence of  fine imposed  by  the         High  Court because upon that would depend the efficacy  and         indeed  the very existence of the order for payment of  com-         pensation to  the heirs  of  the  deceased.  The   compensa-         tion, as         10--240SC1/77         136         provided  in  the  section, has to come  out  of  the  fine.         Therefore,  if on a proper application of the principles  of         sentencing,  the fine imposed by the High Court is.found  to         be  excessive  and has therefore to  be reduced,  the  order         regarding  the payment of compensation must suffer a  corre-         sponding variation.             There  can  be no doubt that for the offence  of  murder         Courts have the power to impose a sentence of fine under  s.         302  of the Penal Code.. That section provides that  whoever         commits murder shah be punished with death, or  imprisonment         for  life, and "shall also be liable to fine". That  is  why         section. 357(1) of the Code speaks  of "a sentence  (includ-         ing a sentence of death) of which fine forms a part."   That         is  only an instance of the practical application of s.  302         under  which  not only a sentence of imprisonment  for  life         but  even a  sentence of death can legitimately be  combined         with a sentence of fine.             But legitimacy is not to be confused with propriety  and         the  fact that the Court possesses a certain power does  not         mean that it must always exercise  it.  Though,   therefore,         the High Court had,  the power to impose on the appellant  a         sentence of fine alongwith the sentence of life imprisonment         the question still arises whether a sentence of fine of  Rs.         20,000/-  is  justified in the circumstances  of  the  case.         Economic  offences are generally visited  with heavy   fines         because an offender who has enriched himself  unconscionably         or  unjustifiably by violating economic laws can be  assumed         legitimately to possess the means to pay that fine.  He must         disgorge  his iII-gotten wealth.  But quite different   con-         siderations  would,  in the  generality of cases,  apply  to         matters  of the present kind.  Thought  there  is  power  to         combine  a sentence of death with a sentence of fine    that         power  in sparingly exercised because the sentence of  death         is   an extreme penalty to impose and adding to  that  grave         penalty a sentence of fine is hardly calculated to serve any         social purpose.   In fact the common trend of sentencing  is         that even a sentence of life imprisonment is seldom combined         with a heavy sentence of fine.   We cannot, of course, go so         far as to express  approval of the unqualified view taken in         some of the cases that a sentence of fine for an offence  of         murder  is wholly "inapposite" (See, for example,  State  v.         Pandurang  Shinde(1),  but before imposing the  sentence  of         fine, particularly  a heavy fine, alongwith the sentence  of         death  or  life imprisonment,  one must  pause  to  consider         whether the sentence of fine is at all called for and if so,         what  is a proper or adequate fine to impose in the  circum-         stances  of the case. As observed by this Court in  Adam  Ii         Umar Dalal v. The State of Bombay, (2) determination of  the         right measure of punishment is often a point of great diffi-         culty and no hard and fast rule can’ be laid down, it  being         a matter of discretion which is to be guided by a variety of         considerations  but the court must always bear in  mind  the         necessity  of maintaining a proportion between  the  offence

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       and  the  penalty proposed for it.  Speaking for  the  Court         Mahajan  J. observed in that case that: "in imposing a  fine         it  is  necessary to have as much regard  to  the  pecuniary         circumstances of the accused persons as to the         (1) A.I.R. [1956] Bom. 711,714.         (2) [1952] S.C.R. 172.         137         character and magnitude of the offence, and where a substan-         tial  term of imprisonment is inflicted, an  excessive  fine         should  not  accompany it except in exceptional  cases"  (p.         177).    Though  that case related to an  economic  offence,         this Court reduced the sentence of fine from Rs. 42,300/- to         Rs 4,000/- on the ground that due regard was not paid by the         lower Court to the principles governing the imposition of  a         sentence of fine.             The High Court imposed in the instant case a fine of Rs.         20,000/on  the ground that "the deceased was aged  about  48         years  and was actively supervising the cultivation  of  the         family lands and would have lived for another 15 to 20 years         with his abilities in tact, and the loss to the  dependents,         viz.,  the son and daughters would be about  Rs.  20,000/-".         Except  for the bald and bare statements contained   in  the         petition  for  compensation filed by the heirs  of  the  de-         ceased,  there is no warrant for the assumption made by  the         High  Court as regards the retention of "abilities in  tact"         or as regards the extent of "loss to the dependents".             It  appears to us that the High Court  first  considered         what  compensation ought to be awarded to the heirs  of  the         deceased and then imposed by way of fine an amount which was         higher than the compensation because the compensation has to         come  out of the amount of fine.   Apart from the fact  that         even  the compensation was  not fixed on any reliable  data,         the High Court, with respect, put the cart before the  horse         in  leaving the propriety of fine to depend upon the  amount         of  compensation.    The first concern of the  Court,  after         recording  an order of conviction, ought to be to  determine         the  proper sentence to pass.  The sentence must be  propor-         tionate  to  the nature  of the offence  and  the  sentence,         including  the sentence of fine, must not be  unduly  exces-         sive.    In fact, the  primary  object  of  imposing a  fine         is not to ensure that the offender will undergo the sentence         in  default of payment of fine but to see that the  fine  is         realized, which can happen only when the fine is not  unduly         excessive  having  regard to all the  circumstances  of  the         case, including the means of the offender.             Section  357(1)  (c)  of the  new  Code  corresponds  to         s.545(1) (bb) of the Code of 1898 which was introduced by s.         110  of Amending Act 26 of 1955.   The statement of  objects         and reasons of that Act shows that the Joint Committee  took         the  view  that, in suitable cases, the  person  who  causes         death  should  compensate the heirs and  dependents  of  the         deceased for the loss resulting from the death.    The Joint         Committee was in full agreement with the view that in a case         where  death has resulted from  homicide, the  Court  should         award compensation to the heirs of the deceased because that         would  result "in settling the claim once for all  by  doing         away  with the need for a further claim in a  civil   Court,         needless  worry  and  expense to both sides of  the  party".         The views of the Joint Committee incorporated in the  State-         ment of Objects and Reasons to the Amending Act of 1955  arc         undoubtedly  entitled to consideration but those views  only         reflect  that there should reside in the criminal Court  the         power in appropriate cases to pass an order of  compensation         in favour of the heirs of the         138

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       deceased.   It cannot, however, be overlooked that since  by         s.  35:7  (1)  (c) of the new Code  and  its  precursor,  s.         545(1)(bb)  of the old Code, compensation can only come  out         of  fine,  it is always necessary to consider in  the  first         instance whether the sentence of line is at all called  for,         particularly when the offender is sentenced to death or life         imprisonment.    If  so,  the fine must  not  be  excessive,         having  regard  to all the circumstances of  the  case  like         motivation of the offence, the pecuniary gain likely to have         been made by the offender by committing the offence and  his         means to pay the fine.             The High Court, instead of  applying its mind to   these         factors, considered only what compensation the heirs of  the         deceased ought to receive.   And that question it decided on         inadequate  data.   in view Of the fact that  the  appellant         was under the sentence of death since its imposition by  the         Sessions Court and its reduction to life imprisonment by the         High  Court  and since a sentence of life  imprisonment  has         been  imposed  on the appellant, that being the  only  other         sentence  permissible under the law, the fine of Rs.  20,000         imposed by the High Court seems to us unduly excessive.   In         the  circumstances we reduce it to a sum of Rs. 3,000/-  and         direct that the fine or so much of it as is recovered  shall         be  paid  to the son and daughters of the deceased  who  had         flied the petition in that behalf in the High Court.         S.R.                                       Appeal allowed in         part.         139