Showing posts with label S 357(3) CRPC. Show all posts
Showing posts with label S 357(3) CRPC. Show all posts

Saturday, 18 April 2026

Explain The origin of victim compensation scheme as per Indian law.

  In Indian law, the victim compensation scheme originated because Section 357 CrPC was found inadequate, as it mainly depended on conviction and on the offender’s capacity to pay compensation. To address this gap, Parliament inserted Section 357A CrPC through the Code of Criminal Procedure (Amendment) Act, 2008, creating a statutory obligation on every State Government to frame a Victim Compensation Scheme for victims who suffered loss or injury and require rehabilitation.

60-second answer

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Wednesday, 17 July 2024

Supreme Court: Appellate court should impose reasonable conditions while suspending sentence of convict

 It is also of some significance to note that whereas under Section 357(1) of the Code of Criminal Procedure a fine of Rs. 5000/- can be imposed; fine in terms of Section 357(2) thereof can be twice the amount of cheque whereas there is no upper limit for award of a compensation. But the same would be subject to other provisions of the Code of Criminal Procedure which mandates that the amount of fine imposed on an accused cannot be more than Rs. 5000/-. The very fact that the Parliament did not think it fit to put a ceiling limit in regard to the amount of compensation leviable upon an accused, the discretionary jurisdiction thereto must be exercised judiciously. Ordinarily, an accused shall not be taken in custody during trial. Thus, while exercising the appellate power, ordinarily, a person should not suffer imprisonment only because the conditions imposed for suspending the sentence are harsh.{Para 68}


69. We are of the opinion that having regard to the aforementioned factors the amount of compensation not only must be reasonable one, the conditions for suspending the sentence should also be reasonable. It is only with that intent in view, the doctrine of purposive construction should be applied.

70. We would, however, like to put a note of caution that the right of an accused unnecessarily need not be enlarged but it is the court's duty to duly protect his right.

72. We, therefore, are of the opinion:

i) In a case of this nature, Sub-section (2) of Section 357 of the Code of Criminal Procedure would be attracted even when Appellant was directed to pay compensation;


ii) The Appellate Court, however, while suspending the sentence, was entitled to put the appellant on terms. However, no such term could be put as a condition precedent for entertaining the appeal which is a constitutional and statutory right;


iii) The amount of compensation must be a reasonable sum;


iv) The Court, while fixing such amount, must have regard to all relevant factors including the one referred to in Sub-section (5) of 357 of the Code of Criminal Procedure;


v) No unreasonable amount of compensation can be directed to be paid.

 IN THE SUPREME COURT OF INDIA

Criminal Appeal No. 521 of 2007 

Decided On: 10.04.2007

Dilip S. Dahanukar Vs. Kotak Mahindra Co. Ltd. and Ors.

Hon'ble Judges/Coram:

S.B. Sinha and Dalveer Bhandari, JJ.

Author: S.B. Sinha, J.

Citation: [2007 (6) SCC 528],MANU/SC/1803/2007.

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Supreme Court: Condition To Deposit 50% Of Compensation Ordered Under S.357 CrPC To Suspend Sentence Unjustified

We have heard Mr. Ishaan George, learned counsel for

the Appellant accused and Mr. Aaditya Aniruddha Pande, learned

counsel for the State. Having considered the matter in detail,

we are of the opinion that taking into account the purpose and

object of Section 357, read with its enunciation in Dilip S.

Dahanukar vs. Mahindra Co. Ltd. [2007 (6) SCC 528], the

direction of the High Court granting suspension of sentence

subject to the condition of depositing 50% of compensation is

not justified.{Para 6}

IN THE SUPREME COURT OF INDIA

CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NO. OF 2024

(@ Out of SLP(Crl.) No.10302/2023)

NIKHIL Vs STATE OF MAHARASHTRA 

Dated: July 11, 2024.
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Friday, 26 January 2024

Delhi HC Guidelines directing convicts to file an affidavit of their asset and liabilities for assessment of compensation to be granted to Victim

 Section 357 CrPC is intended to reassure the victim that he/she is not forgotten in the criminal justice system. {Para 161}

162. Section 357 CrPC is a constructive approach to crimes. It is indeed a step forward in our criminal justice system.

163. The power under Section 357 CrPC is not ancillary to other sentences but in addition thereto.

164. The power under Section 357 CrPC is to be exercised liberally to meet the ends of justice in a better way.

165. Section 357 CrPC confers a duty on the Court to apply its mind on the question of compensation in every criminal case.

166. The word „may‟ in Section 357(3) CrPC means „shall‟ and therefore, Section 357 CrPC is mandatory.

167. The Supreme Court in Ankush Shivaji Gaikwad (supra) has given directions that the Courts shall consider Section 357 CrPC in every criminal case and if the Court fails to make an order of compensation, it must furnish reasons.

Quantum of compensation

168. The amount of compensation is to be determined by the Court depending upon gravity of offence, severity of mental and physical harm/injury suffered by the victim, damage/losses suffered by the victims and the capacity of the accused to pay. While determining the paying capacity of the accused, the Court has to take into consideration the present occupation and income of the accused. The accused can also be directed to pay monthly compensation out of his income.

Financial capacity of the accused

169. Before awarding compensation, the Trial Court is required to ascertain the financial capacity of the accused. This Court has formulated the format of an affidavit to be filed by the accused after his conviction to disclose his assets and income which is Annexure-A hereto.

Victim Impact Report

170. This Court has formulated the format of Victim Impact Report (VIR) to be filed by DSLSA in every criminal case after conviction. Victim Impact Report (VIR) shall disclose the impact of the crime on the victim. The format of the Victim Impact Report in respect of criminal cases, other than motor accident cases, is Annexure B-1. The format of Victim Impact Report

in respect of motor accident cases is Annexure B-2.

Summary Inquiry

171. A summary inquiry is necessary to ascertain the impact of crime on the victim, the expenses incurred on prosecution as well as the paying capacity of the accused.

172. This Court is of the view that the summary inquiry be conducted by Delhi State Legal Services Authority (DSLSA) considering that DSLSA is conducting similar inquiry under the Delhi Victim Compensation Scheme, 2018 and is well conversant with the manner of conducting the inquiry.

173. After the conviction of the accused, the Trial Court shall direct the accused to file the affidavit of his assets and income in the format of Annexure-A within 10 days.

174. After the conviction of the accused, the Court shall also direct the State to disclose the expenses incurred on prosecution on affidavit along with the supporting documents within 30 days.

175. Upon receipt of the affidavit of the accused, the Trial Court shall immediately send the copy of the judgment and the affidavit of the accused in the format of Annexure-A and the documents filed with the affidavit to DSLSA.

176. Upon receipt of the judgment and the affidavit of the accused, DSLSA shall conduct a summary inquiry to compute the loss suffered by the victims and the paying capacity of the accused and shall submit the Victim Impact Report containing their recommendations to the Court within 30 days. Delhi State Legal Services Authority shall seek the necessary assistance in

conducting the inquiry from SDM concerned, SHO concerned and/or prosecution who shall provide the necessary assistance upon being requested.

177. The Trial Court shall thereafter consider the Victim Impact Report of the DSLSA with respect to the impact of crime on the victims, paying capacity of the accused and expenditure incurred on the prosecution; and after hearing the parties including the victims of crime, the Court shall award the compensation to the victim(s) and cost of prosecution to the State, if the accused has the capacity to pay the same. The Court shall direct the accused to deposit the compensation with DSLSA whereupon DSLSA shall disburse the amount to the victims according to their Scheme.

178. If the accused does not have the capacity to pay the compensation or the compensation awarded against the accused is not adequate for rehabilitation of the victim, the Court shall invoke Section 357A CrPC to recommend the case to the Delhi State Legal Services Authority for award of compensation from the Victim Compensation Fund under the Delhi Victims Compensation Scheme, 2018.

179. In pending appeals/revisions against the order on sentence in which Section 357 CrPC has not been complied with, the Public Prosecutor shall file an application seeking a direction from the Court for directing the accused to file his affidavit of assets and income in the format of Annexure- A and directions to DSLSA to conduct a summary inquiry to ascertain theloss/damage suffered by the victim(s) and the paying capacity of the accused in the format of Annexures-B/B-1 in terms of Sections 357(4) CrPC in accordance with procedure mentioned hereinabove.

IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of Decision: 27th November, 2020

+ CRL.A. 352/2020

 KARAN Vs STATE NCT OF DELHI 

CORAM:

HON'BLE MR. JUSTICE J.R. MIDHA

HON'BLE MR. JUSTICE RAJNISH BHATNAGAR

HON'BLE MR. JUSTICE BRIJESH SETHI

Citation: 2020:DHC:3415-DB

Author: J.R. MIDHA, J.
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Sunday, 6 December 2020

Delhi High Court directs filing of income affidavit of convict, Victim Impact Report for grant of compensation to victim


Victimology

156. Victims are unfortunately the forgotten people in the criminal justice delivery system. Victims are the worst sufferers. Victims‟ family is ruined particularly in cases of death and grievous bodily injuries. This is apart from the factors like loss of reputation, humiliation, etc. The Court has to take into consideration the effect of the offence on the victim's family even though human life cannot be restored but then monetary compensation will at least provide some solace.

157. The criminal justice system is meant for doing justice to all - the accused, the society and the victim.

158. Justice remains incomplete without adequate compensation to the victim. Justice can be complete only when the victim is also compensated.

Sections 357 & 357A of CrPC

159. Section 357 CrPC empowers the Court to award compensation to victims who have suffered by the action of the accused.

160. The object of the Section 357(3) CrPC is to provide compensation to the victims who have suffered loss or injury by reason of the act of the accused. Mere punishment of the offender cannot give much solace to the family of the victim – civil action for damages is a long drawn and a cumbersome judicial process. Monetary compensation for redressal by the Court finding the infringement of the indefeasible right to life of the citizen is, therefore, useful and at time perhaps the only effective remedy to apply balm to the wounds of the family members of the deceased victim, who may have been the bread earner of the family.

161. Section 357 CrPC is intended to reassure the victim that he/she is not forgotten in the criminal justice system.

162. Section 357 CrPC is a constructive approach to crimes. It is indeed a step forward in our criminal justice system.

163. The power under Section 357 CrPC is not ancillary to other sentences but in addition thereto.

164. The power under Section 357 CrPC is to be exercised liberally to meet the ends of justice in a better way.

165. Section 357 CrPC confers a duty on the Court to apply its mind on the question of compensation in every criminal case.

166. The word „may‟ in Section 357(3) CrPC means „shall‟ and therefore, Section 357 CrPC is mandatory.

167. The Supreme Court in Ankush Shivaji Gaikwad (supra) has given directions that the Courts shall consider Section 357 CrPC in every criminal case and if the Court fails to make an order of compensation, it must furnish reasons.

Quantum of compensation

168. The amount of compensation is to be determined by the Court

depending upon gravity of offence, severity of mental and physical harm/injury suffered by the victim, damage/losses suffered by the victims and the capacity of the accused to pay. While determining the paying capacity of the accused, the Court has to take into consideration the present occupation and income of the accused. The accused can also be directed to pay monthly compensation out of his income.

Financial capacity of the accused

169. Before awarding compensation, the Trial Court is required to ascertain the financial capacity of the accused. This Court has formulated the format of an affidavit to be filed by the accused after his conviction to disclose his assets and income which is Annexure-A hereto.

Victim Impact Report

170. This Court has formulated the format of Victim Impact Report (VIR) to be filed by DSLSA in every criminal case after conviction. Victim Impact Report (VIR) shall disclose the impact of the crime on the victim. The format of the Victim Impact Report in respect of criminal cases, other than motor accident cases, is Annexure B-1. The format of Victim Impact Report in respect of motor accident cases is Annexure B-2.

Summary Inquiry

171. A summary inquiry is necessary to ascertain the impact of crime on the victim, the expenses incurred on prosecution as well as the paying capacity of the accused.

172. This Court is of the view that the summary inquiry be conducted by Delhi State Legal Services Authority (DSLSA) considering that DSLSA is conducting similar inquiry under the Delhi Victim Compensation Scheme, 2018 and is well conversant with the manner of conducting the inquiry.


173. After the conviction of the accused, the Trial Court shall direct the accused to file the affidavit of his assets and income in the format of Annexure-A within 10 days.

174. After the conviction of the accused, the Court shall also direct the State to disclose the expenses incurred on prosecution on affidavit along with the supporting documents within 30 days.

175. Upon receipt of the affidavit of the accused, the Trial Court shall immediately send the copy of the judgment and the affidavit of the accused in the format of Annexure-A and the documents filed with the affidavit to DSLSA.

176. Upon receipt of the judgment and the affidavit of the accused, DSLSA shall conduct a summary inquiry to compute the loss suffered by the victims and the paying capacity of the accused and shall submit the Victim Impact Report containing their recommendations to the Court within 30 days. Delhi State Legal Services Authority shall seek the necessary assistance in conducting the inquiry from SDM concerned, SHO concerned and/or prosecution who shall provide the necessary assistance upon being requested.

177. The Trial Court shall thereafter consider the Victim Impact Report of the DSLSA with respect to the impact of crime on the victims, paying capacity of the accused and expenditure incurred on the prosecution; and after hearing the parties including the victims of crime, the Court shall award the compensation to the victim(s) and cost of prosecution to the State, if the accused has the capacity to pay the same. The Court shall direct the accused to deposit the compensation with DSLSA whereupon DSLSA shall disburse the amount to the victims according to their Scheme.


178. If the accused does not have the capacity to pay the compensation or the compensation awarded against the accused is not adequate for rehabilitation of the victim, the Court shall invoke Section 357A CrPC to recommend the case to the Delhi State Legal Services Authority for award of compensation from the Victim Compensation Fund under the Delhi Victims Compensation Scheme, 2018.

179. In pending appeals/revisions against the order on sentence in which Section 357 CrPC has not been complied with, the Public Prosecutor shall file an application seeking a direction from the Court for directing the accused to file his affidavit of assets and income in the format of Annexure-A and directions to DSLSA to conduct a summary inquiry to ascertain the loss/damage suffered by the victim(s) and the paying capacity of the accused in the format of Annexures-B/B-1 in terms of Sections 357(4) CrPC in accordance with procedure mentioned hereinabove.

180. All the Courts below shall send a monthly statement to the Registrar General of this Court containing the list of cases decided each month. The list shall contain the name and particulars of the case; date of conviction; whether affidavit of assets and income has been filed by the accused; whether summary inquiry has been conducted to assess the compensation and determine the paying capacity of the accused; and compensation amount awarded. The monthly statement shall also contain one page summary format of the above information. 

IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of Decision: 27th November, 2020

 CRL.A. 352/2020

  KARAN  Vs STATE NCT OF DELHI 

Coram: J.R. MIDHA, J. RAJNISH BHATNAGAR, J. BRIJESH SETHI, J. 

Author: J.R. MIDHA, J.

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Tuesday, 18 August 2020

Supreme Court: Magistrate has no pecuniary limit for grant of compensation in cheque dishonour case

 Even that apart, a Magistrate who thinks it fit that the complainant must be compensated with his loss he can resort to the course indicated in Section 357 of the Code. This aspect has been dealt with in Bhaskaran's case (supra) as follows:

"However, the Magistrate in such cases can alleviate the grievance of the complainant by making resort to Section 357(3) of the Code. It is well to remember that this Court has emphasised the need for making liberal use of that provision (Hari Singh v. Sukhbir Singh MANU/SC/0183/1988 : 1989CriLJ116 ). No limit is mentioned in the sub-section and therefore, a Magistrate can award any sum as compensation. Of course while fixing the quantum of such compensation the Magistrate has to consider what would be the reasonable amount of compensation payable to the complainant. Thus, even if the trial was before a Court of Magistrate of the first class in respect of a cheque which covers an amount exceeding Rs.5000/- the Court has power to award compensation to be paid to the complainant."
18. In our view this question does not now pose any practical difficulty. Whenever a magistrate of the first class feels that the complainant should be compensated he can, after imposing a term of imprisonment, award compensation to the complainant for which no limit is prescribed in Section 357 of the Code.

IN THE SUPREME COURT OF INDIA

Appeal (crl.) 66 of 2001

Decided On: 12.01.2001

 Pankajbhai Nagjibhai Patel   vs.  The State of Gujarat and Ors.

Hon'ble Judges/Coram:
K.T. Thomas and R.P. Sethi, JJ.

Citation: (2001) 2 SCC 595,MANU/SC/0022/2001

Author: K.T. Thomas, J.
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Wednesday, 7 August 2019

Whether court can grant imprisonment on default of payment of compensation in cheque bounce case?

Section 431 clearly provides that an order of compensation under Section 357(3) will be recoverable in the same way as if it were a fine. Section 421 further provides the mode of recovery of a fine and the section clearly provides that a person can be imprisoned for non-payment of fine. Therefore, going by the provisions of the code, the intention of the legislature is clearly to ensure that mode of recovery of a fine and compensation is on the same footing. In light of the aforesaid reasoning, the contention of the accused that there can be no sentence of imprisonment for default in payment of compensation under Section 357(3) should fail.

IN THE SUPREME COURT OF INDIA

Criminal Appeal No. 1052 of 2010 

Decided On: 11.05.2010

 K.A. Abbas H.S.A. and Ors. Vs.  Sabu Joseph and Ors.

Hon'ble Judges/Coram:
P. Sathasivam and H.L. Dattu, JJ.


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Sunday, 24 February 2019

Whether court can direct accused to deposit fine amount while suspending sentence against him?

We, thus, are of the view that Section 357 Code of Criminal Procedure has nothing to do with suspension of sentence awarded by the trial court and the sentence of fine imposed on the Accused is in no way affected by Section 357(2) Code of Criminal Procedure The present is not a case where trial court has directed payment of any compensation to anyone out of fine imposed. There is no direction for payment of compensation in the order of the trial court nor present case is covered by the circumstances mentioned in Sub-clauses (a) to (d) of Section 357(1) Code of Criminal Procedure Present is also not a case of Section 357(3) Code of Criminal Procedure Hence, there is no question of applicability of Section 357(2) Code of Criminal Procedure The heading of Section 357 Code of Criminal Procedure throws considerable light in finding the object and purpose of the Section. Section 357 Code of Criminal Procedure is only attracted when Court orders for payment of compensation. Section 357 is not attracted in any other case.

In view of the foregoing discussion, we are of the view that Section 357(2) Code of Criminal Procedure was not attracted in the present case since there was no direction of payment of any compensation out of the fine imposed by the trial court as part of sentence. Section 357 Code of Criminal Procedure (2) comes into play only where any order of payment of compensation utilising the fine imposed as sentence Under Section 357(1) Code of Criminal Procedure or compensation as directed Under Section 357(3) Code of Criminal Procedure is made. Present being neither a case of Section 357(1) Code of Criminal Procedure nor Section 357(3), Sub-section (2) of Section 357 Code of Criminal Procedure is clearly not applicable and the submissions raised by the learned Counsel for the Appellant are without any substance. We, thus, do not find any infirmity in the impugned order of the High Court where the High Court has directed the Appellant to deposit the fine awarded by the trial court. In the result, the appeal is dismissed.

IN THE SUPREME COURT OF INDIA

Criminal Appeal No. 406 of 2018 (Arising out of SLP (Crl.) No. 1994 of 2018)

Decided On: 23.03.2018

Satyendra Kumar Mehra Vs. The State of Jharkhand

Hon'ble Judges/Coram:
A.K. Sikri and Ashok Bhushan, JJ.

Citation:(2018) 15 SCC 139
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Sunday, 15 January 2017

Whether court can direct payment of compensation where fine is already part of sentence?

 Section 357 (3)          Cr.P.C. provides that           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. It is clear from

sub Section (3) of Section 357 Cr.P.C., that the court

can award compensation                 under Section 357 (3) Cr.P.C.

only if fine does not form part of the sentence.                 If fine

forms part of the sentence,                  the Court can award

compensation only under Section 357 (1) Cr.P.C. and not

under Section 357 (3) Cr.P.C.                The compensation under

                          

Section 357 (1) Cr.P.C can be            awarded only out of the

fine amount and hence, the said compensation cannot

exceed the fine amount. When there is no sentence of fine,

no direction          for compensation under Section 357 (1)

Cr.P.C can be issued. If the Court imposes a sentence other

than fine, the Court can award compensation under Section

357 (3) Cr.P.C., if the Court deems it necessary.


      10.     The Apex Court in Sivasuriyan v. Thangavelu

[(2006) 1 SCC (Cri) 532] considered the question as to

whether the Court can direct payment of compensation in

exercise of power under sub-section (3) of Section 357 in a

case where fine already forms part of a sentence and held

that the power under Section 357 (3) Cr.P.C. can be

exercised only when Court imposes sentence of which fine

does not form a part.


      11.        In the present case, the only sentence awarded

by the appellate court was fine. Since sentence of fine was

awarded by the appellate court, the order of the appellate

court awarding           compensation    under Section 357 (3)

                      
Cr.P.C is not legal and correct and consequently, the same

cannot be sustained.
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

                         PRESENT:

       MR. JUSTICE B.SUDHEENDRA KUMAR

 7TH DECEMBER 2016/

             Crl.Rev.Pet.No. 507 of 2011 

    KOLATTERI PURUSHOTHAMAN,
   Vs
         P.B.MOHAN KUMAR,
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Sunday, 18 January 2015

Basic principles for grant of compensation to victim


Just compensation to the victim has to be fixed having regard to the
medical and other expenses, pain and suffering, loss of earning and
other relevant factors. While punishment to the accused is one aspect,
determination of just compensation to the victim is the other. At times,
evidence is not available in this regard. Some guess work in such a
situation is inevitable.
Compensation is payable under Section 357
and 357-A. While under section 357, financial capacity of the accused
has to be kept in mind, Section 357-A under which compensation
comes out of State funds, has to be invoked to make up the
requirement of just compensation.
NON-REPORTABLE
IN THE SUPREME COURT OF INDIA
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO. 99 OF 2015

MANOHAR SINGH  Vs STATE OF RAJASTHAN AND ORS.

Dated:JANUARY 16, 2015

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Sunday, 13 January 2013

Supreme court: Court should consider the capacity of accused to pay before issuing a direction to pay compensation


"The payment by way of compensation must, however, be reasonable. What is reasonable, may depend upon the facts and circumstances of each case. The quantum of compensation may be determined by taking into account the nature of crime, the justness of claim by the victim and the ability of accused to pay. If there are more than one accused they may be asked to pay in equal terms unless their capacity to pay varies considerably. The payment may also vary depending upon the acts of each accused. Reasonable period for payment of
compensation, if necessary by instalments, may also be given. The court may enforce the order by imposing sentence in default."
In Sarwan Singh & Ors. vs. State of Punjab [(1978) 4 SCC 111], this Court held :
"...Though Section 545 enabled the court only to pay compensation out of the fine that would be imposed under the law, by Section 357 (3) when a Court imposes a sentence, of which fine does not form a part, the Court may direct the accused to pay compensation. In awarding compensation it is necessary for the court to decide whether the case is a fit one in which compensation has to be awarded. If it is found that compensation should be paid, then the capacity of the accused to pay a compensation has to be determined. In directing compensation, the object is to collect the fine and pay it to the person who has suffered the loss. The purpose will not be served if the accused is not able to pay the fine or compensation for, imposing a default sentence for non-payment of fine would not achieve the object. If the accused is in a position to pay the compensation to the injured or his dependents to which they are entitled to, there could be no reason for the court not directing such compensation. When a person, who caused injury due to negligence or is made vicariously liable is bound to pay compensation it is only appropriate to direct payment by the accused who is guilty of causing an injury with the necessary mens rea to pay compensation for the person who has suffered injury."
The purpose of imposition of fine and/or grant of compensation to a great extent must be considered having the relevant factors therefor in mind. It may be compensating the person in one way or the other. The amount of compensation sought to be imposed, thus, must be reasonable and not arbitrary. Before issuing a direction to pay compensation, the capacity of accused to pay the same must be judged. A fortiori, an enquiry in this behalf even in a summary way may be necessary. Some reasons, which may not be very elaborate, may also have to be assigned; the purpose being that whereas the power to impose fine is limited and direction to pay compensation can be made for one or the other factors enumerated out of the same; but sub- Section (3) of Section 357 does not impose any such limitation and thus, power thereunder should be exercised only in appropriate cases. Such a jurisdiction cannot be exercised at the whims and caprice of a judge.
If a fine is to be imposed under the Act, the amount of which in the opinion of the Parliament would be more than sufficient to compensate the complainant; can it be said, that an unreasonable amount should be directed to be paid by the Court while exercising its power under sub-Section (3) of Section 357? The answer thereto must be rendered in the negative. Sub- Section (5) of Section 357 also provides for some guidelines. Ordinarily, it should be lesser than the amount which can be granted by a Civil Court upon appreciation of the evidence brought before it for losses which might have reasonably been suffered by the plaintiff. Jurisdiction of the Civil Court, in this behalf, for realization of the amount in question must also be borne in mind. A criminal case is not a substitution for a civil suit, far less execution of a decree which may be passed.
Prosecution under the Act may be contemplated as a measure of deterrence, but the same is never meant to be a persecution.
Even in a case where violation of fundamental right guaranteed under Article 21 is alleged, the amount of compensation cannot be arbitrary or unreasonable even under Public Law.

Supreme Court of India
Dilip S. Dahanukar vs Kotak Mahindra Co. Ltd. & Anr on 10 April, 2007
Bench: S.B. Sinha, Dalveer Bhandari
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