In Brief
Two directors of a company were convicted under Section 138 of the Negotiable Instruments Act and sentenced to 10 months imprisonment with a total compensation liability of Rs. 5 crores. After appeals were dismissed, they sought bail and suspension of sentence by offering to settle for Rs. 4.63 crores. The High Court granted interim protection but later cancelled it when they failed to pay the agreed amount by the stipulated date. The Supreme Court upheld the cancellation, holding that the inter se settlement between the two convicts regarding payment apportionment did not bind the complainant. Since the total agreed amount was not paid, the automatic withdrawal clause in the High Court's order applied, and bail and suspension of sentence were properly cancelled.
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