KUMARAN vs STATE OF KERALA

The Supreme Court ruled that under Section 138 of the Negotiable Instruments Act, compensation ordered by the court remains recoverable even if the accused has undergone a default sentence for non-payment. The Court clarified that the provisions of Section 421 of the Criminal Procedure Code allow for recovery of compensation despite the completion of the default sentence, emphasizing that the Magistrate must record special reasons if proceeding under Section 421 after the default sentence. The High Court's decision to uphold the recovery of compensation was affirmed, reinforcing the legal principle that compensation is distinct from imprisonment.