[2025] 3 S.C.R. 926 : 2025 INSC 799

Tr. A. Babu v.

State of Tamil Nadu

(Criminal Appeal No. 1413 of 2025)

18 March 2025

[Vikram Nath and Sandeep Mehta, JJ.]

Issue for Consideration

Matter pertains to the quantum of sentence imposed on the appellant and his release on bail on deposit of enhanced amount of fine.

Headnotes†

Sentence/sentencing - Suspension of sentence - Payment of enhanced fine - Grant of bail - Wife of the appellant was the Minister for Social Welfare and Nutritious Meals Scheme, who registered two trusts, wherein the appellant and his mother-in-law were appointed as trustees - Appellant, his wife, and the other co-accused misappropriated grant-in-aid funds for their own benefits, which were meant to be used for institutions for specially-abled children - Trial court convicted and sentenced them - Appellant and his wife filed appeal before the High Court - Appeal of the co-accused wife stood abated on her death - High Court rejected the appeal of the appellant - Challenge to:

Held: Findings of the trial court and the appellate court regarding the charges of criminal misconduct and criminal breach of trust and misappropriation attributed to co-accused wife have attained finality - Appellant, now about 68 years old, is repenting and in order to show his bona fides has volunteered to deposit an enhanced fine of Rs.5 crores which may be utilised for the benefit of the specially-abled children - In view thereof, the appellant to be released on bail subject to terms and conditions - Appellant to file an undertaking that he would deposit the balance amount of enhanced fine with the Registry of the Supreme Court and on failure to do so, the bail would be cancelled automatically - Entire amount of Rs.5 crores to be transmitted to the account of the State Legal Services Authority to be invested in an interest-bearing fixed deposit account in a Nationalised bank - Juvenile Justice


Committee of the High Court of Tamil Nadu to utilise the interest generated from this amount for the benefit of the Government established/operated childcare institutions in the State - Prevention of Corruption Act, 1988. [Paras 9, 10, 14-17 ]

List of Acts

Prevention of Corruption Act, 1988; Juvenile Justice Act, 2015.

List of Keywords

Bail; Suspension of sentence; Enhanced fine; Misappropriation of grant-in-aid funds; Minister for Social Welfare and Nutritious Meals Scheme; Mercy Mother India Charitable Trust; Bharani Swathi Educational Trust; Quantum of sentence; Release on bail on deposit of enhanced amount of fine; Institutions for specially-abled children; Criminal misconduct; Criminal breach of trust; Misappropriation; Benefit of the specially-abled children; Invested in interest-bearing fixed deposit account in a Nationalised bank; Juvenile Justice Committee of the High Court of Tamil Nadu; Childcare institutions.

Case Arising From

CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No. 1413 of 2025

From the Judgment and Order dated 05.09.2024 of the High Court of Judicature at Madras in CRLA No. 545 of 2021

Appearances for Parties

Advs. for the Appellant: S. Nagamuthu, Sr. Adv., P. Krishnan, Ms. Harsha Tripathi, Balaji Srinivasan.

Adv. for the Respondent: Sabarish Subramanian.

Judgment / Order of the Supreme Court

Order

Heard.

Leave granted.

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The appellant1 (A-4) and the co-accused persons2 faced trial before the Ld. ASJ, Additional Special Court3 for the criminal cases relating to elected MPs and MLAs, Chennai. They were charged for criminal misconduct under the Prevention of Corruption Act, 1988,4 criminal breach of trust and misappropriation of grant-in-aid funds amounting to Rs.15,45,000/-. These grants were made for running schools for the welfare of 'Severely Orthopedically Handicapped Children' and 'Deaf' children. A-2 died during pendency of the trial and thus, the trial against him stood abated. Vide judgment dated 29th September, 2001, the trial Court acquitted A-5 and convicted appellant (A-4) and other co-accused persons(A-1) and (A-3) and sentenced them as below.:-

Accused(s) Sections Sentence

Appellant/Accused-4 Section 120(B)read with Section 409 IPC read with 13(2) read with 13(1)(d) of the PC Act

and

Section 109 read with Section 409

IPC

and

Section 109 IPC read with Section 13(2) read with Section 13(1)(d) of the PC Act

Sentenced to undergo 5 years rigorous imprisonment and to pay a fine of Rs.10,000/-, in default to undergo 6 months rigorous imprisonment.

1 Tr. A. Babu/Accused No. 4. (Hereinafter, referred to as 'appellant (A-4)'.

2 The other accused namely are, Indirakumari/Accused No.1, wife of appellant herein (A-4); T.K.

Kirubakaran/Accused No.2, Secretary to the Government, Social Welfare and Nutritious Scheme (A-2); Dr. P. Shanmugam/Accused No.3, Director of Rehabilitation of the Disabled (A-3) and R. Venkatakrishnan/ Accused No.5, junior P.A. to A-1 (A-5).

3 Hereinafter, referred to as 'trial Court'.

4 Hereinafter, referred to as 'PC Act'.


Indirakumari/ Accused No.1 (wife of the appellant)

Section 120(B) IPC read with Section 409 IPC read with Section 13(2) read with 13(1)(d) of the PC Act

and

Section 409 IPC

and

Section 13(2) read with Section 13(1)

(d) of the PC Act

Sentenced to undergo 5 years rigorous imprisonment and to pay a fine of Rs.10,000/-, in default to undergo 6 months rigorous imprisonment.

Dr. P. Shanmugam Accused No. 3 Section 120(B) IPC read with Section 409 IPC read with Section 13(2) read with Section 13(1)

(d) of the PC Act

and

Section 409

and

Section 13(2) read with Section 13(1)

(d) of the PC Act

Sentenced to undergo 3 years rigorous imprisonment and to pay a fine of Rs.10,000/-, in default to undergo 6 months rigorous imprisonment.

The appellant and his wife Indirakumari (A-1) preferred a joint Criminal Appeal No. 545 of 2021 before the High Court to challenge their conviction and sentences as awarded by the trial Court. During the pendency of the appeal, Indirakumari (A-1) passed away and thus, her appeal stood abated. The appeal preferred by the appellant (A-4) has been rejected by the High Court vide judgment dated 5th September, 2024, and hence, this appeal by special leave.

On 14th February, 2025, Shri S. Nagamuthu, learned senior counsel for the appellant, confined his submissions to the question of sentence only and urged that, while reducing the sentence, the fine amount

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may be enhanced, which may be directed to be utilised for the benefit of the specially-abled children. Accordingly, limited notice was issued on the aspect of sentence and the prayer for grant of bail. Further, on the submissions/offer made by Shri S. Nagamuthu on 14th February, 2025, as an interim measure, an amount of Rs. 50 lakhs was directed to be deposited with the Registry of this Court.

The same has been complied with.

Today, the matter has been taken up for consideration of the application for bail/suspension of sentence filed on behalf of the appellant.

On a perusal of the record, it transpires that the charges against the appellant (A-4) and the other co-accused persons5 were of misappropriating the funds, for their own benefits, which were meant to be used for institutions for specially-abled children. Indirakumari (A-1), being the wife of the appellant herein (A-4) was the Minister for Social Welfare and Nutritious Meals Scheme, who registered two trusts, namely M/s. Mercy Mother India Charitable Trust and M/s Bharani Swathi Educational Trust, wherein the appellant (A-4) and the mother of Indirakumari (A-1) were appointed as trustees.

The appellant (A-4) was appointed as a lifelong managing trustee vested with all the powers and functions of the trusts. A sum of Rs. 15,45,000/- was sanctioned by way of grant-in-aid to these trusts by the social welfare department. On a complaint being filed, the matter was investigated, and it came to light that the grant-in-aid was sanctioned without conducting proper audit and inspection. A huge sum of money was bestowed by way of grant-in-aid to schools for handicapped children which were not even in existence.

Shri S. Nagamuthu, learned senior counsel, tried to urge that the appellant was implicated in this case only on the ground of him being a managing trustee of the above-mentioned two trusts and that he had no active role to play in the alleged criminal misconduct and/or misappropriation. However, he was not in a position to dispute that the grant-in-aid to the tune of Rs. 15,45,000/- was extended without entitlement, audit or inspection and that several of the beneficiary schools purportedly established by the respective trusts were not even in existence.

5 Supra Note 2.


We find that so far as the findings of the trial Court and the appellate Court regarding the charges of criminal misconduct and criminal breach of trust and misappropriation attributed to Indirakumari (A-1) are concerned, the same have attained finality because the appeal against conviction filed on behalf of the said accused has abated.

10. Shri S. Nagamuthu has not challenged the conviction of the appellant (A-4). His submission was that the appellant (A-4), who is now about 68 years old, is repenting and in order to show his bona fides, he is ready to pay an enhanced amount of fine which may be used for restoration/rehabilitation of children in need of care and protection/ children in conflict with law as per the mandate of the Juvenile Justice Act, 2015.

11. Shri S. Nagamuthu submitted on instructions that the appellant (A-4) is ready to unconditionally deposit a sum of Rs. 5 crores, including the amount of Rs. 50 lakhs already deposited for this purpose. However, his fervent plea was that the appellant (A-4) may be released on bail during the pendency of the appeal.

12. Learned counsel representing the State opposed the submissions advanced by the appellant's counsel.

13. Having heard and considered the submissions raised at Bar and after going through the material available on record, while affirming the findings of guilt recorded by the Courts below qua the appellant, we deem it fit to entertain this appeal limited to the extent of quantum of sentence only.

14. The appellant is about 68 years of age as on date. The incident took place between the years 1990-1996 and the trial was drawn out over more than two decades. In the facts and circumstances noted above and considering the fact that the appellant by way of repentance has volunteered to deposit an enhanced fine of Rs. 5 crores, we hereby direct that the appellant shall be released on bail subject to such terms and conditions as may be imposed by the trial Court.

15. Shri S. Nagamuthu prays that the accused appellant may be granted three months' time to deposit the balance amount of Rs. 4 crores and 50 lakhs. Thus, it is directed that the appellant shall immediately and not later than two weeks from today, file an undertaking in this Court that he shall deposit the balance amount of Rs. 4 crores and 50 lakhs with the Registry of this Court on or before 18th June, 2025.

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16. In case the appellant (A-4) fails to furnish the undertaking and deposit the amount in the above terms, the bail granted to him shall stand cancelled automatically and he shall be taken back into custody to serve the remaining sentence. However, if the compliance is made, the entire amount of Rs. 5 crores including the sum of Rs. 50 lakhs deposited earlier shall be transmitted to the account of the Tamil Nadu State Legal Services Authority to be invested in an interestbearing fixed deposit account in a Nationalised bank.

17. The Juvenile Justice Committee of the High Court of Tamil Nadu shall, in its own wisdom, be authorised to utilise the interest generated from this amount for the benefit of the Government established/operated childcare institutions in the State of Tamil Nadu.

18. List on 14th July, 2025 for reporting compliance.

Result of the case: Matter to be listed for compliance.

†Headnotes prepared by: Nidhi Jain