The Supreme Court has overturned the conviction of a company director sentenced for three counts of acting as a director while being an undischarged bankrupt. Rohit Ram Latchan received his sentencing on March 3, 2020, from the magistrate’s court, which imposed a conviction along with an aggregate fine of $500 and a default prison term of 50 days.
Latchan appealed the ruling, and his appeal was successful under the provisions of the Sentencing and Penalties Act. This legislation allows an individual found guilty of an offense to pay a fine “with or without recording a conviction.”
Justice Alipate Qetaki, in a ruling delivered on August 29, noted that no other individual had been charged under the relevant section of the previously existing Companies Act, highlighting the minor nature of the offense. He also mentioned that the act has been decriminalized under the Companies Act 2015.
The court considered arguments stating that public interest no longer warranted the enforcement of the old provisions due to the decriminalization of the offense. It was also noted that there were no negative consequences for third parties, and thus a severe penalty was not required.
The justice acknowledged Latchan’s personal and professional circumstances as justification for a more lenient approach rather than a formal conviction. In conclusion, Justice Qetaki annulled the magistrate’s court decision, ensuring that the conviction would not be recorded while confirming the $500 fine.