The Supreme Court has overturned a conviction against a company director who faced sentencing for three counts of acting as a company director while undischarged bankrupt. Rohit Ram Latchan was initially sentenced on March 3, 2020, by a magistrate’s court, which recorded a conviction and imposed a fine of $500 with a 50-day default imprisonment term.
Latchan subsequently appealed this decision, which was successful under section 15(1)(f) and section 16 of the Sentencing and Penalties Act. This legislation allows a guilty party to pay a fine “with or without recording a conviction.”
Justice Alipate Qetaki highlighted in his ruling on August 29 that no other individuals have been prosecuted under the relevant provisions of the Companies Act (Cap. 247), indicating the minor nature of the offence. He noted that the act has been decriminalized under the new Companies Act of 2015.
Justice Qetaki stated, “The petitioner argues that public interest no longer requires enforcement of the old provisions since the offence has been decriminalised. There has been no adverse effect on third parties, and a harsh penalty is not necessary.” The petitioner presented his personal and professional circumstances, advocating for a nominal punishment instead of a recorded conviction, citing the decriminalization of the offence as a basis for leniency.
As a result, Justice Qetaki ordered the magistrate’s ruling to be annulled, confirming that no conviction would be recorded while maintaining the aggregate fine of $500.