The Supreme Court has ordered the expungement of a conviction against a company director sentenced for three instances of undischarged bankruptcy while acting as a director. Rohit Ram Latchan was sentenced on March 3, 2020, by a magistrate’s court, which recorded a conviction and imposed a total fine of $500, accompanied by a default imprisonment term of 50 days.
Mr. Latchan appealed this ruling, which was upheld under sections 15(1)(f) and 16 of the Sentencing and Penalties Act. According to this legislation, a person found guilty of an offense could pay a fine “with or without recording a conviction.”
Justice Alipate Qetaki, in his ruling on August 29, noted that no other individual has faced charges under section 189 of the repealed Companies Act (Cap. 247), highlighting the minor nature of the offense. He pointed out that the act has been decriminalized under the new Companies Act 2015.
Justice Qetaki further indicated that the public interest no longer requires the enforcement of the outdated provisions, given the decriminalization of the offense. He remarked that there was no negative impact on third parties and that severe penalties were unnecessary for the case at hand. The petitioner’s personal and professional circumstances were also considered in favor of a nominal punishment rather than a conviction, with the decriminalization of the offense warranting leniency.
Consequently, Justice Qetaki ordered that the prior ruling by the magistrate’s court be annulled, no conviction to be recorded, while the aggregate fine of $500 was maintained.