The Supreme Court has annulled a conviction against a company director who was sentenced for three counts of the offense of undischarged bankruptcy while acting as a company director.
Rohit Ram Latchan received his sentence on March 3, 2020, from the magistrate’s court, which ruled that “a conviction shall be recorded” and imposed a total fine of $500 along with a default imprisonment term of 50 days.
Mr. Latchan appealed this ruling, and his appeal was successful under sections 15(1)(f) and 16 of the Sentencing and Penalties Act. This legislation allows for the possibility of imposing a fine without necessarily recording a conviction.
Justice Alipate Qetaki, in his ruling on August 29, noted that no other individuals had been charged under section 189 of the previously enacted Companies Act, indicating the minor nature of the offense. He pointed out that this act has been decriminalized under the Companies Act of 2015.
Justice Qetaki highlighted the argument that the public interest no longer justified the enforcement of obsolete provisions, given that the offense has been decriminalized. He concluded that there had been no negative impact on third parties and that the public interest did not warrant a severe penalty.
Additionally, the personal and professional circumstances of Mr. Latchan were submitted to support the case for a nominal punishment rather than a conviction. Given that the offense has been decriminalized, the circumstances called for leniency.
As a result, Justice Qetaki ordered the previous ruling from the magistrate’s court to be overturned, stating that the conviction would not be recorded, while the $500 fine remains in effect.