Under what circumstances a court is entitled to make an order to pay compensation?

Question: Under what circumstances a court is entitled to make an order to pay compensation? [UPAPO 2002]

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Answer

In India, the trial court has been empowered to pass an order for payment of compensation from the accused to the victim besides the normal imprisonment and fine paid by him. Sections 357 and 357A of CrPC specifically deal with the powers of the trial to grant compensation and costs to the victim.

According to Section 357 of the Code, if a court passes any sentence that includes a payment of a fine, the court may order that the fine be used for any of the following purposes:

• To defray any expenses incurred by the victim towards the prosecution of the accused.
• To pay any compensation to the victim for any loss or injury caused to the victim by the offence and as decided by the court. The fine amount can be used to pay such compensation and later can be recovered from the accused itself.
• In case of any death caused due to the act of the offender and the family of the victims are entitled to damages or compensation under the Motor Vehicles Act, 1988, the court may order for the utilization of a fine amount towards the payment of such compensation.
• when any person is convicted of any offence which includes theft, criminal misappropriation, criminal breach of trust, cheating, or having dishonestly received or retained, or having voluntarily assisted in disposing of, stolen property knowing or having reason to believe the same to be stolen, in compensating any bona fide purchaser of such property for the loss of the same if such property is restored to the possession of the person entitled thereto.

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