That is somewhat correct R.Purusothaman. We capture screenshot first then crop it. So by implementation, if you catch the exception you still have the screenshot available, just uncropped. If you don't, you still have the uncropped screenshot also, but the test stops due to exception, and the system (Java/WebDriver) may tend to delete the screenshot file, if you saved it as a "temp" file, and if not, you'd still have it in the file system. And depending on the framework used, if it takes screenshot on exceptions/failures, you may get yet another screenshot when the element exception occurs for the cropping step.
Though one must acknowledge that Selenium WebDriver is not just a test tool, it can be used for automation for other purposes too. Others have used it for said other purposes though the majority is for testing. And as such, taking screenshots, while intended for test failures, is not solely restricted to such. It can be used to capture and assess or compare against known benchmark reference screenshots, whether that be manual or automated. Or for archival purposes to view the state of the site/browser at any given time, even for successful tests.