JASWANTRAI MANILAL AKHANEY Vs. STATE OF BOMBAY

JUDGEMENT

(1.) "The accused is charged under S. 409, Indian Penal Code for committing criminal breach of trust in respect of property to wit 3 per cent Government Promissory Loan Notes 1966-68 of the face value of Rs. 50,000 and 2 1/2 per cent Government Promissory Notes 1961 of the face value of Rs. 25,000 in or about February to May 1949 entrusted to him in his capacity as Managing Director of the Exchange Bank of India and Africa Ltd. and belonging to the Cambay Hindu Merchants Co-operative Bank. (Detailed charge is separately framed)".

(2.) The appellant at all material times was the Managing Director of the Exchange Bank of India and Africa Ltd., with its head office at Bombay, which hereinafter will be referred to as the Exchange Bank. He held a power of attorney to act as the Managing Director on behalf of the Directors of the Company. By that power the accused was invested with the authority to borrow money on behalf of the Bank. In 1944 the Cambay Hindu Merchants Co-operative Bank at Cambay, which herein-after will be referred to as the Co-operative Bank, had opened a current account with the Exchange Bank. On instructions from the Co-operative Bank, the Exchange Bank purchased in August 1946 securities worth Rs. 25,000 in its own name with money belonging to the Co-operative bank and the securities were kept with the Exchange Bank as a cover for overdraft.

(3.) In the meantime, in answer to a letter from the Co-operative Bank to the Exchange Bank asking for a certificate for the securities held by the latter on behalf of the former in the overdraft account, the Exchange Bank issued the certificate dated 1-4-1949 to the effect that at the close of business on 31-3-1949 it held Government of India securities of the total value of Rs. 75,000 as security against the overdraft facilities granted to the Co-operative Bank and that there was no overdraft against the said securities on that date.