PALLAV SHETH Vs. CANARA BANK

JUDGEMENT

(1.) This is an appeal under Section 10 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, directed against the final judgment and order dated 17.10.2005 of the Special Judge in Special Case No. 1 of 2002.

(2.) In view of nature of the order proposed to be passed in this appeal, it is not necessary to go into the details of the evidence. It would suffice to notice that there was no serious dispute raised on behalf of the appellant that he was liable to pay the agreed price of Rs.83,00,000/- for 20000 shares which were not returned to the respondent-bank. In fact the appellant had admitted the liability and issued cheques to meet it but the cheques were not honored. The defence of the appellant that such liability was only a civil liability without any criminal intention was not accepted by the learned Special Court. After discussing the relevant materials it held that dishonest misappropriation of those shares on the part of the accused is writ large. While rejecting the defence of the accused that there was no criminal intention on his part in not paying the amount of Rs.83,00,000/-, the learned Judge, Special Court in paragraph 23 of the judgment under appeal has given lucid account of relevant facts for reaching at such conclusion. Para 23 runs as follows:

(3.) Since we were inclined to agree with the aforesaid view of the learned Special Court on the basis whereof the appellant has been convicted for offence under Section 409 of the Indian Penal Code and sentenced to suffer RI for six months and to pay fine of Rs.1,00,000/- only and in default to suffer RI for further three months, a suggestion was made by Mr. Rajiv Dutta, learned senior advocate for the appellant, on the basis of instructions received, that respondent bank should file a chart showing the amount payable by the appellant after deducting the amount that has already been paid and/or after taking into consideration the adjustment of shares already made. In the light of such pro settlement stand on behalf of the appellant, an order to that effect was passed on 24th February, 2016. On the next and final date of hearing a chart showing the amount payable by the appellant to the bank was produced by Ms. Radhika Gautam, learned counsel for the respondent bank. As per the original chart Rs.58,10,000/- is the principal amount decreed against the appellant vide order dated 3.5.2007 passed by the Special Court, Mumbai in Civil Suit No. 6 of 2002. It further transpires that interest has also been allowed at the rate of 18% per annum from 20th June, 1992. After adjusting Rs.20,00,000/- paid by the appellant in 2003 by way of part settlement, the balance amount with same rate of interest till 29th February, 2016 has resulted into an amount of Rs.2,86,17,424 payable by the appellant to the Bank as on 29th February, 2016.