STATE OF PUNJAB Vs. PRITAM CHAND

JUDGEMENT

(1.) Challenge in this appeal is to the judgment of a learned Single Judge of the Punjab and Haryana High Court dismissing the appeal filed by the State of Punjab against the judgment of acquittal recorded by learned Judicial Magistrate, 1st Class, Samana. The respondents were charged for alleged commission of offence punishable under Section 406 of the Indian Penal Code, 1860 (in short the IPC)- They were partners of one Jagdamba Rice Mills to whom the paddy was entrusted for milling by the Punjab State Civil Suppl lies Corporation Ltd. (in short the Corporation) during the year 1983-84. It was alleged that the accused failed to account for the paddy and thus misappropriated the same. Pursuant to arbitration clause between the parties an arbitrator was appointed and an award of Rs. 1,81,315.43 was rendered in favour of the Corporation. The trial Court acquitted the accused on the ground that the matter arose out of breach of contract, the same was of civil nature and a criminal case against the accused was not made out.

(2.) High Court endorsed the view and dismissed the appeal.

(3.) In Suppl ort of the appeal, learned counsel for the State submitted that the High Courts judgment is totally unreasoned as no reason has been indicated. Merely because there was allegedly a breach of contract, that cannot in all cases rule out the criminal prosecution. It is pointed out that even the arbitration award on which reliance has been placed by the trial Court to direct acquittal, was a factor in favour of the Corporation and without examining the ingredients of Section 406 IPC the trial Court and the High Court directed acquittal.