JAYAMMA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The question that is involved in this revision petition is as to the applicability of the proviso to Section 372 of Cr.P.C. and whether the said proviso is applicable with retrospective effect. Brief facts which have given raise to the aforesaid question are that, the petitioners herein were put on trial in C.C. No. 12330/04 in respect of the offences punishable under Sections 3, 4 & 9 of the Prize and Money Circulation (Banning) Act, 1978 r/w Section 420 of IPC and the case of the prosecution against the petitioners were that the petitioners who were accused Nos. 1 to 6 before the trial Court, induced several persons including the complainant to subscribe to a chit scheme which was run by them and the complainant and other persons believing the accused, contributed lakhs of rupees towards the chit fund and accused after collecting money from the complainant and other witnesses, failed to repay the money as promised and they also took loan from the complainant and other witnesses and thus, committed the act of cheating. It was also the case of the prosecution that accused Nos. 2, 3 & 6 had issued cheques in connecting with the chit fund and those cheques were issued to CWs 1 to 6 without the accused having sufficient funds in the account.

(2.) After filing of the charge sheet and accused pleading not guilty, the trial Court proceeded to record the statement of the witnesses and after the complainant PW-1 Dhanalakshmi and PWs 2 to 4 turning hostile, the trial Court thought it fit to close the case by order dated 17.12.09. The present respondents 2 and 3 though were cited as witnesses CWs 2 and 5 were not examined and therefore, they approached this Court in Crl.P.No. 3587/10 for a direction to the trial Court to examine them also and the said petition was allowed by this Court and the order of the trial Court was set aside and trial Court was directed to proceed with the trial by examining the witnesses available.

(3.) Pursuant thereto, CWs 2 & 5 were also examined and on completion of the trial, learned trial Judge acquitted the accused persons in respect of all the offences with which they were charged. It is this order of acquittal that was called in question by CWs 2 & 5 i.e., the present respondents 2 and 3 before the lower appellate Court in Crl.A .No. 132/11. Learned Judge of the lower appellate Court allowed the said appeal and judgment of acquittal passed by the trial Court was set aside and the matter was remanded to the trial Court with the following directions :-