(1.) THE Coimbatore Central Co. operative Stores was issued a permit in 1957 by the Joint Chief Controller of Imports and Exports, Madras, for the export of 520 tons of Chillies to Ceylon. The purchaser in Ceylon was the Co-operative Wholesale Establishment. The Board of Directors of the Coimbatore Central Co-operative Stores allotted this quantity of Section 20 tons at follows:<FRM>JUDGEMENT_143_TLMAD0_1967Html1.htm</FRM> As against the 400 tons allotted to the Pollachi Co-operative Sales Society and Udamalpet Co-operative Sales Society, it is found that they exported only 3581 bags (40 bags are equal to a ton ). The Dharapuram Co-operative Sales Society is said so have exported 3628 bags. The Coimbatore Co-operative Marketing Society 520 bags, the Gobi Co-operative Sales Society 3210 bags, and the Karamadai Sales Society, to which no allotment was made at all, is said to have supplied 5702 bags. The contract with the Ceylon Cooperative Wholesale Establishment was for supply at the rate of Rs. 115 per cwt. The various affiliated sales societies were to supply to the Coimbatore Central Co-operative Stores at Rs. 98 per cwt. The Coimbatore Central Co-operative Stores was to purchase these chillies only from the various affiliated co-operative sales societies. These societies were themselves to purchase only the chillies produced by their members, who were actually growing the chillies. This is the effect of two circulars issued by the Registrar of Co-operative Societies, Madras marked as Ex. P. 450 and P. 451. Clauses 3, 4, 5, 6 and 7 (wrongly numbered as 5 and 6) and Clause 18 at pages 408 and 409 of the printed papers are as follows:
(2.) THE prosecution case was that the market price at about this time was Ra. 80 per bag and that the accused as a result of conspiracy between them made it very difficult for the Pollachi Cooperative Sales Society and Udamalpet Co-operative Sales Society to supply their allotted quotas and this was done by P. W. 1, the approver, who had been appointed as what was called the Selecting Agent or his men by rejecting the produce offered by the Udamalpet Co-operative Sales society, and the Pollachi Co-operative sales society. The prosecution case also was that P. W. 1 and his men purchased chilies in the open market at Dindigul and accused 3 and his men purchased chillies at Rajapalayam that in the beginning they used to send it to the various places in Coimbatore District and had it sent from those places to Tuticorin in order to make it appear that the chillies came from the respective societies in Coimbatore District, that later finding this rather inconvenient, sent their purchases directly to Tuticorin, that the difference between the market price of Rs. 80 per cwt. and Rs. 98 per cwt. which had to be paid to the Societies, was to be divided among the various conspirators and that this arrangement was in contravention of the circular of the Registrar of Co-operative Societies and condition No. 7 of the Export permit issued to the Central Co. operative Stores. P. W. 1 and accused 8 are said to have purchased 6719 bags and 12030 bags respectively and this open market purchases by P. W. 1 and accused 3 were sent to Tuticorin and it was made to appear in the account of the respective sales societies and the Cooperative Central stores as though they had been procured by the respective societies from their grower members and had been exported by them.
(3.) ON these facts 12 persons were tried by the learned Additional Sessions Judge, Coimbatore. The first accused was the Manager of the Coimbatore Central Co-operative stores; accused 2 was the Secretary of the Coimbatore Central Co-operative Stores; accused 3 was a merchant dealing in onions and chillies at Mathucai; accused 4 was the secretary of the Dharapuram primary gales Society; accused 5 was the secretary of Coimbatore Primary Marketing Society at Sulur; accused 6 was the clerk of the Sulur society; accused 7 was President and accused 8 was the clerk of the Karamadai Primary sales society; accused 9, 10 and 11 were respectively the Vive-President. Secretary and clerk of the Gobichettipalayam Primary Co-operative Sales Society, accused 12 was the power of attorney agent of K. M. Mohideen and Company, shipping find forwarding agents at Tuticorin. Of the alleged conspirators, P. W. 1 and P. W. 2, who was a clerk of the Central Stores, turned approvers. One Venkatadasari who was the clerk of the Dharapuram primary Sales society died before the trial. 61 Charges were framed in the case. It is unnecessary to set out at length the various charges against the various accused. Accused 6, 3 and 11 were acquitted by the learned Additional Sessions Judge. The rest were convicted under various charges and they have all preferred appeals to this Court. Daring the pendency of the appeal, the 4th accused, who is one of the appellants in Crl. App. 452 of 1965 died. Accused 1 to 5, accused 7, 9, 10 and 12 were found guilty on charge 2 under Section 5 of Import and Export (Control) act of 1947; accused 1 and 2 were found guilty under charge 5 of offences under Section 477a, Penal Code. Accused 4, 5, 7, 9, 10 and 12 were found guilty under charge 6 of offences under Sections 109 and 477a, Penal Code. Accused 1 and 7 were found guilty under charges 11, 13, 15, 17, 19, 21, 28 and 25 under Sections 467 and 471. Penal Code. Accused 1 and 7 were also found guilty on charges 19, 14, 16, 18, 20, 22, 24 and 26 under Sections 467 and 471, Penal Code. The seventh accused was found guilty on charge 59 of an offence under Section 199 lead with Section 193, Penal Code. Accused 9 was similarly found guilty on charge 61. There are eight appeals before this Court. The State has also filed revision petition for enhancement of sentences on the various accused.