STATE OF MAHARASHTRA Vs. RADHESHYAM MOTILAL RUNGTA

JUDGEMENT

(1.) This is an appeal impugning an order and judgment passed by the Court of Sessions, Greater Bombay, on 13 th December 2002, acquitting respondent (accused) by allowing an appeal filed against an order of conviction passed by the Additional Chief Metropolitan Magistrate, 40th Court, Girgaon, Mumbai, on 29 th January 2000 under Section 420 (Cheating and dishonestly inducing delivery of property ) of the Indian Penal Code ( IPC ).

(2.) It is the case of prosecution that accused had approached one Mr. Ramrichwal Brahmadatta Zhunzhunwala (PW-3), the father-in-law of complainant - Shashi Prabha Zhunzhunwala (PW-4), through a family friend by the name Nemani (who has not been examined) for a loan for a short period of three months. Accused was given Rs.2 lakhs in cash against bill of exchange from Mrs. Lilawati Tibrewal (PW-5), the daughter of PW-3 and a further sum of Rs.2 lakhs by way of cheque from complainant (PW-4). The first amount of Rs.2 lakhs (cash from PW-5) was given on 6 th September 1996 and the second amount of Rs.2 lakhs (by cheque from PW-4) was given on 9th October 1996. These amounts were given against interest at a rate of 18% p.a. The interest paid was deducted in advance for the first loan and as regards the second loan, a sum of Rs.15,000/- was paid by accused to PW-3 towards interest. When the amount became due, accused failed to repay the amount of Rs.4 lakhs despite repeated demands. Therefore, on 6 th January 1997, accused pledged shares of various companies together with duly signed transfer forms with PW-3 as security. As accused was still not able to repay the amount of Rs.4 lakhs, accused instructed PW-3 to sell the shares pledged and recover the amount of Rs.4 lakhs.

(3.) Complainant then tried to transfer some of the shares, viz., shares in Punjab Chemicals and Pharmaceuticals Limited and Bajaj Automobiles Limited, alongwith duly signed transfer forms. Complaint is totally silent about the other shares. The two companies replied stating that the shareholder has informed them that these shares have been stolen and therefore, the shares cannot be transferred. Complainant did not bother to sell the other shares for transfer but straightaway went to Malabar Hill Police Station and lodged a case vide C.R. No.115/1997 under Section 420 of IPC. The case was registered on 21st September 1997.