STATE OF MAHARASHTRA Vs. HIRACHAND VIRCHAND

JUDGEMENT

(1.) These appeals have filed by the State against the order of acquittal recorded by the Presidency Magistrate, 28th Court, Esplanade, Bombay, in Criminal Case Nos. 159/P of 1973, 163/P of 1973, 164/P of 1973 and 165/P of 1973 respectively in which the accused in the respective cases were charged for offences for offences under the Forward Contracts (Regulation) Act, 1952.

(2.) There is a firm by name Messrs. Raichand Dungarshi & Co. The office of this firm is situate in a cubical of 10 x 10 on the first floor of Motiwal Building, Kalbadevi Road, Bombay. In the same premises there is also the office of M/s. Satishkumar & Co. But in the present group of appeals we are not concerned with that firm. Virchand Raichand, who is accused No. 8 in the first case is the and accused No. 2 in the remaining three cases and his mother are the partners in this firm of M/s. Raichand Dungarshi & Co. Accused No. 1 Hirachand in the first case is the son of Virchand. In the first case, besides these two accused , there are six more accused. Of them accused No. 6 Natwarlal Mohanlal is reported to be now dead.

(3.) The prosecution case was that the Forward Markets Commission established under the Forward Markets (Regulation) Act, 1952 (hereinafter referred to as "the Act") had received information from some undisclosed source that this firm of Raichand Dungarshi & Co. and some other persons were indulging in illegal forward trading and options in commodities such as silver, linseed etc. The Commission therefore deputed Devendrakumar Gupta (P.W. 2) who was working in its office as a Senior Research Assistant to Secretly make enquiries and verify the correctness of the information. It further advised him to lodge a complaint with the police if the information was found to be correct on verification.