STATE OF MADHYA BHARAT Vs. HIRALALJI

JUDGEMENT

(1.) THE State has filed this appeal under Section 417 of the Code of Criminal Procedure against the order dated 21st August 1950 passed by the Additional City Magistrate, Indore in criminal case No. 143 of 1950 acquitting the two respondents of an offence under Section 87 (D) of the Indore Companies Act.

(2.) RESPONDENT No. 1 Seth Hiralalji is the Managing Director of the Kalyanmal Mills Ltd. , Indore, incorporated under the Indore Companies Act (Act No. 6 of 1914) and respondent No. 2 is his son who is also a permanent Director of the above said Mills. Both the respondents are proprietors of the Firm Tilokchand Kalyanmal and Co. Indore, which seems to be a joint-family business firm. This firm works as Secretaries, Treasurers and Agents of the Kalyanmal Mills Ltd. , Indore.

(3.) ON 17th November 1947, the Kalyanmal Mills Ltd. , and Tilokchand Kalyanmal and Co. , both executed a promissory note for a sum of Rs. 2 lacs at four and a half per cent interest in favour of the Bank of Indore Ltd. wherein they jointly and severally promised to pay the sum to the Indore Bank. This pro-note was renewed from time to time till 11th March 1948, and then the loan was repaid to the Indore Bank. Respondent No. 1 Seth Hiralalji executed and signed on behalf of the Kalyanmal Mills Ltd. , as well as on behalf of the Tilokchand Kalyanmal and Co. It is admitted that the sum of Rs. 2 lacs went to the Mills who subsequently paid it back to the Indore Bank.