(1.) ACCUSED Ramchandra and Ramprasad were prosecuted, the former under Sec. 406, I.P.C. and the latter under Sec. 406 read with Sec. 109, I.P.C. before the Addl. District Magistrate Rajgarh who found both of them guilty and acquitted them.
(2.) FACTS material for the purpose of present appeal are as follows. In the town of Rajgarh during the period when cloth control order was in force there was an Association of dealers in cloth known as Cloth Association Rajgarh, The Association used to obtain cloth from the Government at Control prices and used to distribute the same amongst its members in accordance with their respective quotas. Money needed for the purchase of cloth by the Association used to be contributed by the members proportionate to their quotas fixed by the Association. One Bhawanilal was the President of this Association and the money contributed by the members used to be placed under his charge for being used for the aforesaid purpose. It is said that Bhawanilal's son Ramchandra and his brother Ramprasad also worked in this connection on his behalf.
(3.) WHILE the matter was being investigated the members of the Association lodged a report on 29 -2 -1952 alleging that the President Bhawanilal at whose instance they had entrusted Rs. 13,420/ - to his son Ramchandra for purchase of cloth on behalf of the Association, did neither purchase the same nor returned their money and that on their demanding one of the two had falsely alleged that the money was carried away by thieves.