(1.) On 11-6-1953. Provisional Liquidator. Simla Banking and Industrial Company, Limited, hereinafter called the banking-company, reported to the Superintendent of Police that Shri Ram Narain had committed an offence under Section 420. I. P. C. In that report the provisional Liquidator stated that in 1947 Shri Ram Narain had pledged with the Banking-company scrips of five hundred shares of the East Indian Coal Company, Limited, Calcutta, as security for the repayment of the amount payable by him in the cash credit account. Shri Ram Narain obtained duplicate scrips of the five hundred shares of the East Indian Coal Company, Limited, Calcutta, on the representation that the original scrips had been lost. Shri Ram Narain sold the scrips but failed to deposit the proceeds of the shares with the banking-Company. In this manner Shri Ram Narain, it was stated in the report, had diminished the security for the repayment of the amount payable by him. in the cash credit account. In the report it was stated that the fraud practised on the banking company was a consequence of the deception practised on the East Indian Coal Company, Limited, Calcutta.
(2.) As a result of the investigation the Police reported in writing that Shri Ram Narain had committed an offence under Section 420, I. P. C. On 23-11-1953, the District Magistrate sent the case for trial to the Addl. District Magistrate, Simla. On 24-12-1953. Shri Ram Narain objected to the jurisdiction of the Magistrate to try the offence on the ground that the facts given in the initial report did not bring the case within Section 179, Cr. P, C., hereinafter called the Code.
(3.) In the Court of the Additional District Magistrate it was said that the question of jurisdiction was to be decided on the initial report under Section 154 of the Code and the Police 'challan' and that other evidence could not be used to determine the question of jurisdiction. In deciding the point the Additional District Magistrate said: