STATE OF PUNJAB Vs. KESARI CHAND

JUDGEMENT

(1.) This appeal against acquittal has been placed before this Full Bench in the following circumstances :- Talwandi Sabo Co-operative Agricultural Service Society Limited, Talwandi Sabo, District Bhatinda, is a registered society under the provisions of the Punjab Co-operative Societies Act, 1961. There was an embezzlement to the tune of Rs. 1,22,116.50 as reported to the Assistant Registrar, Cooperative Societies, by an Inquiry Officer appointed for the purpose. It was detected that the embezzlement had been committed by showing bogus loans to have been advanced to some members, showing securities to have been returned to members fictitiously and by recovery of loans from certain members without showing their entries in the account books of the society. Additional embezzlement had also been committed in relation to sale of sugar which had not been accounted for in the books, etc. etc. The Assistant Registrar thus on 25-9-1970 sent a letter to the Superintendent of Police, Bhatinda, whereupon a case under S.408, Indian Penal Code, was registered and after investigation the two respondents Kesri Chand, the Secretary of the Society, and Surrinder Singh, the President thereof, were sent up for trial before a Judicial Magistrate 1st Class, Bhatinda. The challan was put in as late as on 29-4-1980.

(2.) Charge was framed under S.409, Indian Penal Code, against the accused-respondents. The prosecution examined as many as 44 witnesses. Finally on 23-12-1983, Shri. Dalbara Singh, Judicial Magistrate 1st Class, Bhatinda, acquitted the accused-respondents taking the view that S.406, Indian Penal Code, was at best attracted to the facts of the case, and as the matter had remained under investigation since the year 1970 and challan had not been put in within three years, as prescribed under S.468(2) (c) of the Code of Criminal Procedure, the prosecution was barred by limitation. Strength on the question of limitation was sought from the judgment of the Supreme Court reported in State of Punjab v. Sarwan Singh, 1982 Chand LR (Cri) 68 : (AIR 1981 SC 1054). Since the learned Magistrate was mainly basing his judgment of acquittal on this factor, he in a most casual manner disposed of the prosecution case in one paragraph reproduced hereafter :

(3.) The State of Punjab filed the present appeal against acquittal which came up before a Motion Bench consisting of M. R. Sharma and Surinder Singh, JJ., who at the motion stage referred it to a Full Bench in order to question the view of an Hon'ble Single Judge of this Court expressed in Gurmit Singh v. State of Punjab, 1977 Chand LR (Cri) 53, wherein it was held that the office-bearers of the co-operative society are not public servants within the meaning of S.21 of the Indian Penal Code and on that basis, the accused in that case were not permitted to be proceeded against under S.5(2) of the Prevention of Corruption Act, 1947. It is pursuant to that order that the case as such . has been placed before this Bench. 1