CROWN PROSECUTOR Vs. JMCIVER; KSNARASIMHACHARI

JUDGEMENT

(1.) One Rao Bahadur Soora Lakshmiah Chetty by his agent Gopalaswamy Chetty instituted a complaint in the Court of the Chief Presidency Magistrate, Egmore, Madras against J. Mclver the senior partner of Messrs. Huson Tod & Co. a firm of stock-brokers Madras as first accused, and K.S. Narasimhachari, one of the assistants of the said firm as the second accused, charging them with offences punishable : under Secs.406 and 420, Indian Penal Code-- "Criminal breach of trust" and "cheating and dishonestly inducing delivery of property". The learned Magistrate acquitted the accused; and this appeal has been filed by the Government against the order of acquittal.

(2.) The complaint alleged that in or about November 1934 Messrs. Huson Tod & Co., purchased for and delivered to the complainant 6 1/2 per cent. 1935 Bombay Development Loan Bonds of the value of Rs. 3,50,000 receiving full payment therefor, that in or about the last week of March 1935 the second accused represented to him that his firm had entered into a contract with the Imperial Bank of India to sell and deliver to them 6 per cent, 1935 Bombay Development Loan Bonds, that with a view to perform the contract, the accused's firm had purchased from Bombay the requisite quantity of paper but that the Imperial Bank had returned the same on the ground that the endorsement on them was irregular, that the bonds had been sent to Bombay for rectification and that pending the receipt of the bonds from Bombay the complainant might oblige the firm temporarily by giving them his bonds of the said denomination and value to satisfy the Imperial Bank, and that as soon as the bonds purchased by them were received back from Bombay with the endorsements rectified, the complainant's bonds would be returned to him.

(3.) It was further alleged that on the 27 of March the second accused renewed his request saying that the Bombay bonds had not arrived and as that was the last day for completion of the contract with the Bank the complainant should oblige the firm by giving his bonds temporarily for a few days and assured him that he hoped to receive the Bombay Bonds sent for rectification by the 30 of March, and that the complainant's Bonds would be returned to him on the 1 of April positively.