JUDGMENT

Rajendra Babu, J.-This appeal is filed under Section 10(1) of the Special Court (Trial of Offences relating to Transaction in Securities) Act, 1992 (hereinafter referred to as the Act ). A suit had been filed by the Standard Chartered Bank (SCB) against Canbank Mutual Fund (CMF) for refund of a sum of Rs. 72.25 crores claiming the same to be due under three SGL transfer forms in Government of India security transactions purported to have been undertaken between SCB and CMF in August/September 1991. In the course of the written statement CMF took the stand that the transactions were squared off on the basis of documents made available to the appellant before affirming the written statement and tendering evidence.

2. The Special Court held that taking up a false defence as pleaded in the written statement and repeating the same in the evidence in chief amounts to contempt of court and convicted the appellant to undergo simple imprisonment for a period of two weeks and pay fine of Rs. 2 thousand. The learned Judge in the course of the order held that perjury is contempt and there is a growing tendency amongst parties not to honour their commitments and pay up their dues and li