Judgment

Bhan, J.—This judgment shall dispose of Civil Appeal No. 7941 of 1995 arising in Suit No. 22 of 1994 (filed by Standard Chartered Bank against Citi Bank & Others) decided on 10th July, 1995 and Civil Appeal No. 8340 of 1995 arising in Suit No. 20 of 1994 (filed by Citi Bank against Standard Chartered Bank & Others), decided on 7th July, 1995. Suits were tried by the Special Judge appointed under the Spe­cial Courts (Trial of Offences Relating to Transactions in Securities) Act, 1992, hereinafter referred to as ‘the Act’.

2. During 1991-92, Reserve Bank of ­India noticed that large scale irregularities and mal practices were committed in transactions in both the Government and other securities, by some brokers in collusion with the employees of various banks and financial institutions. The said irregularities and mal practices led to the diversion of funds from banks and financial institutions to the individual accounts of certain brokers. To deal with this situation and, in particular, to ensure speedy recovery of the huge amount involved and to punish the guilty and restore confidence in and maintain the basic integrity and credibility of the banks and financial institution