Judgment

Bhan, J.-This judgment shall dispose of Civil Appeal No. 7426 of 1996 arising in Suit No. 24 of 1994 (filed by Standard Chartered Bank against Citibank) decided on 12th/13th March, 1996 and Civil Appeal No. 9063 of 1996 arising in Suit No. 1 of 1995 (filed by Citibank against Canbank Financial Services Ltd.), decided on 22/23/26th April, 1996. Civil Appeal No. 9138 of 1996 has been filed by Citibank against Canbank Financial Services Ltd. arising from the same suit i.e. Suit No. 1 of 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. In the year 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. ‘The Act’ was enacted to deal with this situation and, in particular, to ensure speedy