Judgement

MAHAJAN, J. :

The above batch of appeals against the order of the High Court of Judicature at Madras dated 14-8-1951 is before us by special leave.

2. The appellants preferred a number of petitions to the High Court in what is known as the Hanuman Bank Conspiracy Case to quash no less than 67 charges framed against them by the Special Magistrate, Tanjore. The High Court quashed all the charges but directed a retrial of the appellants (who were some of the accused) on the charge of conspiracy between October 1946 and April 1947 to falsify bank accounts and to bring into existence a false balance-sheet. It also decided to withdraw the case under Section 526 (1)(e), Criminal P. C. to itself and added a direction under S. 526 (2) that the case be tried by warrant procedure but without a jury. A strong recommendation was made to the Govt. for the appointment of a Director of Prosecutions on a fixed salary not much below that of a High Court Judge for handling this and other complicated cases.

3. The facts giving rise to these appeals are these:

The Hanuman Bank was incorporated in Tanjore in 1933 with an authorized capital of Rs. 20,000/-. This was increased to five lakhs in 1943, and to seven lakhs in 1946. Accused 1, a retired Chief Engineer of the Public Works Department was the president of the Board of Directors of the Bank. Accused 2, ia ex-clerk of the Registration Department, was its Managing Director, Accused 3, an ex-clerk of some coffee plantations was one of the promoters of bank and also its director. Accused 4, a doctor practising at Nagapattinam, was another director. Accused 5 was the auditor of the bank from its inception, while accused 6 was his assistant. Accused 7 to 10 held the office of Secretary, Accountant, Assistant Secretary and Inspector respectively. Accused 11 was the agent of the Nagapattinam branch, while accused 12 was an ordinary clerk. Accused 13 was the agent at Madras from 1945 after having been in employ since 1937. Accused 14 is the son of the Managing Director (accused 2) and after enrolment as an advocate is said to have been appointed agent of the Mathural branch. Accused 15 joind the bank in 1943 as a clerk and from 1946 was a branch agent. Accused 16 is the elder brother of accused 2. He was director from 1937 to 1940. Accused 17 is the brother of accused 2 and has no official connection with the bank. Accused 18 is the nephew of accused 2. He was director till 1940. Accused 22 to 28 are all bank constituents of long standing who were given substantial overdraft facilities.

4. On 9-12-1946 the Reserve Bank wrote a confidential letter to the Secretary of the Hanuman Bank inviting attention to S. 42 (8)(a), Reserve bank Act, which required an application for registration as a schedule bank to be made as the previous balance-sheet disclosed an authorized capital which exceeded five lakhs. It is alleged that in December 1949 and January 1947 the officials of the bank desperately resorted to wholesale and fictitious manipulation of accounts to cover up a shortage in assets amounting to Rs. 5,31,704-12-0 and that in fact a false balance-sheet was prepared and passed and signged by accused 1 to 4, 5, 7 and 8 and also by other directors. On 15-7-1947 the bank suspended payment. An application was made in the High Court on 26-7-1947 to wind up the bank and a winding up order was made on 5-11-1947 and Brahmayya & Co. were appointed official liquidators.

A complaint field by accused 1 in August 1947 against accused 2, 7, 8, 9, 10 and 14 was directed to be investigated by the C.I.T. and eventually a chargesheet was drawn up against 28 persons on 29-9-1948, alleging conspiracy commencing from 1938 to commit criminal breach of trust under S. 409, I.P.C. and falsfication of the accounts of the Bank under S. 477 A, I.P.C.

5. The actually trial of the accused commenced in November 1948 in the course of which over 6,000 exhibits were filed and 203 witnesses examined. The trial went on for two years and