Judgment

SUBBA RAO, J. : This appeal by special leave filed by the State of Bombay is directed against the judgment of the High Court of Judicature at Bombay setting aside the convictions of the respondents and the sentences passed on them by the Sessions Court for Greater Bombay, and acquitting them of the offences with which they were charged.

2. A private limited company called the Industrial Commercial Trust Limited was formed on April 1, 1943. The principal shareholders in that company were the first accused and one Sir Chinubhai Madhavlal. During the course of that year i.e., 1943, a firm called the Asian Air Associates (hereinafter called "the Company") was established as a subsidiary concern of the Industrial Commercial Trust Limited. Accused No. 1 and Sir Chinubhai Madhavlal were partners of the Company, and accused No. 2 was its General Secretary. The factory and the head office of the Company were at different places. The main work of the Company was the manufacture and repair of Royal Air Force equipment. In or about October 1943 the Company entered into a contract with Messrs. Ramdas and Sons for the purchase of certain machinery and tools at an agreed price of Rs. 3,05,