Judgment :-

S.B. Sinha, J.

Interpretation and/or application of the provisions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, (hereinafter, for the sake of brevity, referred to as `the Special Act) is involved herein.

It arises out of an order dated 25th July, 2008 passed by the learned Judge, Special Court at Mumbai in Misc. Petition No.41 of 1999.

HISTORICAL BACKGROUND

The history as well as the purpose and object for which the Special Act was enacted, in view of the several decisions rendered by this Court, is now well-settled. The Reserve Bank of India in course of an investigation conducted by it, had inter alia opined that Harshad Mehta (since deceased), alongwith his other associates had diverted a huge amount of public funds belonging to Public Sector Banks and Financial Institutions for short term investments in the securities market.

An Inquiry Committee was thereafter constituted under the Chairmanship of Shri Janakiraman. The said Committee in its report had noticed a large number of gross malpractices and irregularities in transactions of both Government and other securities, pursuant whereto and in furtherance whereof the Spe