Judgment :-

Chelameswar, J.

1. These statutory appeals are filed under Section 10 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act 27 of 1992 (hereinafter referred to as ‘the Special Court Act’). An appeal both on questions of fact and law under the above-mentioned provision is provided directly to this Court from any “judgment, decree, sentence or order” of a Special Court established under Section 5 of the above-mentioned Act.

2. The Special Court Act was made in the aftermath of a scandal in the stock market in the year 1991-1992 when “large scale irregularities and malpractices were noticed in both the Government and other securities, indulged in by some brokers in collusion with the employees of various banks and financial institutions”.[In the course of the investigations by the Reserve Bank of India, large scale irregularities and malpractices were noticed in transactions in both the Government and other securities, indulged in by some brokers in collusion with the employees of various bonds and financial institutions. The said irregularities and malpractices led to the diversion of funds from banks and financial institutions to the individual