( 1 ) ON 9-12-1981, Shri Surinder Arora, an ex- employee of M/s. Associated Traders and Engineering Limited, 20/1, Asaf Ali Road, New Delhi, filed a complaint in the court of the concerned Metropolitan Magistrate, for initiation of proceeding under Sections 406 and 418 of the IPC, against the Managing Director, three Directors, the Deputy General Manager (Finance), an accountant and Shri P. K. Seth, a partner of the firm of Chartered Accountants of the Company.

( 2 ) THE case of the petitioner as disclosed in the complaint is that accused Nos. 1 to 5 created an approved Gratuity Fund and named it as "associated Traders and Engineers Employees Gratuity Fund" and in compliance with the provisions of Section 40a (7) of the IT Act opened an account with the Andhra Bank, Asafali Road, New Delhi. The accused Nos. 1 to 6, however, never deposited the amount of the fund in the Post Office Saving. Bank Account or as prescribed under Rule 67 (1) and (2) of the IT Rules. . The accused, thus knowingly and intentionally contravened the terms of the irrevocable trust. It is his further case that the gratuity amount deposited in the approved gratuity fund belong to the employees