The petitioner, one P.V. Govindan Nair alias P.V.G. Nair, was tried in Sessions Case No. 37 of 1965 in the Court of the Assistant Sessions Judge, Tellicherry, for the offences under sections 406, 420 and 467 of the Indian Penal Code. The learned Assistant Sessions Judge found that the petitioner was guilty of the offences under sections 406 and 467 Indian Penal Code; and acquitted the petitioner of the offence under section 420 of the Indian Penal Code, giving him the benefit of doubt. The petitioner was sentenced to undergo rigorous imprisonment for three years for each offence; and the sentences were directed to run concurrently. The petitioner filed an appeal before the Sessions Judge of Tellicherry as Criminal Appeal No. 69 of 1965. The learned Sessions Judge, while accepting the findings arrived at by the trial Court, held that the petitioner was guilty of the offence under section 420, Indian Penal Code and not under section 406, Indian Penal Code. Accordingly, he altered the finding of the trial Court and maintained the sentence under section 423(1)(b) of the Code of Criminal Procedure, as regards the charges against the petitioner under sections 406 and 420, Indian Penal Code. The conviction of he petitioner under section 467, Indian Penal Code, was upheld. Accordingly, the appeal was dismissed. The petitioner has, therefore, come before this Court in revision.

The nature of the case demands that the facts should be set out at some length. There is an organisation called the Co-operative for American Relief everywhere, shortly known as ‘CARE’, working in India with its headquarters in Delhi and branches in various States. The object of this organisations to distribute gift articles furnished by the American people to the needy and poor in India. The distribution is being done in collaboration with the Regional Directors of Food Supplies in the various States. The ‘CARE’ has a branch office in Madras, of which one R. Sreenivasan, who is P.W. 2 in this case, was the Manager at all relevant times. He was formerly a stenographer in the General Hospital, Madras. The petitioner was than a representative of the Life Insurance Corporation of India in Madras. He happened to be treated in the Madras General Hospital, while P.W. 2 was working as a stenographer there. During that time, the petitioner and P.W. 2 became acquainted. In August, 1960, the petitioner visited the office of the ‘CARE’ in Madras and represented to P.W. 2 that he had taken up charge as Honorary Secretary of the Kerala Sarvodaya Samithi in Thiruvangad, Tellicherry, (hereinafter referred to as the Samithi), which was said to be an Organisation founded for doing social service. He made a request to P.W. 2 for arranging the supply of the gift articles from the ‘CARE’ to the Samithi, for distribution amongst the poor people of the area, which was being served by the Samithi. The ‘CARE’ distributes these articles usually through such social organisation; and before it entrusts the articles for distribution, it takes an assurance from the person to whom the articles are to be entrusted for distribution. This is taken in a set form. Exhibit P-2 dated 16th August, 1960, is the form said to have been furnished by the petitioner as Honorary Secretary of the Samithi, undertaking to distribute the articles to be entrusted to him on behalf of the Samithi as per the assurances contained therein. P.W. 2, on receipt of this form, wrote to his central office in Delhi, recommending the supply of the articles to the Samithi for distribution. Exhibit P-3, dated 8th November, 1960, is the letter written by P.W. 2 in this respect. On the basis of this recommendation, the ‘CARE’ in Delhi included the name of the Samithi amongst its list of distributors.

In November, 1960, the ‘CARE’ got a consignment of milk powder at Madras; and it allotted 200 cartons out of this consignment to the Samithi. Accordingly, P.W. 2 arranged to despatch 200 cartons to the Samithi, which was do