IN THE HIGH COURT OF MADRAS
Pandrang Row, J.
Rex
Versus
V. Krishnan
Decided On : 28.08.1939
Criminal Breach of Trust - Entrustment of Property - Sections 221, Contract Act - Summary of the Acts and Sections Referenced: The court discussed the definition of criminal breach of trust and emphasized the importance of entrustment, misappropriation, and dishonest intention as key elements of the offense. The judge highlighted the distinction between civil and criminal liability and cautioned the jury to consider the evidence from a common-sense perspective. The court also addressed the legal rights and responsibilities of an agent under Section 221 of the Contract Act.
Fact of the Case:
The accused was charged with criminal breach of trust for failing to pay sums received from Mrs. Appasami to Father Pinel, as alleged by the prosecution. The court emphasized the importance of determining whether there was an actual entrustment of the money to the accused by Mrs. Appasami.
Finding of the Court:
The court found that the mere retention of money entrusted to a person without misappropriation does not constitute criminal breach of trust. The court also highlighted the distinction between civil and criminal liability, emphasizing that the prosecution must prove the guilt of the accused and that the accused need not prove anything.
Issues: The key issues revolved around whether there was a valid entrustment of the money to the accused by Mrs. Appasami, and whether the accused's actions amounted to criminal breach of trust.
Ratio Decidendi: The court emphasized the importance of establishing entrustment, misappropriation, and dishonest intention as essential elements of criminal breach of trust. The court also highlighted the distinction between civil and criminal liability, emphasizing that the prosecution must prove the guilt of the accused.
Final Decision: The jury unanimously found the accused not guilty on both counts, leading to the acquittal of the accused and the cancellation of his bail bond.
Pandrang Row, J.
1. The charge against the accused is on two counts, and I desire that you should pay particular attention to the wording of the charge. In substance it relates to two sums of Rs. 4000 each paid into the hands of the accused by Mrs. Appasami on the 20th November 1933, and the 2nd March 1934, respectively in discharge of a mortgage for Rs. 8000 executed by her husband, the late Dewan Bahadur Paul Appasami in 1923 in favour of the Foreign Mission at Pondicherry of which Father Pinel who was examined before you was Procurator at all material times. The particular point to which I wish to draw your attention is that the charge itself is to the effect that by receiving these amounts in his capacity as an attorney or agent of the Mission and by failing to pay the same to Father Pinel the accused had committed criminal breach of trust. You will thus see that the charge says that the non-payment to Father Pinel after entrustment by Mrs. Appaswami constitutes criminal breach of trust. I will lay stress once more on it, because the point is very important. The trust that is alleged by the prosecution or the entrustment was by Mrs. Appaswami with the accused. Father Pinel had nothing to do with it. We are dealing not with a breach of trust as between father Pinel and the accused. If the accused has committed any breach of trust vis a vis Father Pinel, that is to say, of anything entrusted to him by Father Pinel, that is not the subject-matter of the charge, and you should not venture to ex-press an opinion on it; in other words, whether the accused has been guilty of a breach of trust as against Father Pinel is not the subject-matter of the charge. The subject-matter of the charge is that he is guilty of a breach of trust reposed in him by Mrs. Appasami when she paid the two amounts of Rs. 4000 each. That is the entrustment in this case. I am afraid a good deal of your time has been taken up with the question whether there was a duty on the part of the accused to pay this amount to Father Pinels account or whether he had a right to retain this money under the lien granted by law in favour of attorneys and agents. It is unfortunate that I have to raise a point which does not seem to have been emphasized in the course of the speeches addressed to you but I must do my duty and tell you that the breach of trust charged in this case is breach of the trust reposed by Mrs. Appasami in the accused. So you must remember that the genesis of the trust was the delivery of this money to the accused by Mrs. Appasami.
2. I will tell you in formal words what the offence of criminal breach of trust is, but that will come a little later on. To enable you to understand the definition properly, I will put to you an ordinary case. Suppose one of you gives your servant a certain sum of money telling him at the same time : "Go and pay this to the shopkeeper so and so." Here there is entrustment of money by the master to the servant with a direction that he should deal with that money in a particular manner, that is to say, pay it to the particular shopkeeper. If he does not ?do so but pockets the money himself, then there is clear violation of the terms of the contract, which may be either express or implied, which he had entered into at the time of taking charge of the money in regard to the discharge of the trust reposed in him. In other words, the money is entrusted to him for the particular purpose of paying it to a particular person in which case if that has not been done and if the money is utilized by the servant for his own use, then you can say he has acted in violation of the contract, express or implied, entered into regarding the way in which the trust is to be discharged. If, on the other hand, a man comes to you whom you know to be a bill collector of so and so and brings a bill to you and you pay the money to him without saying anything or doing anything but merely take his receipt and pay the money, then if there is no con
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.