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1957 Supreme(Mad) 77

MADRAS HIGH COURT
SOMASUNDARAM
In re Marudayya
Versus
.
Criminal Revn. No.397 of 1956 and Cr. R.P. No. 358 of 1956
Decided On : 20 March, 1957

Advocates Appeared:
V.T. Rangaswami Aiyangar for V.L. Ethiraj, S. Mohankumaramangalam, K.V. Sankaran and M. Narayanamuthi, for Petitioner; Public Prosecutor and T. Venkatadri, for the State.

Money obtained by trickery is not considered entrusted to the person who obtained it and does not constitute criminal breach of trust.

Headnote:

CRIMINAL BREACH OF TRUST - S. 408, I. P. C. - CHEATING - S. 415, I. P. C. - MISAPPROPRIATION - S. 403, I. P. C. - DISTINCTION - MONEY OBTAINED BY TRICKERY - NOT ENTRUSTMENT - CONVICTION FOR CHEATING SET ASIDE - CONVICTION FOR MISAPPROPRIATION SUSTAINED.

Fact of the Case:

The petitioner, employed as a cashier in a mill, was convicted of criminal breach of trust for misappropriating wages intended for laborers. He drew money twice for the same set of wages, paying only one set to the laborers and pocketing the other. The misappropriation was discovered during an audit, and the petitioner admitted his liability, executing a promissory note and a guarantee bond. However, he later filed complaints against the mill's management, leading to the filing of a police complaint and a private complaint against him.

Finding of the Court:

The court found that the petitioner had indeed misappropriated the money, as evidenced by his admission and the documents he executed. However, it held that the offense did not amount to criminal breach of trust since the money was obtained by trickery and not entrusted to him. The court also found that the petitioner could not be convicted of cheating due to the prohibition against trying more than three offenses of the same kind together.

Issues: 1. Whether the petitioner's actions constituted criminal breach of trust under S. 408, I. P. C.? 2. Whether the petitioner could be convicted of cheating under S. 415, I. P. C., given that more than three offenses were disclosed?

Ratio Decidendi: 1. The court relied on the Full Bench decision in Emperor v. John McIver, which held that money obtained by trickery cannot be considered entrusted to the person who obtained it. In this case, the petitioner obtained money by presenting false debit vouchers, which constituted cheating. 2. The court noted that although the petitioner could be convicted of cheating under Ss. 236 and 237, Crl. P. C., the prohibition in S. 234, Crl. P. C., against trying more than three offenses of the same kind prevented such a conviction.

Final Decision: The court set aside the conviction for criminal breach of trust under S. 408, I. P. C., and convicted the petitioner for the lesser offense of misappropriation under S. 403, I. P. C., considering factors such as the delay in filing the complaint, the execution of a bond for the misappropriated amount, and the petitioner's long service with the mill.

Judgement

ORDER :- The petitioner in this case has been convicted by the Additional First Class Magistrate, Coimbatore, for an offence under S. 408, I. P. C., and sentenced to one years R. I. and a fine of Rs. 1,000. The said conviction and sentence were confirmed by the Sessions Judge of Coimbatore. It is against the judgment of the Sessions Judge of Coimbatore the present revision has been filed.

2. The facts of the case are these - The petitioner was employed as a cashier in one of the mills in Coimbatore called Kamala Mills. It is alleged that he was so employed almost from the very inception of the Mills, i.e., for over ten years. He was in custody of the cash belonging to the Milk and he had to maintain the rough cash book and prepare the debit vouchers on the authority of which money had to be drawn from the banks by P.W. 8, the managing agent. His duties also included disbursement of the wages to the labourers employed in the Mill every month. The labourers came under two categories, one the permanent employees and the other substitute employees called Badili workers. So far as the wages to the permanent employees were concerned, they were paid once a month. As regards the wages to the Badili workers they were paid once every fortnight. This system was in vogue till about 1950. From 1951 onwards both of them were paid only at the end of each month. The petitioner, taking advantage of the previous system, viz., paying fortnightly to Badili workers, is said to have drawn money payable as wages to the Badili workers for the months of February, March, April, May and September 1951, twice over and paid one set of wages only and appropriated the set to himself. The amount thus drawn twice over and misappropriated by the petitioner is said to be about Rs. 28,000 and odd. This misappropriation is said to have been committed between 1st March 1951 and 31st October of that year. This apparently was not noticed either by the Manager, P.W. 1, who is the son of the managing agent or by P.W. 8, the managing agent, himself presumably due to the extreme confidence enjoyed by the petitioner with both the Manager as well as the managing agent. However, in May 1952, at the time of audit, this was becoming known and at that time the petitioner is said to have admitted the excess drawing of the amount and the misappropriation of the same. He then suddenly disappeared and about 7 or 8 days after his disappearance, he sent a letter, Ex. P-15, dated 16th May 1952, to P.W. 2, who was doing the audit work. This letter was intended to be conveyed to P.W. 8, the managing agent of the Mills. A few days later, the petitioner himself appeared before P.W. 8, who sent for him and at the instance of P.W., 8 he did the work of posting the accounts for the year 1952. Discrepancies were discovered by P.W. 2, the auditor, and a list of these discrepancies was prepared and it is Ex. P-16. This is dated 6th July 1952. The accused admitted that he was responsible for these discrepancies and in acknowledgment also signed Ex. P-16 on 6th July 1952. He, thereafter, executed Ex. P-17, a promissory note, on that date, for Rs. 1,55,511 and odd, being the amount found short as per the discrepancies and for which he admitted his liability. Then, on 14th July 1952, he wrote a letter, Ex. P-18, to P.W. 5, the Supervisor in the Mills, in respect of the promissory note amount due to the Mills and asking for permission to pay the amount in annual instalments of Rs. 10,000. Subsequently, on 22nd July 1952, the brother of the petitioner also gave a guarantee bond, Ex. P-19, for the amount due under the promissory note, Ex. P-17. So, from 16th May 1952 till 22nd July 1952, there was not only a series of admission of liability for the amount found short but also arrangements were being made for the payment of the amount by means of a promissory note which was further secured by the guarantee bond executed by the brother of the petitioner. Subsequently, on account of some other








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