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IN THE HIGH COURT OF ORISSA
Misra, J.
M.V. SURYANARAYANA - APPELLANT
Versus
THE STATE - RESPONDENT
Criminal Appeal No. 153 of 1963
Decided On : 15-12-1961
CRIMINAL BREACH OF TRUST - SECTION 408, INDIAN PENAL CODE - FALSE ACCOUNTING - SECTION 477-A, INDIAN PENAL CODE - INTERPRETATION AND APPLICATION - FACTUAL CIRCUMSTANCES - EVIDENCE - INFERENCE OF MISAPPROPRIATION - BURDEN OF PROOF - DEFENCE VERSION - ANALYSIS AND REJECTION - CONVICTION UPHELD.
Fact of the Case:
The appellant, the Secretary of a cooperative marketing syndicate, was convicted of criminal breach of trust and false accounting for withdrawing Rs. 23,000 from the syndicate's coffers and failing to account for it. He claimed to have purchased a bank draft for the amount and sent it to the clearing agent for the purchase of cloth, but the draft was returned. The prosecution alleged that the money was misappropriated.
Finding of the Court:
The court found that the appellant's explanation was not credible and that the evidence did not support his claim that he had purchased the bank draft and sent it to the clearing agent. The court also noted that the appellant had failed to produce any documentary evidence to support his defense, such as a receipt for the purchase of the draft or a record of the registered letter allegedly sent to the clearing agent.
Issues: 1. Whether the appellant had misappropriated the Rs. 23,000 withdrawn from the syndicate's coffers. 2. Whether the appellant's explanation that he had purchased a bank draft and sent it to the clearing agent was credible.
Ratio Decidendi: The court held that the prosecution had proved beyond reasonable doubt that the appellant had misappropriated the money. The court relied on the following factors: (1) the appellant's failure to account for the money; (2) the absence of any documentary evidence to support his defense; (3) the appellant's subsequent conduct in failing to take any action to recover the money or adjust the amount in the accounts of the syndicate; and (4) the appellant's false explanation to the auditor.
Final Decision: The court dismissed the appeal and upheld the appellant's conviction and sentence.
JUDGMENT :
Misra, J. - The Appellant has been convicted u/s 408, Indian Penal Code and sentenced to undergo rigorous imprisonment for 5 years and to pay a fine of Rs. 5000- or in default to undergo R.I. for 6 months more. He has also been convicted u/s 477-A, Indian Penal Code and sentenced to undergo R.I. for one year, both the sentences to run concurrently.
Prosecution case is that the accused was Secretary of the Central Co-operative Marketing and Textile Syndicate at Berhampur (hereinafter referred to as the Syndicate) in the year 1949. Government of Orissa used to allot quotas of cloth to various importers of Orissa including the Syndicate. The Syndicate used to take delivery of the quotas from the Clearing Agent L.K. Poddar of Rajnandigaon, who was the sole selling agent of Bengal Nagpur Cotton Mills Limited for Madhya Pradesh, Orissa and Bihar. On 17-6-1962 the accused gave a certificate of payment (ext. 16) mentioning therein that an amount of Rs. 23,000- had been paid to Lalit Kumar Poddar being advance towards purchase of cloth of 230 bales as per Government telegram. This telegram is ext. H dated 11-6-1952 issued by the Supply Department to L.K. Poddar mentioning therein that the extra 230 bales would be supplied to any of the importers of Orissa who are willing to accept extra quotas. A copy of this telegram was sent to the Syndicate. Interested importers were advised to contact the Clearing Agent immediately for the supply of extra quota, if any. On 17-6-1952 entries were made in Rough Cash Book (ext. 14) and Fair Cash Book (ext. 15) by the office of the Syndicate showing payment of advance of Rs. 23,000- to L.K. Poddar. In response to the telegram (ext. H), Poddar sent a reply to the following effect (ext. H1) dated 12-6-1952:
We note that for the remaining extra 230 bales you wish us to ascertain from all those 19 importers whether they are willing to accept extra quota. Since to ascertain as such, it will take at least 10 to 15 days by the time we receive reply from them, we have sent you the telegram for your further instruction. It is definite that B.N.C. Mills shall not wait until then and quota will lapse.
The prosecution case is that Rs. 23,000- drawn in cash was not remitted to L.K. Poddar and in fact L.K. Poddar did not supply 230 bales to the Syndicate and the entire amount was misappropriated.
2. The accused in his statement u/s 342, Criminal Procedure Code has given an elaborate version of his defence. His case is that in june 1952, on the application of the Syndicate: Government reallotted 230 bales of Rajnandigaon Mills. One Puranmal Agarwala of Cuttack was purchasing heavy stocks of the Syndicate with the approval of the Government and he was dealing on behalf of a large number of dearer of Cuttack. He came to know of this allotment. With, a view to purchase these 230 bales, he approached the accused with a Bank Draft for Rs. 23,000- in favour of L.K. Poddar. The accused purchased the Draft from him on payment of Rs. 23,000- in cash to save delay and to save bank charges. The Bank Draft was sent to L.K. Poddar by registered post with a forwarding letter accompanying it with a request to arrange despatch of one bales, the value of which would be about 2 lakhs of rupees. L.K. Poddar returned the Draft and did not despatch 30 bales of cloth. Sometimes in the month of June, the accused was absent from the head-quarters as he was away at Calcutta and Bombay. Later on (the exact date not given) Puranmal Agarwala intimated him that he had taken back the Draft and this amount of Rs. 23,000- would be adjusted towards his account. By June he had to his credit and amount of Rs. 29,000- and odd in the Bank. Puranmal promised to give necessary instructions to the dealers for adjustment. The accused completely lost sight this transaction and took no further action over the matter. By the end of June, 1952, the Syndicate had heavy stocks lying at the Railway Station which they could not release as they had no money an
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