SUPREME COURT OF INDIA
S.M. SIKRI AND P. JAGANMOHAN REDDY, JJ.
Kantilal Chandulal Mehta, Appellant
Versus
State of Maharashtra and another, Respondents.
Criminal Appeal No. 260 of 1968, D/- 10-10-1969.
Criminal Procedure Code, 1973 - Sections 423 and 535 - Agreement - Misappropriation of moneys - Appellant was one of partners of a firm along with his brother. By and under an agreement called Packing Credit Agreement entered into between firm and second respondent Union Bank of India, the appellant obtained 75 per cent of value of groundnut extraction to be purchased by firm and exported to United Kingdom and other European countries from Bank on condition that immediately after purchase of goods and its export the shipping documents would be sent to it - Whether there was or was not a prima facie case of entrustment of goods - Held, There was in fact no retrial directed, but only an opportunity was given to accused to safeguard himself against any prejudice by giving him an opportunity to recall any witnesses and adduce any evidence on his behalf. Appellant has also understood order not as a retrial is clear from ground (f) of the Special Leave Petition filed before us. It is therefore not necessary for us to examine scope and extent of the power or circumstances in which a retrial should be ordered - If no objection could be taken to the trial Court in framing the original charge it is difficult to see how an objection can be taken at this stage to framing of an alternate charge on the same allegation in the complaint - Appeal dismissed.
Judgment
P. JAGANMOHAN REDDY, J.:- This appeal is by special leave against the order of the High Court of Bombay dated the 18th October, 1968, allowing the oral application of the learned advocate for the respondent for the amendment of the charge in terms of the draft submitted by him and directing the Chief Presidency Magistrate to assign the case to some Court for holding a new trial in respect of the amended charge. This order was made in the following circumstances:
The appellant was one of the partners of a firm Chandulal Kanji & Co. along with his brother Chandulal K. Mehta. By and under an agreement called the Packing Credit Agreement entered into between the firm and the second respondent, the Union Bank of India, the appellant obtained 75 per cent of the value of groundnut extraction to be purchased by the firm and exported to the United Kingdom and other European countries from the Bank on the condition that immediately after the purchase of the goods and its export the shipping documents would be sent to it. This arrangement required the firm while sending a letter requesting the credit to be given to it, to enclose the contract of sale of groundnut extraction entered into between it and the foreign firm. On receipt of this letter and the agreement the bank would advance 75 per cent of the money required to purchase the groundnut extraction. After the amount was received, goods had to be purchased from the mills and shipped for export and the shipping documents sent to the Bank within a month from the date of such advance. It appears that under this agreement the second respondent Bank and advanced under the Cash Credit Agreement and the Packing Credit Agreement nearly rupees 4 lacs on several dates the first of which was March 27, 1965, which was for the purchase of 200 tons of groundnut extraction and with which we are now concerned. The Cash Credit Agreement, the Packing Credit Agreement and the letter requesting the advance of Rs. 60,000/- were all signed on the same date. The advance, as requested, was also made on the 27th March, 1965. Goods were purchased but could not be shipped within a month from the date of the advance because, as stated in the letter of the appellant dated the 27th April, due to change in the schedule of departure of the ships it was not possible to export the goods on the 24th or 25th March as originally planned as such he undertook to ship the goods within a week thereafter. On the same day, the appellant further sent a declaration that the firm had purchased 300 tons from the advance made to it and is holding the stock. On the 6th May the Bank requested the firm to forward the shipping documents in respect of the seven agreements of which one related to the agreement of 27th March. When the shipping documents were not sent to it in conformity with the several documents the bank made certain enquiries from its branch in Veraval, a port in Kathiawar and received certain information as to the dates on which the various quantities were exported and the ships in which they were sent. As the shipping documents were not sent to the second respondent as required under the agreements entered into with it, it again called on the firm on the 24th May to hand over the documents to it in respect of the groundnut exported. When this request was not complied with, it filed a complaint against the appellant who alone was the active partner of the firm, in the Court of the Presidency Magistrate on the 26th May, alleging against him misappropriation of moneys and goods contrary to the agreement. In support of this complaint the manager of the Bank gave evidence and at the stage of framing the charge the Magistrate heard the lawyers for both sides. He framed only one charge against the accused for misappropriation of the moneys under Section 406, Indian Penal Code advanced by the Bank in respect of which the Magistrate ultimately convicted him on 31st August, 1966 and sentenced him to 18 months rigorous
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