1982 (3) TMI 260 - HC - Indian Laws

Summary

Issues:
1. Revision of order of dismissal of complaint under S. 408 of the Penal Code.
2. Discrepancy in summoning under S. 409 instead of S. 408.
3. Allegation of misappropriation of funds by the Manager of a bank.
4. Legal relationship between a bank and its customer.
5. Failure to issue notice to the accused in a revision petition.

Analysis:
1. The judgment pertains to a petition against the order of the Additional Sessions Judge, where the accused-petitioner, a bank manager, was held liable to be summoned for an offense under S. 408 of the Penal Code. The Additional Sessions Judge found that the accused had misappropriated a deposited amount, leading to the revision of the order of dismissal of the complaint.
2. A discrepancy arose as the Additional Sessions Judge seemed to intend to summon the petitioner under S. 409 instead of S. 408 of the Penal Code. The complainant's case revolved around breach of trust by the bank manager in his capacity as a banker, rather than as a trustee under S. 408.
3. The complainant alleged that the bank manager misappropriated a sum deposited in the bank, which was not returned upon maturity of the fixed deposit. The complainant's testimony and supporting evidence suggested that the manager acted dishonestly by appropriating the funds towards a loan account without consent.
4. The judgment highlighted the legal relationship between a bank and its customer as that of a creditor and debtor, emphasizing that the bank does not act as a trustee for deposited funds. The refusal to repay deposited amounts does not necessarily constitute misappropriation, as the bank holds the funds as its own with an obligation to repay upon request or maturity.
5. Lastly, the judgment noted a procedural error where the accused was not issued a notice in the revision petition, contrary to the requirement under the Criminal Procedure Code. The failure to provide an opportunity to be heard to the accused was deemed a violation of legal provisions, necessitating adherence to due process in such proceedings.