9911796707
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Issues:
Conviction under sections 409, 467, and 471 of the Penal Code, misappropriation of funds, fabrication of promissory notes, criminal breach of trust, fines and sentencing, liability for repayment. Analysis: The appellant, who was the secretary of a bank, was convicted under sections 409, 467, and 471 of the Penal Code for misappropriating funds and fabricating promissory notes. The appellant was sentenced to four years of rigorous imprisonment for each offence, with the sentences running concurrently. Additionally, a fine of Rs. 2,000 was imposed, with rigorous imprisonment for one year in default. The appellant was in charge of the cash and securities of the bank, and discrepancies arose when a fixed deposit matured, but the appellant failed to make the payment to the depositor. Investigations revealed that the funds were utilized for fictitious loans to non-existent individuals, and the appellant was charged with criminal breach of trust and forgery. The appellant denied the offences, claiming that the borrowers were introduced to him by the bank's president, and loan applications and promissory notes were prepared under the president's directions. However, evidence from witnesses, including railway officials and bank employees, proved that the borrowers were fictitious and that the appellant had fabricated the loan transactions. The court found the appellant guilty of misappropriation and fabrication of documents to cover up the fraud, leading to the confirmation of the conviction and sentences under sections 409, 467, and 471 of the Penal Code. The judgment also addressed the issue of the fine imposed on the appellant. While the fine was initially ordered to be paid to a specific individual, it was ruled that since the misappropriated amount belonged to the bank, the fine, if recovered, should benefit all creditors through the liquidator. Therefore, the order for payment to the individual was set aside, and any fine levied would be paid to the liquidator for the benefit of all creditors, ensuring fair distribution of recovered funds among the bank's stakeholders.
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