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TMI Blog1983 (11) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 109, Indian Penal Code in respect of criminal breach of trust with regard to several items which have been detailed in the judgment of the High Court. The appellant was also convicted Under Sections 471 and 467 read with Section 109 of the I.P.C. Under the first count (Section 408) the appellant was sentenced to two years R.I. and a fine of ₹ 1000, in default of payment of fine, further six months R.I. Under the second count (Section 471) he was sentenced to imprisonment for one year. The High Court further convicted the appellant Under Section 409 I.P.C. for having committed breach of trust in respect of certain oil engines and sentenced him to 3 years R.I. and a fine of ₹ 1000, in default of payment of fine, imprisonment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cooperative Societies ordered one V. B. Shah to act as special auditor and examine and audit the accounts of the Sangh for the year 1965-66. On the basis of the audit report, the Managing Committee was superseded and an administrator was appointed. Meanwhile the Sangh moved the High Court to obtain a stay order against the appointment of the administrator as a result of which the appointment of the administrator was stayed for some time and the stay was vacated in July 1966. Subsequently, one M. K. Parikh was appointed an administrator. 5. The police after usual investigation submitted chargesheet Under Section 120B, IPC against all the accused for entering into a conspiracy to commit criminal breach of trust. So far as the appellant is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s items (2) to (4) are concerned the case has been fully proved against the appellant. 9. Having gone through the judgment of the High Court we find ourselves unable to accept the argument of Mr. Phadke. The counsel for the appellant rightly argued with great force and vehemence that taking the findings of the High Court ex facie no case of defalcation of Items (2) to (4) has been made out. In our opinion, the contention raised by the counsel for the appellant is well-founded and must prevail. With due respect what the High Court seems to have missed is that in a case like this where there was serious defalcation of the properties of the Sangh, unless the prosecution proved that there was a close cohesion and collusion between all the accu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re fact that the appellant happened to be the Chairman of the Committee would not make him criminally liable in a vicarious sense for items 2 to 4. There is no evidence either direct or circumstantial to show that apart from approving the purchase of fertilisers he knew that the firms from which the fertilisers were purchased did not exist. Similar is the case with the other two items. Indeed, if the chairman was to be made liable then all members of the Committee, viz, Tehsildar and other nominated members, would be equally liable because all of them participated in the deliberations of the meetings of the Committee, a conclusion which has not even been suggested by the prosecution. As chairman of the Sangh the appellant had to deal with a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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