Facts of the case
- The appellant was liable to pay the agreed price of Rs.83,00,000/- for 20000 shares which were not returned to the respondent-bank.
- The appellant had admitted the liability and issued cheques to meet it but the cheques were not honored.
- The defence of the appellant was that such liability was only a civil liability without any criminal intention.
- The district court held that it dishonest misappropriation of those shares on the part of the accused is writ large. Many times the cheque was issued and dishonouredeverytime. This shows the clear intention of the accused.
- The appellant was convicted for offence under Section 409 of the Indian Penal Code.
Judgment
The Honāble Supreme Court stated that, āwe found good chances of a settlement between the parties if a substantial amount could be paid to the bank by the appellant so as to virtually meet the entire decretal liability within a reasonable period of time. On behalf of the appellant a strong plea was made for working out such settlement but with a further plea that in the larger interest of justice and considering his precarious financial condition, the rate of interest may be reduced to a reasonable rate such as 12% per annum.On our persuasion, learned counsel for the respondent-Bank obtained instructions and conveyed that the respondent-bank was willing for such a settlement.ā
The appeal was disposed of with the settlement.
BY: ANKIT RAJPUT