Home Case Index All Cases Companies Law Companies Law + SC Companies Law - 1962 (4) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1962 (4) TMI 28 - SUPREME COURTConviction under section 120B read with section 409, Indian Penal Code and section 477A, Indian Penal Code - Held that:- The vouchers were falsified with one intention only and that was to let it go unnoticed that the Union Agencies had got funds from the Insurance Company. If they had shown the money received and paid to Bhagwati Trading Company, it was possible to trace the money back to the Insurance Company through Bhagwati Trading Company which received the money from the Insurance Company through crossed cheques as well. Whoever would have tried to find out the source of the money would have been deceived by the entries. The Union Agencies made wrongful gain from the diversion of the Insurance Company's funds to it through Bhagwati Trading Company and the insurance Company suffered loss of funds. The false entries were made to cover up the diversion of funds and were thus to conceal and, therefore, to further the dishonest act already committed. In the present case, introduction of Bhagwati Trading Company in the transactions was the first step to carry out deception about the actual payment of money out of the funds of the Insurance Company to the Union Agencies. The second step of suppressing the name of Bhagwati Trading Company in the papers of the Union Agencies, Delhi, made it more difficult to trace the passing of the money of the Insurance Company to the Union Agencies and, therefore, the falsification of the journal vouchers related back to the original diversion of the Insurance Company's moneys to the Union Agencies and was with a view to deceive any such person in future who will be tracing the source of the money received by the Union Agencies. We are therefore of opinion that Gurha has been rightly held to have been in the conspiracy and to have abetted the making of the false journal vouchers.In view of the above, we are of opinion that the appellants have been rightly convicted of the offences charged.
|