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2009 (8) TMI 694 - SC - Companies LawJurisdiction of Special Court - Whether having regard to the peculiar facts and circumstances of the case the Special Courts so constituted had jurisdiction to try this matter? Whether the charges of the criminal conspiracy have been proved or not? Whether the said cheque had really been received by the Funds department on 7-7-1991? Whether the transfer has been made, or the misappropriation or breach of trust has been committed, within or without India? Held that:- There is no doubt that the offences relating to criminal breach of trust stands established against the accused. They were the officers in the Funds Department of Andhra Bank. As the same has been done dishonestly to cause wrongful gain to A3 and in the process wrongful loss has been caused to the Bank. The instruments based on which the funds of Andhra Bank were transferred to the account of A3 were not physically available with Andhra Bank at the time the accused persons authorized the transfer of the funds of Andhra Bank to the account of A3. Thus it must be noted in this respect that Banking norms and established practices and procedures would contain directions of law prescribing the mode in which the trust is to be discharged. The expression direction of law in the context of sections 405 and 409 would include not only legislations pure and simple but also directions, instruments and circulars issued by an authority entitled therefor. Thus the prosecution has sufficiently been able to prove the involvement of A1, A2 and A4 as regards the offence of criminal breach of trust. However in the present case the principal offender, i.e., A1, A2 and A4 have been held guilty of a ‘criminal breach of trust’ therefore the conviction of A3 would be even more clearly established from the facts and circumstances of the present case. Thus affirm the sentence imposed by the learned Special Judge with regard to the offence under the Prevention of Corruption Act.
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