On April 30, 1952 the respondent No.
P.C. for the enhancement of the sentences passed on the respondents.
The term of the managing agency was renewed in 1943 and AECO company tinued to be managing agents until the VESCO was taken over by the Government in 1952.
In that book payments which used to be made by respondent No.
I to maintain a private numbere book.
It was also his duty to have the accounts of VESCO audited by the auditors elected by the general body and to produce before the auditors the relevant accounts, vouchers, bank statements and so on.
Till the year 1945 Messrs C. P. Rao Co., a firm of Chartered Accountants were the auditors of VESCO but after the respondent No.
I initiated was opening a heading in the ledger called advance purchase of materials.
40/ p.m. Eventually he became the Head Clerk therein.
one B. Rajan was elected Auditor number only for VESCO but for all the other four companycerns, including AECO.
I and was thus beholden to him.
P. 234 said that the report seemed to be a genuine one.
I companytinued to be the Secretary of VESCO and resident representative of the Managing Agents throughout the period of companyspiracy.
However, the meeting was postponed and eventually held on December 9, 1951.
Similarly K. V. Gopala Raju was transferred from the post of Stores Clerk to the general department and K.S.N. Murty, the discharged accused, was appointed Stores Clerk in his place.
810 of 1957.
The High Court allowed the two appeals, acquitted the respondents and dismissed the application for revision preferred by the State.
2 was asked by the respondent No.
42,000/ .
These amounts also used to be numbered in the private numbere book and entered by safe in the Handover Book.
Appeal by special leave from the judgment and order dated January 30, 1960 of the Andhra Pradesh High Court in Criminal Appeals Nos.
The respondent No.
It is said that this person has number received much education and knows only bow to sign his name in English.
On the basis of the entries in the Handover Book the final accounts were written up.
The knowledge of the Financial position of VESCO obtained by them used to be derived essentially from the respondent No.
Another thing which the respondent No.
He pressed his claim for appointment as Secretary of VESCO and representative of the Managing Agents at Visakhapatnam and R .H.G. Raju appointed him to that post.
One significant fact, however, which occurred prior to 1946 is referred to by the prosecution.
The Directors of VESCO thereafter authorised K. S. Dutt, one of the Directors to lodge a companyplaint with the police which he accordingly lodged on May 19, 1952.
The latter accordingly made a companyfession on November 15, 1954 and on November 17, 1954 the Additional District Magistrate Independent granted him pardon and that is how he came to be examined as a witness in this case.
2,38,000/ which were shown as having been paid to the Andhra Power System had actually number been paid.
277 and 278 of 1957 and Criminal Revision Case No.
When the respondent No.
It is the prosecution case that as Secretary of VESCO and the resident representative of the Managing Agents, the respondent No.
90,000/ for this period.
K.N.G. Raju took till towards the end of 1947 and died at Madras in April, 1948.
The respondents preferred appeals before the High Court challenging their companyvictions and sentences.
S.R. Chari, K. R. Choudhry and P.D. Menon, for the appellant.
I from time to time to Manchili or wherever be might be would have numberwork to do.
P. 235 is a printed companyy .
As Secretary of VESCO it was his duty to companyvene the meetings of the Board of Directors, to present before them the periodical statement of receipts and expenditure of VESCO, to companyvene meetings of the General Body, to prepare the Managing Agents report and the Directors report as also to see to the presentation of auditors report and the statement of accounts.
On May 13, 1954 a chargesheet was filed against the two respondents as well as Murti and the approver Ramana.
He was assured that by companysenting to become the Managing Director be would number be required to discharge onerous duties and that the respondent No.
The respondent No.
by cheques.
According to the prosecution the respondent No.
Bhimasankaran and R. Thiagarajan for respondent No.
2 Laksbminarayana Rao was appointed the Cashier.
The explanations of the Managing Agents and the Directors of VESCO with respect to the items mentioned in the orders of the Board used also to be placed by him before the shareholders.
3,40,000/ .
CRIMINAL APPELLATE JURISDICTION Criminal Appeal No.
April 23.
The judgment of the Court was delivered by MUDHOLKAR J. The respondent No.
The prosecution case in so far as it is material for the decision of this appeal is as follows In the year 1929 the Andhra Engineering Co., which was originally a partnership firm formed by one D.L.N. Raju was companyverted into a private limited, companypany with its headquarters at Visakhapatnam.
The respondent No.
In the meantime on November 29, 1951 there was a meeting of the General Body at which the accounts were, among other things, to be companysidered.
This amount was posted in VESCOs Cash Handover Book as by safe indicating that this amount was kept in the safe, though in fact it was number.
I was attending to the day to day affairs of VESCO, which included the receiving of all sums of money due to VESCO, spending money for the purpose of VESCO attending to the appointment, supervision and companytrol of the staff of VESCO, purchasing materials required for the purpose of VESCO and supervising over the accounts of VESCO.
OD September 13, 1954 Ramana offered to make a full Confession to the Additional District Magistrate Independent who was empowered to grant pardon under s. 337 of i he Code of Criminal Procedure.
G. Krishna Aiyar after his appointment in January, 1952, made close enquiry and submitted an interim report.
I was a Director.
There were numbercomplaints about the management of the affairs of VESCO or the AECO till the end of 1946 or the beginning of 1947.
After the death of R.K.N.G. Raju, it was discovered that the AECO was indebted to many companycerns which were under its managing agency, the liability being shown either as that of AECO or that of R.K.N.G. Raju personally.
There was a companysiderable uproar at that meeting because the respondent No.
Again, the VESCO was shown as indebted to the Andhra Cement, to the extent of Rs.
According to the prosecution the respondent No.
1, Ganeswara Rao was also an old employee of AECO, having been appointed a stenotypist in the year 1923 on an initial salary of Rs.
The companyspiracy is said to have been hatched in the year 1947 and falsification of accounts and misappropriation of funds of VESCO went on till the end of the accounting year.
That report showed that during the period 1948 49 Rs.
The VESCO used to receive large amounts of money from high tension power companysumers such as the railways, K. G. Hospital, the Port Administration, the Andhra University etc.,
I opened four personal accounts in different banks, including the Imperial Bank of India as the State Bank then was .
The respondent No.
1 on being asked to explain said that he would give his explanation to the Managing Director.
The approver who was originally an Accounts clerk with the AECO was, it may be mentioned, appointed a cashier in VESCO in 1946 at the instance of the respondent No.
The Interim Report showed that there was a shortage of about Rs.
Various sentences were passed against them by the Additional Sessions judge, Visakhapatnam, who presided over the companyrt.
That was also the feeling of a number of shareholders who wanted to see the original but one Dutt who was Chairman of the meeting after seeing Ex.
He was thus all important with respect to the every day affairs of VESCO.
I and seized a number of papers.
I wrote to the Managing Director admitting his responsibility and agreed to make good the amounts found short or such other amounts as would be found short up to the end of March, 1952.
R. Mahalingier, for respondent No.
He, however, directed Ramana to make his companyfession before a SubMagistrate.
The accounts maintained by the VESCO used to be explained by him number only to the Directors but also to the shareholders.
He was given time for doing so but he failed to pay it.
I and some of his friends were in search of a rich and substantial man who would be amenable to them to fill the post of Managing Director of AECO.
39 of 1961.
I took both the approver and Lakshminarayana Rao in his companyfidence as also some other persons known and unknown for carrying out his nefarious purpose, namely, the misappropriation of the funds of VESCO during the subsistence of AECOs managing agency of VESCO.
This person was Auditor for Greenlands Hotel at Visakhapatnam, of which the respondent No.
He agreed and was elected Managing Director of AECO in the middle of 1948.
I had to issue a personal cheque on any of these Banks he used to ask the second respondent to send an equivalent amount to the Bank companycerned for being credited to his account.
I became Secretary.
I secured the promotion of the approver K.V. Ramana, who was originally Accounts Clerk to the post of Senior Accountant.
Upon this understanding he accepted the position offered to him.
Amounts which had been misappropriated used to be posted therein though in fact numberorders were placed for any material.
According to the prosecution the report is a forged document.
On the next day the police placed an armed guard around the office of the respondent No.
His dual capacity enabled the respondent No.
1 produced the auditors report Ex.
136 of the Constitution.
1, even after his appointment on two posts companynected with VESCO, companytinued to work with the AECO also whose business had by then been companyfined only to that of Managing Agents of the four companypanies floated by D.L.N. Raju.
I would look to all the affairs of VESCO.
On February 12, 1952 the respondent No.
33,271 10 0 shown as paid to the Andhra Power System were in fact number paid.
In fact in April, 1952 the Collector attached VESCO properties for realising this amount.
50,000/ to the Andhra Power System towards the sum due to it from VESCO and had promised to pay the balance shortly thereafter.
I was tried before the Court of Sessions, Visakhapatnam for offences under s. 120 B, Indian Penal Code, s. 409, s. 477 A and s. 471 read with s. 467, I.P.C. while respondent No.
He was later promoted as Senior Accountant and in his place the respondent No.
I alone was companyvicted of the other two offences.
The State of Andhra Pradesh has companye up before this Court in appeal by obtaining special leave under Art.
Further scrutiny of the accounts was being carried out by Krishna Aiyar and in his subsequent report he pointed out that Rs.
409 read with s. 109, 477 A and 471 read with s. 467, I.P.C. Each of the respondents was companyvicted of the first two offences, but the respondent No.
2 was tried for an offence under s. 120 B and for offences under ss.
On that date the respondent No.
But domestic companysumers usually paid their bills in cash to the bill companylectors who used to hand over their companylections to the respondent No.
The respondent No.
The State on the other hand preferred an application for revision under s. 439, Cr.
p. 234 of which Ex.
The respondent No.
All this is number disputed.
The respondent No.
This amount was, however, paid by the AECO from the funds of VESCO.
Later, however, Murty was also got transferred to the general section and replaced by P. W. 18, Srinivasa Rao originally a stores boy.
The AECO was appointed Managing Agent for each of these companyporations under separate agreements.
2 on the basis of slips issued by the respondent No.
The respondent No.
I to earn the companyfidence number only of the Directors of AECO but also of those of VESCO.
1, by selling some of his property, himself paid Rs.
Some time later other industrial companycerns, the Andhra Cements Ltd., Vi jayawada and the East Coast Ceremics, Rajahmurthy were started apparently by Raju himself and the AECO was appointed the Managing Agent of each of these companycerns.
He was also told that apart from signing important papers which may be sent to him by the respondent No.
Eventually their choice fell on G. V. Subba Raju, P. W. 25, a resident of Manchili, who held a large number of shares in the AECO and who was, besides, related to R.K.N.G. Raju by marriage.
