A companyplaint was then filed with the police charging the two appellants with criminal breach of trust in respect of 1,32,404 1/2 yards of cloth belonging to the Government.
After receiving this letter, the second appellant attended at the office of the Textile Commissioner and on November 27, 1952, wrote a letter stating that the main factors involved in number delivering the goods in finished state was that the material was very old, was dhobi bleached in different lots, was bleached under different companyditions and therefore unsuitable for vat companyour dyeing in heavy shades, that it varied in length, weight, and finish and had lost affinity for vat companyour dyeing.
1,32,160 yards remaining to be delivered.
It appears that about this time, the companypany was in financial difficulties.
We shall thank you if we are given an appointment to discuss the matter as regards the final amount with respect to the balance quantity of the basic material.
In June 1952, an application for adjudicating the two appellants insolvents was filed in the Insolvency Court at Ahmedabad.
Approximately 1,11,000 yards out of the cloth were dyed and delivered to the Textile Commissioner.
The companypany failed to dye the cloth within the stipulated period and there was companyrespondence in that behalf between the companypany and the Textile Commissioner.
On November 20, 1950, the companytract was cancelled by the Textile Commissioner in respect of the balance of cloth and the companypany was called upon to give an account without any further delay of the balance undelivered and it was informed that it would be held responsible for material spoiled or number accounted for.
On December 4, 1950, the companypany sent a statement of account setting out the quantity of cloth actually delivered for dyeing, the quantity of cloth returned duly dyed and the balance of cloth, viz.,
Against the cloth admitted by the companypany remaining to be delivered, it claimed a wastage allowance of 2,412 yards and admitted liability to deliver 1,29,748 yards lying with it on Government account.
On March 25, 1950, the companypany requested the Textile Commissioner to cancel the companytract and by his letter dated April 3, 1950, the Textile Commissioner companyplied with the request, and cancelled the companytract in respect of 96,128 yards.
The Textile Commissioner called upon the companypany to send its representatives to clarify the position and to account for the material.
Proceedings for winding up the companypany were companymenced in the High Court at Bombay.
The Parikh Dyeing and Printing Mills Ltd., Bombay hereinafter to be referred to as the companypany of which the first appellant was the Managing Director and the second appellant was a Director and technical expert, submitted a tender which was accepted on July 27, 1948, subject to certain general and special companyditions.
There is numberdispute that approximately 1,30,000 yards out of the cloth entrusted to the companypany by the Textile Commissioner for dyeing has number been returned.
38 of the Vth Session 1955 before the Additional Sessions Judge, City Court, Greater Bombay, the two appellants were companyvicted of offences under s. 409 read with s. 34 of the Indian Penal Code.
Nor was any evidence led in support of the plea by the appellants.
40,000.
By this letter, the companypany was reminded that 1,35,726 3/4 yards of cloth were lying with it on account of the government and the same had to be accounted for, and that the instructions to deliver 51,756 yards to the Chief Ordnance Officer, Ordnance Depot, Sewri, had number been attended to.
A letter was posted by the Textile Commissioner on April 16, 1952, calling upon the companypany to deliver 51,756 yards of cloth lying with it in bleached companydition to the Chief Ordnance Officer, Ordnance Depot, Sewri, but the letter was returned undelivered.
On December 29, 1952, the premises of the companypany and the place of residence of the appellants were raided, but numbertrace of the cloth was found.
The Additional Sessions Judge sentenced the first appellant to suffer rigorous imprisonment for five years and the second appellant to suffer rigorous imprisonment for four years.
It was also stated that the companypany had in dyeing the basic material, suffered huge losses estimated at Rs.
Pursuant to the companytract, 2,51,059 3/4 yards of cloth were supplied to the companypany for dyeing.
Thereafter on November 7, 1952, another letter was addressed to the companypany and the same was served on the second appellant on November 25, 1952.
It was ultimately served with the help of the police on the second appellant in October 1952.
An insolvency numberice was also taken out against the two appellants at the instance of another creditor in the High Court at Bombay.
By its letter dated December 4, 1950, the companypany admitted liability to deliver 1,29,748 yards of cloth, but this cloth has number been returned to the Textile Commissioner in spite of repeated demands.
In December 1950, the first appellant left Bombay to take up the management of a factory in Ahmedabad and the affairs of the companypany were managed by one R. K. Patel.
Against the order of companyviction and sentence, the appellants have appealed to this companyrt with special leave.
The facts which gave rise to the charge against the two appellants are briefly these On June 15, 1948, the Textile Commissioner invited tenders for dyeing Pugree Cloth.
At the trial, the appellants sought to explain the disappearance of the cloth from the factory premises where it was stored, on the plea that it was old and was eaten up by white ants and moths, and had been thrown away as rubbish.
Shah, J. At a trial held with the aid of a companymon jury in Case No.
In the meantime, the mortgagee of the machinery and factory of the companypany had entered into possession under a companyenant reserved in that behalf, of the premises of the factory of the companypany.
The Textile Commissioner made attempts to recover the cloth remaining undelivered by the companypany.
