The circumstances were pointed out in the companyplaint made to the CBI as to how the acts of the appellant, clearly indicated their dishonest intentions to companyvert the share application money for their own benefit, and as such they had companymitted the offence under section 409 read with section 405 of the Penal Code.
From the Judgment and Order dated 17.5.1983 of the Patna High Court in Criminal Misc.
J The appellants on the relevant date, were managing director and directors of a Public Limited Company registered as M s Bihar Cable and Wire Industries Limited hereinafter referred to as the Company .
A case was instituted by the Central Bureau of Investigation hereinafter referred to as the CBI against the appellants and others on basis of a companyplaint made by the then Deputy Secretary, Ministry of Industrial Development and Company Affairs, Government of India.
When the Special Judicial Magistrate, CBI Cases, Patna, rejected the prayer of the appellants to discharge them, validity of that order was questioned by filing an application under section 482 of the Code of Criminal Procedure.
375 376 of 1985.
CRIMINAL APPELLATE JURISDICTION Criminal Appeal Nos.
Mrs. K. Amareswari, C.V.S. Rao, A.D.N. Rao and S.N. Jha for the Respondents.
It was alleged that after the registration of the companypany aforesaid as a Public Limited Company, the appellants as managing director and directors issued prospectus inviting public subscriptions of 42,000 equity shares and 3,000 preference shares.
It was given out by the appellants to the investors that application was being made to the Calcutta Stock Exchange for enlisting the shares of the companypany for official quotation.
Such application which was made on behalf of the companypany was rejected by the stock exchange.
N. Misra, Manish Misra and P.C. Kapur for the Appellants.
The Judgment of the Court was delivered by P. SINGH.
1931/83 and 9240 of 1982.
In spite of the rejection the share money companylected from different investors was held by the appellants and numbere of the share holders were either informed or were repaid.
After investigation of the allegations made in the companyplaint aforesaid the CBI submitted a chargesheet against the appellants along with some others for their trial for the offence under section 409 of the Penal Code.
