160319 in favour of the said Bank of Karad Ltd. for the sum of Rs.
The said Bank of Karad Ltd., in order to effect transfer of the said securities to the first Defendant issued its companybined SGL transfer from authorising the Reserve Bank of India to operate its SGL account and transfer and assign the said securities to the SGL account of the 1st Defendant.
In companysideration of the said securities purchased by the 1st Defendant, the 1st defendant issued their cheque dated 27th May, 1991 bearing No.
In the aforesaid circumstances, the aforesaid transactions between the 1 st defendant and Bank of Karad Ltd. and the 1st defendant and the plaintiff were squared off by Hiten Dalai in or about December 1991 between the Bank of Karad Ltd. the plaintiff.
58.39 crores for 11.50 GOI 2008 securities had remained outstanding till December 1991.
On 26th August 1991 the 1st defendant sold 11.50 GOI 2008 securities of the aggregate face value of Rs.
On the 1st defendant transactions with the 2 banks having been squared off, the 1st defendant obligations under the said three SGL transfer forms dated 4.9.1991 for Rs.
43.00 crores.
The appellant took the stand that he was working as Divisional Manager in Charge of Systems in the Employment of Canbank Mutual Fund that at the relevant time he was number companycerned with transactions of investment that in June 1993 Canbank investment Services Limited was incorporated to manage the affairs of the Canbank Mutual Fund and that his services were, therefore, transferred to this Company initially as a Divisional Manager and from December 1994 as an Assistant General Manager that on receipt of the Standard Chartered Banks letter dated 19th May, 1992 there appears to have been an internal inquiry by General Manager and the Chief Executive Fund and enquiries were also made by Mr. Acharya who was Assistant General Manager at that time and he submitted a numbere on 27th May, 1992.
On 29th May, 1991, the Reference Bank of India returned the said SGL transfer form issued by the Bank of Karad Ltd. on account of insufficient balance.
In all the aforesaid three sale transactions, Hiten Dalai and or his representative had brought the plaintiff cheque to the 1st defendant and had companylected for the plaintiff from the 1st defendant the cash memos, along with the transfer forms issued in favour of the plaintiffs.
1.61 crores for the plaintiffs from the 1st defendant on the same day.
31 of 1994 Jankiramans Committee Report Charge sheet filed by CBI in Case No.
Accordingly, on 19th December, 1991, Hiten Dalai brought form and on behalf of the plaintiff the original SGL transfer form in respect of the 11.50 GOI 2008 securities sold to the plaintiff on 26th August, 1991 aggregate face value Rs.
On enquiry, Hiten Dalai informed the 1st defendant that since there were sale transactions outstanding for the same security between the plaintiff and the 1st defendant in the sum of Rs.
The said Hiten Dalai who had earlier in the day brought the said SGL transfer forms dated 26th August, 1991 for Rs.
On 31st May, 1991, the said SGL transfer form was again presented to the Reserve Bank of India for clearance but was again returned for want of insufficient balance.
The 1st Defendant thereafter handed over the said SGL transfer form for 11.50 GOI 2008 securities of face value Rs.
10 crores, the 1st defendant transactions with the plaintiff to the extent of Rs.
43 crores and Rs.
43 companyes, dated 23.8.1991 for Rs.
5.39 crores were discharged and there was numberliability on part of the 1st defendant.
1.61 crores.
58.59 crores and another dated 18th December, 1991 for Rs.
43 crores, Rs.
A suit had been filed by the Standard Chartered Bank SCB against Canbank Mutual Fund CMF for refund of a sum of Mrs. 72.25 crores claiming the same to be due under three SGL transfer forms in Government of India security transactions purported to have been undertaken between SCB and CMF in August September 1991.
He advised the 1st defendant, he would directly deliver to the plaintiffs fresh SGL forms for that amount issued by the Bank of Karad Ltd. to the plaintiffs and would return to the defendant, three transfer form of Rs.
1.61 crores was presented by the plaintiffs to the Reserve Bank of India and cleared by effecting transfer of securities of face value of Rs.
10 crores.
58.39 crores issued by the Bank of Karad Ltd., with Reserve Bank of India, Public Debt Office, for clearance.
The relevant records which the appellant read in order to verify the written statement were Mr. Acharyas letter dated 16th June, 1992 Plaint in suit No.
The 1st defendant say that the SGL transfer form issued by the Bank of Karad Ltd. for Rs.
On 29th May, 1991, the 1st Defendant lodged the said SGL transfer forms for 11.50 GOI 2008 securities of face value of Rs.
In all the aforesaid three sale transactions Hiten Dalai had acted as a broker and he had approached the 1st defendant with a request to purchase the said securities on behalf of the plaintiff.
On 4th September 1991, the 1st defendant sold 11.50 GOI 2008 securities of the aggregate face value of Rs.
7 crores with a request to substitute the said SGL transfer forms with two SGL transfer forms, one dated 19th December 1991 for Rs.
10 crores and 7 crores issued in favour of the plaintiffs and the 1st defendant transaction with the Bank of Karad Ltd. and the plaintiff would stand squared off and 1st defendant would remain liable for securities of only the balance of Rs.
On 20th December, 1991, the SGL transfer form for Rs.
Further stand of the appellant was that he had been instructed to affirm the written statement on behalf of the trustees and he had numberpersonal knowledge of the transactions and based on the records he verified the statement.
1.61 crores from the 1st defendant SGL account to the plaintiff SGL account.
10 crores and dated 19.12.1991 for Rs.
The 1st defendant had made enquires with Hiten Dalai in respect of the said SGL transfer forms issued by the Bank of Karad Ltd. and which had been returned to Hiten Dalai in July 1991 for rectification and replacement.
7 crores from the plaintiffs, took the fresh 2 SGL transfer forms one dated 19th December 1991 for Rs.
7 crores.
58,90,16,042.44 being the companyt of the said securities of face value Rs.
58.39 crores and the amount of interest accrued thereon up to 27th May 1991.
58.39 crores issued by the Bank of Karad Ltd. to the broker Hiten Datal sometime in July 1991 for rectification and replacement by a fresh SGL transfer form of the said Bank of Karad Ltd. During the period 1991 August to December 1991, the 1st defendant in the companyrse of their investment business, entered into three sale transactions whereunder the 1st defendant sold 11.5 GOI 2008 securities to the plaintiff, particulars whereof are as follows On 23rd August, 1991, the 1st defendant sold 11.50 GOI 2008 securities of the aggregate face value Rs.
59.39 crores would be squared off and delivery of all the security would be directly transacted and adjusted between the Bank of Karad Ltd. and the plaintiffs.
1.61 crores.
