High Court Kerala High Court

P.C.Ravi vs State Of Kerala on 2 February, 2011

Kerala High Court
P.C.Ravi vs State Of Kerala on 2 February, 2011
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

CRL.A.No. 773 of 2003()



1. P.C.RAVI
                      ...  Petitioner

                        Vs

1. STATE OF KERALA
                       ...       Respondent

                For Petitioner  :SRI.P.VIJAYA BHANU

                For Respondent  : No Appearance

The Hon'ble MR. Justice M.SASIDHARAN NAMBIAR

 Dated :02/02/2011

 O R D E R
                  M.Sasidharan Nambiar, J.

                  --------------------------------------

                     Crl.A.No.773 of 2003

                  --------------------------------------

                            JUDGMENT

Appellant was Shop Manager of Maveli Store,

Cheriyanadu during the period 24.4.1990 to 13.3.1991. He

was the first accused in C.C.No.100/2000 on the file of

Special Judge (Vigilance), Thiruvananthapuram. He was

convicted and sentenced for the offences under Section 13

(2) read with Section 13(1)(c) of Prevention of Corruption

Act and Section 409 of Indian Penal Code. This appeal is

filed challenging the conviction and sentence.

2. Prosecution case was that appellant was the Shop

Manager of Maveli Store, Cheriyanadu from 24.4.1990 to

13.3.1991. Second accused was the Helper during

24.12.1990 to 13.3.1991. Third accused was the Helper

during 27.4.1990 to 4.12.1990 and fourth accused was the

Helper during 10.12.1990 to 24.12.1990. It was alleged that

appellant entered into a criminal conspiracy with the

remaining accused, who were the Helpers, to

CRA 773/03 2

misappropriate the commodities received at Maveli Store

and in furtherance of the object of criminal conspiracy, they

committed misappropriation by wilfully omitting to maintain

the Daily Stock-cum-Sales Return, Cash Book, Remittance

Register, Weekly Statement-cum-Sales Return, etc. and by

not accounting for the sales proceeds and misappropriated

an amount of Rs.1,14,589/- and thereby committed the

offences.

3. PW16, the Assistant Manager(Inspection), along

with PW17, the Junior Manager (Inspection), conducted

inspection of Maveli Store, Cheriyanadu on 6.3.1991 and

7.3.1991 and prepared Exhibit P13 report. It was found that

only an incomplete Stock Register was available in the

Maveli Store. Cash Book, Imprest Pass Book, Imprest

Vouchers, Liability Register, Daily Remittance Register,

Shortage Register and Up-to-date Stock Register were not

available. As inspection was conducted earlier up to the

period prior to 30.9.1990, inspection was restricted to the

period 1.10.1990 to 6.3.1991. It was found that basic

CRA 773/03 3

records were not maintained even after lapse of ten months,

as the Maveli Store started functioning with effect from

April 1990. It was found that as per the cash, though

Rs.3099.60 should have been in the cash chest, only

Rs.2,018/- was found and thereby there was a shortage of

cash of Rs.1,081/-. It was also found that there was

misappropriation of Rs.1,50,516.05. The inspection was

conducted in the presence of the appellant and the other

accused. Exhibit P13(a) statement was given and signed by

the appellant admitting that there was a shortage of

Rs.1,49,010.30. Appellant could not explain the shortage

and in the statement, he submitted that, to explain the

shortage, the records are to be examined again in detail. In

Exhibit P13 report, it was specifically stated that for fixing

the actual loss and misappropriation, a detailed inspection

is necessary. On receipt of Exhibit P13 report, PW8, the

Regional Manager, directed PW17 to conduct a detailed

inspection. PW17 conducted a detailed inspection and

submitted Exhibit P2 report along with Exhibit P2(a), details

CRA 773/03 4

of liability and trading particulars, based on the

consignment notes by which the commodities were received

at the Maveli Store as well as the Weekly Statements

furnished from the Maveli Store to the Unit Depot. PW17

found that value of the commodities received at the Maveli

Store as per the consignments from 24.4.1990 to 13.3.1991

was Rs.12,18,011.70. Commodities worth Rs.73,473.85

were found issued on credit basis under noon feeding

programme. After receipt of Exhibit P13 report, appellant

was suspended on 14.3.1991. On effecting the suspension,

appellant handed over charge to PW9. Exhibit P7 was the

charge report prepared by the appellant in his own

handwriting. In Exhibit P7, appellant furnished the details

of the commodities available at the Maveli Store as well as

the cash available and the shortage of cash and the records

which were handed over to PW9. PW17 found that value of

the commodities handed over by the appellant to PW9

under Exhibit P7 was Rs.18,173.20. It was found that

deducting the value of the commodities which were

CRA 773/03 5

available when appellant handed over charge to PW9 and

that of the commodities issued on credit basis under noon

feeding programme, from the value of the commodities

received at the Maveli Store, the total amount which should

have been remitted to the Bank is Rs.11,26,364.70.

Verifying the remittance in the Bank, PW17 found that total

remittance was only Rs.10,10,857.50. Adding Rs.86.50

which was the cash handed over by the appellant to PW9, as

seen from Exhibit P7, it was found that value of the

unaccounted commodities was Rs.1,15,420.70. Finding that

there will be fluctuations in the value and the economic cost

would be more than the value shown in the consignment

notes, computing an average of the minimum of 20% and

maximum of 35% during the relevant period, worked out at

25.85%, PW17 fixed the said amount at Rs.29,836.25.

Adding it to Rs.1,15,420.70, the amount misappropriated

was fixed at Rs.1,45,256.95. PW17 fixed the liability with

18% interest on that amount, making a total of

Rs.1,68,179.70. Based on Exhibit P13 report, PW8

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submitted a report to the Superintendent of Police,

Alappuzha. Crime No.128/1992 of Chengannur Police

Station was registered under Exhibit P53 FIR. Finding that

an offence under Prevention of Corruption Act is attracted,

the case was transferred to the Vigilance and V.C.No.

10/96/VACB, Alappuzha was registered under Exhibit P58

FIR.

4. PWs 19, 20 and 25 conducted the investigation.

After completing the investigation and obtaining Exhibit

P55 order issued by PW22, the Managing Director of Kerala

State Civil Supplies Department, granting sanction sanction

to prosecute the accused, charge was laid before Special

Court (Vigilance), Thiruvananthapuram. It was taken

cognizance for the offences under Sections 409, 468, 477A

read with Section 120B of Indian Penal Code and Section 13

(1)(c) read with Section 13(2) of Prevention of Corruption

Act, 1988.

5. All the accused pleaded not guilty. Prosecution

examined twenty five witnesses and marked fifty eight

CRA 773/03 7

exhibits. After closing the prosecution evidence, accused

were questioned under Section 313 of Code of Criminal

Procedure. When called up to adduce evidence, appellant

examined DW1 and got marked Exhibits D1 to D9.

6. Learned Special Judge, on the evidence, found that

appellant, being the Manager of the Maveli Store, is liable

to account for the commodities received at the Maveli Store

from the Unit Depot, after giving the intent and received

under consignments and even if some commodities were

received by the other accused, who are only Helpers, it is

for the appellant to account for the same. Based on Exhibits

P5 and P6 consignment notes relating to Maveli Store,

Cheriyanadu and Exhibits P26, P27, P28 and 44 Weekly

Statements-cum-Sales Return prepared and sent by the

appellant and Exhibit P2 report prepared by PW17, learned

Special Judge found that total value of the commodities

consigned to the Maveli Store, Cheriyandu during the

period from 24.4.1990 to 13.3.1991 was Rs.12,05,817/-.

Deducting Rs.7,775/-, covered by the inadmissible portion of

CRA 773/03 8

Exhibits P5(s) and P5(ah) consignment notes, the total value

of the commodities for which appellant has to account was

Rs.11,98,042/-. Based on the evidence, it was found that

total amount remitted by the appellant in the Banks was

Rs.10,15,003/- and adding Rs.73,744/-, being the value of

the commodities issued on credit basis under noon feeding

programme and the value of the commodities handed over

to PW9, evidenced by Exhibit P7, namely, Rs.18,173/- and

cash of Rs.86.50, rounded to Rs.87/-, which was handed

over by the appellant to PW9, the amount which was found

short and not accounted by the appellant was found

Rs.91,305/-. Learned Special Judge found that the said

amount was fraudulently and dishonestly misappropriated

by the appellant and he thereby committed the offence

under Section 13(2) read with Section 13(1)(c) of

Prevention of Corruption Act. Learned Special Judge found

that evidence do not establish that appellant committed

offences under Sections 120B, 477A or 467 of Indian Penal

Code. He was acquitted of the said offences. Appellant was

CRA 773/03 9

also found guilty and was convicted for the offence under

Section 409 of Indian penal code. Learned Special Judge

acquitted accused 2 to 4 finding that prosecution did not

establish any of the charges levelled against them. After

hearing the appellant on the question of sentence, he was

sentenced to rigorous imprisonment for three years and a

fine of Rs.20,000/- and in default, rigorous imprisonment for

one more year for the offence under Section 13(2) read with

Section 13(1)(c) of Prevention of Corruption Act. He was

also sentenced to rigorous imprisonment for three years for

the offence udner Section 409 of Indian Penal Code. But, no

fine was imposed for the said offence, in view of the fine

awarded for the other offence. He was also granted the

benefit under Section 428 of Code of Criminal Procedure.

7. Learned senior counsel appearing for the appellant

and learned Public Prosecutor were heard.

8. Argument of the learned senior counsel is that

prosecution did not establish the entrustment or

misappropriation or any fraudulent or dishonest intention. It

CRA 773/03 10

was argued that though Exhibits P13 and P2 reports were

relied on by the learned Special Judge and prosecution got

marked Exhibits P5 and P6 book containing the

consignment notes and also got marked Exhibits P5(a) to P5

(ak) and P6(a) to P6(m) consignment notes, no evidence was

let in with regard to the details of the commodities received

under each of the consignment notes or the details of the

commodities shown Exhibits P26, P27, P28 and P44 Weekly

Statements furnished by the appellant and therefore, there

is no evidence on the exact quantity of the commodities

entrusted, sold or misappropriated by the appellant. It was

argued that it was the learned Special Judge who calculated

the value of the commodities based on the consignment

notes and weekly statements, without supporting evidence

and entered the finding and even the consignment notes,

which were not proved, were relied on and if those

unmarked consignment notes are excluded, there may not

be any shortage in the value of the commodities and

therefore, the conviction is not sustainable.

CRA 773/03 11

9. Learned senior counsel also argued that there is

absolutely no evidence to prove that there was any

dishonest intention on the part of the appellant to

misappropriate any amount and in the absence of any

dishonest or fraudulent intention, as is clear from the

proved facts, it is clear that appellant had furnished correct

weekly statements to the unit depot and in such

circumstances, even if there was any shortage due to his

inexperience or lack of knowledge or negligence, it will not

amount to a dishonest misappropriation and therefore, on

the ground of shortage alone, appellant cannot be

convicted. Learned senior counsel also pointed out that

Exhibit P7 charge report itself shows that stock register

was taken away by the Assistant Manager (Inspection) and

evidence of PW16 corroborates that evidence and in such

circumstances, when prosecution did not seize or produce

the relevant records, appellant cannot be find fault for the

same and in any case, on the evidence, appellant could not

have been convicted. Finally, it was submitted that sentence

CRA 773/03 12

awarded is excessive and it warrants interference, in case,

the conviction is to be confirmed.

10. Learned Public Prosecutor pointed out that when

PW17 was examined and Exhibit P2 report along with

Exhibit P2(a) statement was marked, correctness of the

commodities received at the Maveli Store, prepared by

PW17 based on the consignment notes, was not challenged

and in such circumstances, appellant cannot dispute that

commodities were received at the Maveli Store as assessed

by PW17. It was also pointed out that learned Special Judge

analysed each of the consignment notes marked and

omitted to be marked with reference to the weekly

statements prepared by the appellant himself and

forwarded to the unit depot and finding that there were

corrections in Exhibits P5(s) and P5(ah), Rs.7,775/-, being

the value of the corrected commodities, were deducted. It

was found that Rs.91,305/- was unaccounted and appellant

has no explanation for the said shortage. It was argued that

appellant did not maintain the stock registers properly or

CRA 773/03 13

the cash book and hence, it is clear that there was dishonest

intention on the part of the appellant to misappropriate the

amount and in such circumstances, the conviction is

perfectly legal. It was also pointed out that in any case, it is

conclusively established that there was a shortage of

Rs.1,869.65 in cash, which should have been there as per

the cash book, as admitted by the appellant himself in

Exhibit P7 and no further evidence is necessary with regard

to misappropriation of the said amount.

11. Exhibit P4 proceedings issued by the Managing

Director, Kerala State Civil Supplies Corporation, provides

the procedure to be followed on opening a Maveli Store. It

shows that Shop Manager is in over all charge of the Store

and is directly responsible for cash, goods traded in the

Store, furniture and other assets of the Store. It further

shows that Shop Manager shall ensure proper maintenance

of the Store and is responsible for maintaining maintenance

of stock accounts, assets register, consignment register,

issue of bill for all sales, remittance of sales proceeds of

CRA 773/03 14

every day on the next day, to keep proper account for

imprest expenses, send daily sales returns and other

periodicals and open the Store on all days except Sundays

and notified holdings observing the timings and to display

the stock-cum-price board showing the available stock and

the price. It also shows that it is for the Shop Manager to

take delivery of the goods indented and to account the same

in the respective registers and if any shortage is detected, it

should be informed to the concerned unit depot and

Regional Manager. It also provides that no sale shall be

made on credit and cash collection should be kept in the

cash chest, provided and the key of the cash chest and show

room shall be kept by the Shop Manager on duty. It further

shows that prompt accounting of the sales proceeds of the

Corporation opened for the purpose should be made on the

next day morning positively and till this arrangement is

made, the sales proceeds shall be remitted by way of

Demand Draft drawn in favour of Kerala State Civil Supplies

Corporation which shall be credited in the collection

CRA 773/03 15

account of the Unit Manager concerned. It is, therefore,

conclusively established that being the Shop Manager, it is

for the appellant to maintain all the required registers and

also to take delivery of the commodities indented from the

unit depot and account them in the respective registers and

remit the sales proceeds in the account maintained for that

purpose by Kerala State Civil Supplies Corporation on the

very next day and the cash shall be kept in the cash chest

and the key of the cash chest must be in the custody of the

appellant.

12. The fact that Maveli Store, Cheriyandu started

functioning with effect from 24.4.1990 and appellant was

appointed the Shop Manager and appellant has been

functioning as the Shop Manager till he was suspended by

PW8, after receipt of Exhibit P13 report and appellant had

given charge to PW9 on 14.3.1991 are not disputed. The

fact that PWs 16 and 17 conducted inspection in the Maveli

Store on 6.3.1991 and 7.3.1991 and prepared Exhibit P13

report in the presence of the appellant and Helpers and at

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the time of inspection, shortage of commodities were found

and Exhibit P13(a) statement was furnished by the

appellant stating that a shortage of Rs.1,49,010.30 was

found and there was a deficit of cash, as out of Rs.3,833/-

which should have been there as the sales proceeds, only

Rs.1,081.67 was found. Appellant asserted that he is not in

a position to explain the deficit at that point of time and

explanation could be offered on examination of the accounts

once again. As Exhibit P13 report was prepared on

assumptions and it was recommended that a detailed

inspection is necessary, after receipt of Exhibit P13 report,

appellant was placed under suspension directing him to

hand over charge to PW9. It was pursuant to the order of

suspension, appellant handed over the charge to PW9 after

preparing Exhibit P7 charge report in his own hand writing.

Exhibit P7 shows the details of the commodities, the cash

and records handed over to PW9 on 14.3.1991 and taken

charge by PW9 on the same day. It further shows that cash

handed over was Rs.86.50 and appellant had shown that the

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cash, which should have been there, as per the cash balance

shown in the cash book, was Rs.1,956.15. Appellant himself

has shown the variation as Rs.1,869.65, though he has

shown that it is the imprest account. At Page No.5 of

Exhibit P7, appellant has recorded that pass book is

misplaced and a duplicate pass book was applied for.

Exhibit P7 itself is sufficient to prove that as on 14.3.1991,

when appellant was placed under suspension, though there

should have been a cash of Rs.1,956.15, appellant handed

over only Rs.86.50 and there was a shortage of Rs.1,869.65.

13. Though learned senior counsel argued that

appellant had accounted the same, by producing Exhibits

D1, D2, D4 to D6 bills, the shortage cannot be explained.

Exhibits D1, D2 and D4 to D6 bills relate to the year 1990.

Moreover, if these bills were there for remitting the

amounts during the relevant period, appellant should have

handed over those receipts along with other records and

cash at the time of handing over the charge to PW9. Even if

the entire amount covered by those bills produced by the

CRA 773/03 18

appellant is accepted, it would come to only Rs.894.25 and

the balance was not accounted.

14. There is force in the argument of the learned

counsel appearing for the appellant that prosecution did not

let in evidence in detail with reference to each consignment

notes and the corresponding weekly statements sent by the

appellant. But, I cannot agree with the argument of the

learned senior counsel that on that ground, finding of the

learned Special Judge, on a proper analysis of the

consignment notes and weekly statements forwarded by the

appellant, the shortages found out correctly are to be

ignored or cannot be upheld. It is to be borne in mind that it

was in the presence of the appellant, PWs 16 and 17

inspected the Maveli Store, verified the records and

commodities and submitted Exhibit P13 report. It is clear

that they satisfied the appellant that there was shortage of

commodities to the value of Rs.1,49,010.30. It is thereafter

PW17 conducted a detailed inspection and furnished Exhibit

P2 report along with Exhibit P2(a) statement showing the

CRA 773/03 19

details of each of the commodity received at the Maveli

Store, including its weight and value. Though PW17 or the

other officers of Civil Supplies Department, who were

examined, did not give evidence with reference to the

contents of each of the consignment notes or the details of

the commodities received thereunder, evidence of PW17

shows that said report was prepared with reference to the

consignment notes available at the Maveli Store as well as

at the unit depot and on comparing each with the other and

satisfying that there are same corrections in the

consignment notes available in the Maveli Store as well as

in the unit depot. PW17 also deposed how he fixed the

shortage based on this data. PW17 was not cross-examined

with reference to the correctness of the commodities or the

weight of each of the commodity recorded in Exhibit P2(a)

statement. There is no case for the appellant, when PW17

was cross-examined, that quantum of the commodities

recorded in Exhibit P2(a) statement are not correct or are

not in accordance with the quantity of the commodities

CRA 773/03 20

noted in Exhibits P5 and P6 consignment notes. Similarly, it

is not disputed that Exhibits P26, P27, P28 and P44 weekly

statements were prepared by the appellant himself and

forwarded to the unit depot. Evidence of PW17 also shows

that Exhibit P2 report was prepared with reference to the

said statements also. Learned Special Judge elaborately

considered each of the consignment notes with reference to

the weekly statements and found that receipt of the

consignments is established by the entries in the weekly

statements prepared by the appellant and forwarded to the

unit depot. Though learned senior counsel argued that

learned Special Judge was not justified in relying on the

unmarked consignment notes, as no evidence was let in

with reference to the said contents, learned Special Judge

found that there are corresponding entires with regard to

the said unmarked consignment notes in the weekly

statements furnished by the appellant. Even if it is taken

that as the respective consignment notes were not proved

and therefore, they cannot be relied upon, the

CRA 773/03 21

corresponding entires made by the appellant himself in the

weekly statements establish that those commodities were

received at the Maveli Store. If that be so, learned Special

Judge was justified in finding that there was shortage with

reference to the entires in the weekly statements forwarded

by the appellant himself.

15. Learned senior counsel has no case that any of the

findings of the learned Special Judge with reference to the

consignment notes are not in accordance with the details

shown in the weekly statements. In such circumstances, it is

not necessary to discuss in detail each of the consignment

notes relied upon by the learned Special Judge. Evidence

conclusively establish that the commodities, noted by PW17

in Exhibit P2(a) statement, were received at the Maveli

Store, Cheriyanadu.

16. As stated earlier, being the Shop Manager, it is the

responsibility of the appellant to enter the commodities so

received in the stock register as well as show the details of

the commodities sold and the balance on each day.

CRA 773/03 22

Appellant has no case that he maintained the registers as

provided under Exhibit P4 proceedings of the Managing

Director of Kerala State Civil Supplies Corporation.

Evidence conclusively establish that there was shortage of

commodities when appellant handed over charge to PW9 on

14.3.1991. That shortage has been worked out by PW17 in

Exhibit P2 report. True, PW17 did not value the

commodities with reference to the bullet prevailing on the

respective months. PW17 assessed the value taking the

economic cost on an average of 25.85%. Even if that excess

is not added to the total value of the commodities, there is

shortage. Learned Special Judge in fact deducted

Rs.7,775/-, being the amount covered by the items,

corrected in Exhibits P5(s) and P5(ah) consignment notes

and also deducted the amount covered by Exhibits D1, D2

and D4 to D6 series of bills produced by the appellant

before the court and fixed the shortage at Rs.91,305/-. In

fact, on the evidence, amount covered by Exhibits D1, D2

and D4 to D6 bills could not have been given credit to as

CRA 773/03 23

they relate to much earlier period. Whatever it be, on the

evidence, I find no reason to interfere with the findings.

17. Then the only question is whether, for this

shortage, it could be said that appellant misappropriated

the amount with a dishonest or fraudulent intention.

Argument of the learned senior counsel is that appellant

joined there only on 24.4.1990 and he was inexperienced

and if due to his lack of knowledge of the procedures or

accounts or at best due to his negligence there was

shortage, it will not amount to misappropriation. Relying on

the decision of this Court in State of Kerala v.

Sudhakaran (1988 (1) KLT SN Case No.80) and the

decision of the Honourable Supreme Court in Radha

Pisharassiar Amma v. State of Kerala ((2007) 13 SCC

410), it was argued that the fact that there was shortage

does not automatically establish that there was a dishonest

or fraudulent intention to misappropriate the amount and

mens rea is to be established and there is no evidence to

prove the same. Learned single Judge in Sudhakaran’s

CRA 773/03 24

case (supra), found that all the ingredients of the offence

which includes the dishonest mental condition or intention,

which is termed mens rea will also have to be established

and burden is to prove something much more than failure of

omission. Learned single observed as follows:

“When entrustment is proved and deficiency
coupled with failure to account, answer or return is
established, dishonest misappropriation or
conversion may be a matter for inference without
further proof. But that need not necessarily be so
in all cases. The inference is possible only when
the proved facts and circumstances lead to that
conclusion. In a case where it is possible that the
entrusted property might have been lost or mislaid
or stolen or taken away by somebody else, the
mere failure or omission without anything more
will not be sufficient to prove the offence.”

That does not mean that when entrustment is proved and

the accused has no explanation with regard to his failure to

account for the same, an inference cannot be drawn in the

absence of proof of mens rea that there was dishonest

intention to misappropriate. Position would be different if

he has an explanation that the article or money entrusted or

under his domine was lost or was stolen or was taken away

CRA 773/03 25

by somebody else, as found by the learned single Judge. The

Honourable supreme court in Radha Pisharassiar

Amma’s case (supra), observed that evidence must show

that accused dishonestly misappropriated or converted to

his own use that property or dishonestly used or

dispossessed that property in violation of any direction of

law prescribing the mode in which said trust is to be

discharged. Facts of the case are entirely different.

18. As stated earlier, when PWs 16 and 17 inspected

the Maveli Store, there was a cash of Rs.1,081/-. That was

on 6.3.1991. Appellant handed over the charge to PW9 after

he was suspended on 14.3.1991. At that time, the cash,

which was handed over, was only Rs.86.50. Therefore, when

Rs.1,081/- was available on 6.3.1991, even after the deficit

was pointed out to the appellant, he failed to explain the

same in Exhibit P13(a) statement. When appellant handed

over charge on 14.3.1991, Rs.1,081/- was further reduced to

Rs.86.50. This deficit cannot be explained by any other

means like was stolen or taken away or utilised for any

CRA 773/03 26

other purpose. Even if Exhibits D1, D2 and D4 to D6 series

of bills are accepted, they all relate to a period prior to

6.3.1991 and cannot explain the said shortage. When

appellant was aware that there was shortage of cash, he

cannot be expected to spend any amount after 6.3.1991

without proper receipt or voucher. If there was any such

voucher or bill, it should have been available with the

appellant and he should have produced it before PW9 on

14.3.1991. Even at the time of Evidence, appellant has no

case that balance of Rs.1,081/-, less Rs.86.50 handed over

to PW9, was spent on any account. It is, therefore,

absolutely clear that appellant misappropriated that

amount. With this in mind, non accounting of commodities

of Rs.90,000/-, as found by the learned Special Judge, is to

be appreciated. The very fact that appellant did not

maintain the registers, which should be maintained as

provided under Exhibit P4 proceedings, establishes that he

had a dishonest intention. If a proper stock register is

maintained showing the details of the stock available after

CRA 773/03 27

deducting the sales proceeds of the commodities sold each

day and the balance available, as and when an inspection is

conducted in the Maveli Store, it is very easy to find out the

deficit. Evidently, to circumvent that detection, the stock

register was not properly maintained. That itself establishes

the fraudulent and dishonest intention of the appellant. On

the evidence, I have no hesitation to confirm the finding of

the learned Special Judge that appellant committed offences

under Section 409 of Indian Penal Code as well as Section

13(2) read with Section 13(1)(c) of Prevention of Corruption

Act. The fact that prosecution failed to establish that

appellant committed forgery or falsified the accounts or

entered into a criminal conspiracy with the other accused

will not affect his conviction for the offences under Section

409 of Indian Penal Code and Section 13(2) read with

Section 13(10(c) of Prevention of Corruption Act, as

ingredients of the offences are conclusively proved by the

prosecution. Hence, the conviction for the said offences can

only be confirmed.

CRA 773/03 28

19. Then the only question is regarding the sentence.

Learned senior counsel submitted that appellant has been

facing the threat of prosecution for more than a decade and

he has a wife and son to maintain and in such

circumstances, leniency be shown. Learned Special Judge

awarded a substantive sentence of rigorous imprisonment

for three years and a fine of Rs.20,000/- an in default,

rigorous imprisonment for one year for the offence under

Section 13(2) read with Section 13(1)(c) of Prevention of

Corruption Act. Though substantive sentence of rigorous

imprisonment for three years was also awarded for the

offence under Section 409 of Indian Penal code, that

sentence was directed to run concurrently. Section 13(2) of

Prevention of Corruption Act provides for a minimum

sentence of one year. Considering the entire facts and

circumstances of the case, interest of justice will be met if

the sentence is modified to rigorous imprisonment for two

years and a fine of Rs.80,000/- and in default, simple

imprisonment for six months for the offence under Section

CRA 773/03 29

13(2) read with Section 13(1)(c) of Prevention of Corruption

Act. In view of the said modification in the sentence,

substantive sentence for the offence under Section 409 of

Indian Penal Code is also to be reduced to rigorous

imprisonment for two years.

Appeal is allowed in part. Conviction of the appellant

is confirmed. Sentence is modified as follows:

Appellant is sentenced to rigorous imprisonment for

two years and a fine of Rs.80,000/- and in default, simple

imprisonment for six months for the offence under Section

13(2) read with Section 13(1)(c) of Prevention of Corruption

Act. He is also sentenced to rigorous imprisonment for two

years for the offence under Section 409 of Indian Penal

Code. Substantive sentences shall run concurrently. Special

Judge (Vigilance), Thiruvananthapuram is directed to

execute the sentence.



2nd February, 2011          (M.Sasidharan Nambiar, Judge)

tkv

CRA 773/03    30




                M.Sasidharan Nambiar, J.

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Crl.A.No.773 of 2003

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JUDGMENT

2nd February, 2011