Facts
The accused was the Director of the Exchange Bank of India and was in full control of accounts. The accused was charged with appropriation of securities pledged with bank.
Issues
Whether a criminal Breach of trust took place.
Judgement
The securities were considered to be entrustment to the directors of the company, and it was impossible to believe he was unaware of the dealings. A relationship is created between the transferor and the transferee where the transfer remains the legal owner, and the transferee has only custody for the benefit of the transfer. The relationship shows no circumstance of the right to dispose of the property in contravention of the conditions of investment. Therefore, the accused was found guilty.
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