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Nagendra Nath Sinha And Others v. Emperor Opposite Party.

Calcutta High Court
Jan 26, 1934
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Factual and Procedural Background

Two petitioners, Raja Nagendra Nath Sinha Sahas Roy (Petitioner 1) and Nagendra Nath Das (Petitioner 2), obtained a Rule calling upon the District Magistrate of Midnapur to show cause why certain proceedings should not be quashed. Petitioner 1 claimed proprietorship and khas possession of a jungle; petitioner 2 was a forest guard employed by petitioner 1. A complaint was lodged by petitioner 1 alleging that Baikuntha Nath Ghose and others were in possession of logs of wood allegedly stolen from petitioner 1's jungle.

A Second Class Magistrate tried the case, acquitted the accused for failure of the prosecution to prove beyond reasonable doubt that the trees were cut from the complainant's plot, but ordered that the alleged stolen logs be returned to petitioner 1 (order dated 5 June 1933). The accused appealed under Section 520 CrPC on 7 June 1933. The Additional District Magistrate (ADM) admitted the appeal, called for records, issued notice to the complainant and fixed a hearing; he also purportedly stayed the restoration pending the appeal. Due to an office mistake, the stay order was not communicated to the trial Magistrate.

On 5 July 1933 a police notice invited petitioner 1 to take delivery of the logs within three days or face public auction and forfeiture to the Government. On 7 July 1933 petitioner 2 took delivery of the logs from the President Panchayat. The ADM heard the appeal on 11 July 1933 and, unaware that the logs had been taken, held that the logs should be returned to Baikuntha Nath Ghose and others and allowed the appeal. Subsequently, on 20 September 1933 the ADM directed prosecution of the two petitioners for an offence under Section 403 IPC, purportedly taking cognizance under Section 190(1)(c) of the Code. This Rule challenges that order.

Legal Issues Presented

  1. Whether the order of the Additional District Magistrate taking cognizance and directing prosecution of the petitioners under Section 403, I.P.C., (pursuant to Section 190(1)(c) CrPC) was legally justified on the materials before him.
  2. Whether taking delivery of the logs pursuant to a police notice and subsequently disposing of them (with knowledge of a stay order issued in the appeal) constitutes criminal misappropriation under Section 403, I.P.C., on the facts of this case.
  3. Whether a criminal court, in circumstances where property has been used up or sold, can compel production of the property or the money equivalent (including the applicability of the decision in Piggot v. Ali Muhammad Mandal and Section 517 CrPC) and whether such relief should be granted here.

Arguments of the Parties

Additional District Magistrate's Position

  • The ADM stated that pleaders for the petitioners in his Court knew of the stay order (issued on 7 June 1933) and that knowledge should be imputed to the petitioners.
  • The ADM held that the petitioners "must have acted dishonestly" in taking delivery of the properties on 7 July 1933 and converting them to their own use, thereby making restoration impossible.
  • On that basis the ADM directed prosecution under Section 403 IPC and took cognizance under Section 190(1)(c) CrPC.

Position advanced on behalf of Baikuntha Nath Ghose and others (Mr. Mukherjee)

  • Mr. Mukherjee relied on the decision in Piggot v. Ali Muhammad Mandal (AIR 1921 Cal 30) and the terms of Section 517 CrPC (as amended in 1923) to argue that the criminal Court can compel production of property or the money equivalent where part of the property has been used or the rest sold.
  • He relied upon an affidavit asserting that the petitioners disposed of or converted the properties to their own use after the ADM's order dated 11 July 1933; the affidavit was presented as supporting grounds for prosecution.

Petitioners' Position (as reflected in the record)

  • The petitioners acted on a police notice which distinctly called upon them to take delivery of the logs and threatened forfeiture if they failed to do so; that notice justified taking delivery on 7 July 1933.
  • On the record before the ADM, the petitioners' taking of delivery in response to the police notice (and any subsequent disposal) did not, on the materials relied upon by the ADM, amount to criminal misappropriation warranting prosecution under Section 403 IPC.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Piggot v. Ali Muhammad Mandal, AIR 1921 Cal 30 Supports the proposition that a criminal Court may compel production of property capable of production and require production of the money equivalent for property incapable of production (in appropriate circumstances). The Court acknowledged the rule and the power of the criminal Court under Piggot and Section 517 CrPC, but declined to exercise that power in this case because the available material did not permit a practicable or satisfactory inquiry into what happened to the logs or their sale proceeds. The Court therefore upheld the ADM's advice that aggrieved parties should seek relief in a civil Court.

Court's Reasoning and Analysis

The Court analyzed the ADM's reasoning and the available materials step by step:

  1. The ADM's stated basis for prosecution was that the petitioners, with knowledge of a stay order (issued by the ADM on 7 June 1933), nevertheless took delivery of the logs on 7 July 1933 and disposed of them, thereby acting dishonestly and making restoration impossible.
  2. The Court observed that the petitioners had received a police notice explicitly calling upon them to take delivery within three days and warning of forfeiture and sale if they did not. That notice, the Court held, clearly justified taking delivery of the logs in the circumstances.
  3. The Court held that mere knowledge of the stay order and the subsequent taking of delivery pursuant to the police notice did not, on the materials before the ADM, amount to criminal misappropriation under Section 403 IPC. To sustain a prosecution under Section 403, something more specific needed to be alleged — namely, a dishonest conversion after the ADM's order — and the ADM's order appeared to rest on the fact of taking delivery and disposal rather than on conversion after 11 July 1933.
  4. The affidavit relied on by Mr. Mukherjee alleged conversion after 11 July 1933 based on the deponent's information from an inquiry, but the deponent did not disclose particulars of that inquiry or the source of information. The Court declined to base a prosecution on this unsupported affidavit evidence and expressly refrained from deciding whether such an allegation, if properly established, would suffice for a prosecution under Section 403.
  5. On the separate application by Baikuntha Nath Ghose and others challenging the ADM's advice that they seek civil relief, the Court accepted that the criminal Court does possess powers (per Piggot and Section 517 CrPC) to compel production or payment of money equivalent. However, the Court considered an inquiry into what happened to the logs (how much was used, how much sold and for what price) would likely be impracticable and unproductive on the record before it.
  6. Because the record did not disclose sales proceeds or sufficient particulars to permit a practicable criminal process for determining value or seizable proceeds (a mere statement estimating value at "Rs. 300 or so" was insufficient), the Court concluded that the ADM's direction advising a civil remedy was appropriate in the circumstances.

Holding and Implications

Holding:

The Court made the Rule absolute in part and disposed as follows:

  • The prosecution under Section 403, I.P.C. against the two petitioners (Raja Nagendra Nath Sinha Sahas Roy and Nagendra Nath Das) is quashed. The proceedings initiated by the Additional District Magistrate under Section 190(1)(c) CrPC (No. 1186 of 1933) cannot be allowed to proceed on the materials upon which he acted.
  • The rule filed by Baikuntha Nath Ghose and others challenging the ADM's order of 20 September 1933 is discharged. The Court held that the ADM's direction that the aggrieved parties should seek relief in a civil Court was proper in the circumstances because a criminal inquiry into the fate and value of the logs would likely be impracticable and unproductive on the record before the Court.

Implications:

  • The direct effect is that the criminal prosecution against the two petitioners for misappropriation under Section 403 IPC is terminated; they are relieved of the criminal proceedings initiated by the ADM on the stated grounds.
  • The aggrieved parties (Baikuntha Nath Ghose and others) are left to pursue civil remedies for recovery or compensation for the logs; the Court did not order a criminal remedy requiring production of the property or monetary equivalent in this instance due to evidentiary and practical limitations.
  • The Court explicitly recognized the criminal Court's power (as per Piggot v. Ali Muhammad Mandal and Section 517 CrPC) to order production or monetary relief in appropriate cases, but determined that no new general precedent was to be created by ordering such relief on the present record. The decision is narrowly tied to the insufficiency and impracticability of the materials before the Court.
R.K

Disposition: Rule absolute quashing prosecution under S.403 IPC against the two petitioners; Rule discharged insofar as the complaintants' request for setting aside the ADM's advice to seek civil remedy. (Final lines of the opinion: "10. Rule discharged.")

Show all summary ...

1. This is a Rule issued at the instance of two petitioners, No. 1 Raja Nagendra Nath Sinha Sahas Roy and No. 2 Nagendra Nath Das calling upon the District Magistrate of Midnapur to show cause why certain proceedings complained of in the petition, on which this Rule has been issued, should not be quashed or why such other or further order should not be made as to this Court may seem fit and proper.

2. The facts necessary to be stated for the purposes of this Rule are the following. Petitioner 1 is the proprietor of a jungle which he alleges is in his khas possession, and petitioner 2 is a forest guard in the employ of petitioner 1. A complaint was lodged on behalf of petitioner 1 against one Baikuntha Nath Ghose and others as accused persona alleging that they were in possession of certain stolen properties, to wit, certain logs of wood, the allegation being that they had been taken away by theft from a portion of the jungle in the khas possession of petitioner 1.

3. The case was tried by a Second Class Magistrate, who acquitted the accused holding that the prosecution had failed to prove beyond reasonable doubt that the trees in question had been cut from the plot which was alleged to be in the khas possession of the complainant, i.e, petitioner 1. At the same time, the Magistrate ordered the alleged stolen logs to be returned to petitioner 1. This order was made on 5th June 1933. The accused Baikuntha Nath Ghose and others preferred an appeal under Section 520 of the Cr PC, on 7th June 1933; and the Additional District Magistrate of Midnapur on the same day admitted the appeal, called for the records, directed issue of notice on the complainant and fixed 22nd June 1933 for the hearing of the appeal. At the same time, the learned Additional District Magistrate made an order staying the restoration of the properties to the complainant, i.e, petitioner 1, pending disposal of the appeal. It now appears that on account of some mistake in the office of the learned Additional District Magistrate, the order staying the restoration of the properties was not communicated to the trial Magistrate.

4. It is not necessary to refer to the orders that were thereafter passed from time to time by the latter, but it will be sufficient to state that eventually, on 5th July 1933, a notice issued by a Police Officer of Binpur Police Station was received by some officer of petitioner 1 whereby the said petitioner was called upon to take delivery of the trees and it was also stated in that notice that if the said petitioner failed to take delivery within three days of the said notice the same would be sold by public auction and the sale proceeds would be forfeited to Government. The notice also said that it purported to be issued in pursuance of the order which the trial Magistrate, had made. On receipt of the aforesaid notice, on 7th July 1933, petitioner 2 took delivery of the logs from the President Panchayat in whose charge the said logs had been up to that time. The fact that the properties had thus been taken away by petitioner 2 on behalf of petitioner 1 was not brought to the notice of the Additional District Magistrate when he heard the appeal under Section 520 of the Cr PC. This the learned Magistrate did on 11th July 1933. On that day the learned Additional District Magistrate holding that the proper order to make in the circumstances of the case was to return the logs to the persons with whom they had been found, allowed the appeal, set aside the order of the trial Magistrate and directed that the logs in question should be returned to the aforesaid Baikuntha Nath Ghose and others. On these facts, the Additional District Magistrate, on 20th September 1933, directed the prosecution of the two petitioners for an offence under S. 403, I.P.C He purported to take cognizance of the offence under Section 190, Clause (1), sub-Clause (c) of the Code. It is against this order of the Additional District Magistrate that the present Rule is directed.

5. It appears that the proceedings have been taken as aforesaid by the learned Additional District Magistrate upon the view that although on 11th July 1933 the properties were ordered to be restored to Baikuntha Nath Ghose and others by the order which the learned Magistrate made in the appeal on that date, that order became in fructuous because the two petitioners had taken delivery of the properties in pursuance of the notice which they had obtained from the police though they knew full well that a stay order had been made by the said learned Magistrate on 7th June 1933, prohibiting such delivery and that after taking delivery the properties had already been converted by the said petitioners to their own use. The learned Magistrate in the order which he made taking cognizance of the offence has expressly stated that “the petitioners must have acted dishonestly in taking delivery of the properties from the police on 7th July 1933 and converting them to their own use.”

6. In the explanation which the learned Magistrate has submitted in answer to this Rule he has emphasized the position that the fact that the stay order had been issued by him was known to the pleaders who were appearing in the case on behalf of the petitioners in his Court and he has further said that from such knowledge on the part of the pleaders, knowledge of the petitioners should be presumed. He has observed thus:

“The applicants knew of the stay order as early as 22nd June 1983 if not earlier and (that) in spite of such knowledge they afterwards disposed of the property in such a way as to make it impossible of being returned to the other party if the Additional District Magistrate would order such return.”

7. According to the learned Additional District Magistrate therefore the offence was committed before the order for return of the logs was made by him and consisted in this that inspite of the stay order and with knowledge thereof the petitioners had taken the logs and disposed of them. This, in our judgment, was not sufficient for constituting an offence of criminal misappropriation. Even though they may have been aware of the stay order there was the notice issued by the police, which in distinct terms called upon them to take delivery of the logs and threatened them with a forfeiture in case no delivery was taken. They were thus clearly justified in taking delivery of the logs. If after doing so they disposed of them, although they may have known that the question, as to whom they should be given, was pending consideration in appeal they can not be held guilty of criminal misappropriation. To found a case under S. 403, I.P.C it would be necessary to allege something more, and indeed Mr. Mukherjee who has appeared on behalf of Baikuntha Nath Ghose and others has himself seen the point. He has therefore placed considerable reliance upon a statement which is to be found in an affidavit which has been filed on behalf of his clients and which is to the effect that the properties were disposed of by the petitioners or converted by them to their own use after the Additional District Magistrate had made his order on 11th July 1933. This statement has been made in an affidavit the deponent whereof has stated that it is true to his information obtained on an inquiry which he held. He has not given the particulars of the inquiry or the source of his information. We express no opinion on the question whether a prosecution under S. 403, I.P.C would or would not be justified upon an allegation that even with knowledge of the order passed by the Additional District Magistrate on 11th July 1933 the petitioners converted the properties to their own use, because this does not seem to us to be the ground upon which the Additional District Magistrate has proceeded. His order appears to us to, be based on the fact that with knowledge of the stay order the properties had been taken delivery of by the petitioners and disposed of or converted in a manner which would make it impossible to restore them to others if an order to that effect was eventually passed. We are of opinion therefore that upon the materials on which the learned Additional District Magistrate has proceeded, such a prosecution would not be justified and cannot be allowed to proceed.

8. We accordingly make the rule absolute and quash the proceedings under S. 403, I.P.C against the two petitioners which have been started by the Additional District Magistrate under Section 190, Clause (1), sub-Clause (c) of the Cr PC. No. 1186 of 1933. In this case the aforesaid Baikuntha Nath Ghose and others have obtained a rule to show cause why the order made by the Additional District Magistrate on their application of 20th September 1933 should not be set aside and why the opposite parties, namely, the two petitioners in Revision Case No. 1051 of 1933 just disposed of should not be directed to bring into Court the value of logs for payment to the petitioners or why such other order or orders should not be made as to this Court may appear fit and proper. The order of the learned Additional District Magistrate which is complained of in this case runs in these words:

“The property ordered to be restored to Baikuntha Nath Ghose and others by the Additional District Magistrate on 11th July 1983 has already been converted to their own use by Nagendra Nath Sinha Sahas Boy and Nagendra Nath Das. No further action can be taken with regard to the property in a criminal Court. Baikuntha Nath Ghose and others should seek relief in civil Court about the matter.”

9. In support of this rule Mr. Mukerjee has contended that the criminal Court is not powerless in circumstances such as these to give an aggrieved party the remedy which he stands in need of. He has drawn our attention to the decision of the Special Bench of this Court in the case of Piggot v. Ali Muhammad Mandal . AIR 1921 Cal 30 and to the terms of Section 517 of the Cr PC as amended in 1923 and has argued that even though some of the logs have been used, up and the rest sold to others it is open to the criminal Court to compel the opposite parties to produce such properties as may be capable of production and also to produce the money equivalent of such properties as may be incapable of production. Without disputing for a moment the power which a criminal Court has got in this respect we think it will be highly inconvenient on the part of the Court now to launch upon an inquiry as to what happened to the logs, how much has been used up by the opposite parties in constructing their buildings and how much has been sold away and for what price. If it was possible from the record, as it is, to get any idea as to the value of the logs actually fetched at their sale or if any specific amount of money could be seized as representing such sale proceeds, such an order could, with propriety, be made by the Court. It has been pointed out to us that in a certain petition which the opposite parties made, they stated that the value of the logs would be Rs. 300 or so. Upon such a statement as that and without knowing what amount, if any, was actually fetched at the sale it would not be possible for the Court to make any order in petitioners' favour. If an inquiry is to be launched upon in order to ascertain the necessary particulars, there is every likelihood of such an inquiry to be not productive of any satisfactory result. We think the order which the learned Additional District Magistrate has made, advising the petitioners Baikuntha Nath Ghose and others to seek, relief in the civil Court, is the proper order to make in the circumstances of the case. Rule is discharged.

R.K

10. Rule discharged.