Breach of Trust - The Legal Chamber

Supreme Court Clarifies Law on Seized Property, Says “Expediency” Under CrPC Has Limits

9Nov

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Clarifies Law on Seized Property, Says “Expediency” Under CrPC Has Limits

The Supreme Court held that the release of case property (cash) under Section 451 CrPC was premature. The ownership of seized money, being the proceeds of alleged crime with multiple claimants, cannot be determined conclusively at an interim stage but must be adjudicated after a full trial upon consideration of all evidence. Facts Of The Case: The case originated from an FIR (CR No. 11206078220159 of 2022) alleging that the appellant-accused, through his proprietary firm Jay Gopal Trading Company, committed cheating and criminal breach of trust against a complainant and other merchants in transactions involving castor seeds. During the investigation, the police seized cash amounting to Rs. 50,00,000. Respondent No. 2, another merchant claiming the seized cash was for goods he sold to the...

Supreme Court Rules: Conspiracy Can Be Proven by Conduct, Not Just Direct Evidence

The Supreme Court upheld the conviction under Section 120B IPC, ruling that criminal conspiracy can be inferred from circumstantial evidence and the accused's conduct. The court affirmed that prior exoneration in a police report does not bar trial courts from summoning an accused under Section 319 CrPC if trial evidence reveals complicity. Facts Of The Case: An Assistant Superintendent of Jail accompanied two Head Constables escorting an undertrial prisoner from Ludhiana to a court in Talwandi Sabo. After the hearing, the official persuaded the constables to return in a private Tata Qualis instead of the bus. Unknown to the officers, two unidentified individuals were already seated in the rear. During the journey, the official had the vehicle stopped on a pretext. At that moment, the two...

When a Society Becomes a “Trust”: Supreme Court’s Landmark Ruling on Mismanagement in Charitable NGOs

The Supreme Court ruled that a society registered under the Societies Registration Act, 1860, can be construed as a constructive trust under Section 92 CPC if it is created for public charitable purposes and its properties are held in a fiduciary capacity. This allows aggrieved parties to sue for breach of trust and seek remedies like a scheme for administration. Facts Of The Case: In 2005, Operation ASHA, a society registered under the Societies Registration Act, 1860, was established to provide healthcare services, particularly tuberculosis treatment, to underprivileged sections of society. A dispute arose in 2020 when its co-founder and CEO, Sandeep Ahuja (Respondent No. 3), terminated the services of another co-founder, Dr. Shelly Batra (Respondent No. 1), alleging misrepresentation ...