Decided on November 27,1968



- (1.) An institution styled the "Cooperative for American Relief Everywhere" known by the name "CARE" has its headquarters in Delhi, and branches in various States in India. The object of the institution is to distribute gift articles donated by the American citizens to the needy and poor in India. Distribution of articles is carried out by the Regional Directors of Food Supplies in the various States. The Branch office of CARE in Madras distributes articles through recognized social organisations. The articles are entrusted to the organisations under an assurance of their due application from the person to whom the articles are entrusted for distribution. The organisation to which the articles are entrusted for distribution has to furnish a written assurance in , a prescribed form, with an undertaking to distribute the articles amongst the poor and to furnish a distribution plan of the manner of distribution of articles and also a certificate regarding distribution.
(2.) One R. Sreenivasan was the Manager of the Madras Branch of CARE. The appellant approached Sreenivasan in August 1960 and represented to him that he had taken up charge as Honorary Secretary of the Kerala Sarvodaya Samithi in Thiruvangad, Tellicherry hereinafter called 'the Samithi' and that it was an organisation established for rendering social service and he requested Sreenivasan to arrange for supply of gift articles from the CARE to the Samithi for distribution amongst the poor people of the area which was served by the Samithi. The appellant signed an assurance form on August 16, 1960, undertaking to distribute the articles entrusted to him on behalf of the Samithi.
(3.) Sreenivasan recommended that the name of the Samithi be placed on the list of approved organisations for supply of articles to be distributed by CARE. Out of a consignment of milk powder received by CARE in November 1960, 200 cartons were allotted to the Samithi for distribution. Sreenivasan arranged to despatch those 200 cartons to the Samithi. The cartons were sent by rail from Madras to Tellicherry, and the railway receipt was sent to the appellant by registered post. The appellant received the Railway Receipt at Tellicherry on January 9, 1961, and arranged to release the consignment on the same date. He furnished a distribution plan and a certificate of distribution. In March 1961 the CARE received another consignment of milk powder and according to instructions received from Delhi 200 cartons of milk powder were allotted to the Samithi. The consignment was sent from Madras to Tellicherry by rail and the railway receipt was sent to the appellant by registered post. The appellant received the consignment and submitted a certificate of distribution in May 1961. But he sold 100 cartons out of this consignment to one Mohammad Sali of Cannanore for Rs. 12,000/-. One K. Kelappan, Chairman, Kerala Sarvodaya Mandal, having received information that the articles allotted by CARE were being received in the name of a non existent Samithi and were being sold in the market, addressed a letter on May 15, 1961, to the Director of CARE in India, New Delhi. The Director sent the information to the Superintendent, Crime Branch, Trivandrum.;

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