James, J. - (1.) Nadir Ali Barq Zaidi, Abdul Hamid Khan, Wajid Ali, Pritam Singh, Shujat Ali Khan Rahher, Tulsi Das and Abdul Majid Khan were tried before the Additional Sessions Judge of Moradabad for offence which fell under three main heads: first, that during the period the l5th June 1952 to the 2nd August 1952 they along with some persons unknown were party to a criminal conspiracy to commit the offence of cheating in the towns of Moradabad and Chandausi and were thereby guilty of an offence punishable under Section 120B I.P.C., second, that in pursuance of the conspiracy aforesaid they opened a firm entitled "Bharat Helpers" and by making false statements, misrepresentation of facts, suppression of material particulars and other subtle devices dishonestly and fraudulently induced many members of the public to deliver various sums of money to them, in particular 26 named individuals, and were thereby guilty of an offence under Section 420 I. P. C. and third, that having been entrusted by various members of the public with sums of money they committed criminal breach of trust with respect to a sum of Rs. 11,701/10/9 out of the total amount entrusted, and were thereby guilty of an offence under Section 409 I.P.C. The learned Judge found the charges not proved against Pritam Singh and Tulsi Das and hence acquitted them. He found the remaining five accused persons guilty of all the offences, with regard to the charge under Section 409 I.P.C. holding that they had committed breach of trust with respect to Rs 6,795/11/9 only. He sentenced each of them to two years' rigorous imprisonment under Section 120B and to a similar term under Section 409. For the cbaige under Section 420 he held that Nadir Ali, Abdul Hamid and Wajid Ali were the principal offenders and accordingly awarded them each three years' rigorous imprisonment and a line of Rs. 1,500/-. He considered that the part played by Shujat Ali and Abdul Majid was not so prominent, and therefore for the offence under Section 420 awarded them each two years' rigorous imprisonment and a fine of Rs. 1,500/-. In each case the imprisonment was directed to be concurrent. Nadir Ali, Abdul Hamid, Wajid Ali and Shujat Ali have preferred the present appeal against their conviction and sentences, while Appeal No. 535 of 1957 is by Abdul Majid. The appeals originally came up for hearing before the Hon'ble A. N. Mulla, J. who was of opinion that in view of the gravity of the appellant's offences the sentences awarded were inadequale; he therefore issued notice to them to show cause why these be not enhanced. The two appeals and the enhancement notice are before us for disposal.
(2.) At the very outset We would like to pay tribute to the trial judge for preparing a detailed judgment in which the voluminous oral and documentary evidence on the record has been thoroughly examined, classified and analysed, and definite findings given on the numerous issues that the trial raised. His judgment has been of great help to us in deciding these appeals.
(3.) It is common ground that on the 15th June 1952 a partnership firm entitled "Bharat Helpers" v/as formed with its head-office in Moradabad town. The appellants Nadir AH and Abdul Hamid, who it should be noted are residents of Rampur, were its disclosed partners. On their application the firm was registered with the Registrar of Firms, Lucknow, on the 10th July, 1952. It appears that e;ich disclosed partner contributed a mere Rs. 500/- towards the capital of the firm. Subsequently two branches were opened in the town of Chandausi district Moradabad, one called the "Gate Branch" and the other the "Sarai Kham Branch". The prosecution allege that the appellant Wajid Ali, who is the uncle of Nadir Ali, was also a partner of the firm and was placed in ever-all charge of the business in Chandausi. while Nadir Ali and Abdul Hamid managed the head-office at Moradabad and also exercised general supervision over the branches in Chandausi. The prosecution further state that Shujat Ali was appointed the Manager of the two Chandausi Branches though he worked mostly at the Gate Branch, and that Abdul Majid was the person in immediate charge of the Sarai Kham Branch. Indeed this Branch was housed in his own place of residence.;