GUHA RAY,J. - (1.) THE two petitioners Rameswar Tantia and Gobardhandas Binani, the General Secretary and the Vice -President, respectively, of the Marwari Relief Society which is a society incorporated under the Indian Companies Act of 1913 were convicted Under Section 282 B of the Indian Companies Act and sentenced each to pay a fine of Rs. 25/ - each or in default to simple imprisonment for a week,
(2.) THE case for the prosecution briefly is that the complainant Mahabir Prasad Surekha, was appointed a salesman under the Rasayansala Department of the Society under Ex. 3 which is dated the 23 -4 -1953. One of the terms of this appointment was that the employee will have to deposit a cash security of Rs. 500/ - on which he was to get 6 per cent. annual interest so long as the amount Would be kept in deposit with the Society and so long as the employee would continue in the service of the Society. Towards the end of the letter of appointment occurs the following paragraph. You will do only Society's work under orders from the office and you will not do any part time work etc. Otherwise Society will have the right to dissociate you without any previous notice and not pay you any sort of compensation. In such event Society will realise the loss done by you from you. On the 18 -2 -1955, the complainant was dismissed by the Society. It also appears from Ex. 1 which is a letter from the Attorney of the Society to the complainant that the Society was claiming certain amounts from the complainant on account of his having sold medicines etc. and misappropriated the sale -proceeds. In the letter occurs the following sentence. These facts having come to our clients' knowledge, they terminated your service by notice in writing dated 13 -2 -55 and called upon you to pay the sum of Rs. 1,228/15/6 which according to our clients then appeared to be due after adjusting your salary amount as also the sum of Rs. 500/ - deposited by you as cash security as one of the conditions of service.
(3.) THE complainant also demanded from the Society certain amounts including the money he deposited as cash security and the allegation against the Society is that it has not kept the complainant's cash security in any special account of any scheduled bank as enjoined by Section 282 B of the Indian Companies Act, The defence was a plea of not guilty. Several contentions were raised on behalf of the defence and they will appear from the judgment as I proceed.;