Case Note & Summary
The appellant challenged the judgment of the Special Court which directed him to pay Rs. 2,83,192/- with interest to the Custodian. The appellant's father was the Chairman of M/s. Fair Growth Financial Services Limited, which placed an order for a Mahindra Jeep on behalf of the appellant. The vehicle was delivered after the father's death, and the appellant became a director of the company. The Custodian found that the vehicle was financed by the company and that the appellant was aware of the transaction. The Special Court allowed the Custodian's application, leading to the appeal. The appellant argued that he had no knowledge of the transaction at the time of payment. However, the court found sufficient evidence indicating the appellant's involvement and upheld the Special Court's order, modifying the interest rate from 18% to 9% per annum. The amount already deposited by the appellant was to be adjusted against the final payment. The appeal was disposed of with these modifications.
Headnote
A) Special Court Jurisdiction - Powers of Custodian - Authority to Direct Payment - Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, Section 3 - The Special Court found that the appellant was aware of the transaction involving the vehicle purchased on hire purchase and directed payment to the Custodian. The court upheld the Special Court's order but modified the interest rate from 18% to 9% per annum. (Paras 15-15).
Issue of Consideration
Whether the appellant was liable to pay the amount directed by the Special Court and the applicable interest rate.
Final Decision
The Supreme Court upheld the Special Court's order for payment but modified the interest rate from 18% to 9% per annum, directing that the amount payable by the appellant shall be calculated accordingly and adjusted against the amount already deposited.
Law Points
- Special Court (Trial of Offences Relating to Transactions in Securities) Act
- 1992
- Custodian's powers
- hire purchase agreement
- interest modification
