Case Note & Summary
The dispute arose between an uncle and his nephew regarding the sale of shares. The complainant, aged 85 and an architect, entrusted 1200 shares of Great Eastern Shipping Company Limited to the accused for sale, expecting the proceeds to be returned. After a prolonged lack of communication and inquiries, the complainant discovered that the shares had already been sold without his knowledge. Consequently, he filed a criminal complaint under Section 409 of the Indian Penal Code for criminal breach of trust against the accused. The complaint was filed on 13th April 1994 before the Special Court, which issued summons and framed charges against the accused. The accused challenged the jurisdiction of the Special Court, arguing that he was not a notified person under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992. The Special Court ruled that it had jurisdiction to try the case, leading to the present appeal. The Supreme Court examined the statutory framework of the Act, particularly Sections 3 and 7, which outline the jurisdiction of the Special Court. The court concluded that the Special Court could try offences related to transactions in securities even if the accused was not a notified person, as long as the offence occurred within the specified timeframe. The court dismissed the appeal, affirming the Special Court's jurisdiction to entertain and try the case against the appellant.
Headnote
A) Criminal Law - Jurisdiction of Special Court - Special Court's jurisdiction to try offences relating to transactions in securities - Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, Sections 3, 7 - The court held that the Special Court has jurisdiction to try offences under the Act even if the accused is not a notified person, provided the offence relates to transactions in securities during the specified period. The court emphasized that the jurisdiction does not depend solely on the notification status of the accused but on the nature of the offence committed (Paras 8-9).
Issue of Consideration
Whether the Special Court has jurisdiction to entertain and try the criminal case filed against the appellant-accused under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992.
Final Decision
The Supreme Court dismissed the appeal, affirming the jurisdiction of the Special Court to try the case against the appellant under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992.
Law Points
- jurisdiction of Special Court
- criminal breach of trust
- transactions in securities
- Special Court (Trial of Offences Relating to Transactions in Securities) Act
- 1992
