In Brief
An elderly investor deposited Rs. 55,000 with a finance company for a fixed five-year term. When the company wound up and failed to refund the amount, he sought criminal prosecution for cheating, breach of trust, and conspiracy. The Supreme Court dismissed the appeal, holding that mere non-payment by a company in liquidation does not establish criminal dishonesty. As an unsecured creditor, his claim is governed by civil insolvency law, not criminal law. Though dismissing the criminal relief sought, the Court persuaded the ex-directors to compensate the appellant with Rs. 3,00,000 including interest."
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