In Brief
A C&F agent of M/s Standard Batteries Limited (SBL) deposited Rs 10 lakhs as security. When SBL was acquired by M/s Exide Industries Limited (EIL) via slump sale in 1997, an indemnity deed stipulated SBL remained liable for unmentioned matters. The agent later complained against EIL officers for non-refund of the deposit under criminal breach of trust, cheating, and conspiracy charges. The Supreme Court held that since the deposit was made only to SBL, EIL neither received it nor assumed the liability under the indemnity deed. Criminal proceedings against EIL officers were therefore unjustified and quashed."
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