In Brief
The appellants, officers of Exide Industries Limited (EIL), were prosecuted for allegedly misappropriating and cheating in relation to a security deposit of ten lakhs made to Standard Batteries Limited (SBL). After acquiring SBL's business, EIL executed an indemnity deed explicitly stating it would not assume liabilities not mentioned therein. The security deposit was never received by EIL and no liability for its refund was transferred. The Court quashed the criminal complaint, holding that EIL and its officers had no involvement with the deposit and bore no legal responsibility for its non-refund, which remained SBL's obligation.
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