HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT
JAIPUR
S.B. Criminal Revision Petition No. 334 / 2003
Yudhveer Singh S/o Shri Raghuveer Singh by Caste Yadav R/o
Ambedkar Circle, Krishna Colony, Alwar.
—-Petitioner
Versus
State of Rajasthan through Public Prosecutor
—-Respondent

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For Petitioner(s) : None present
For Respondent(s) : Mr. B.N. Sandu, Public Prosecutor
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HON’BLE THE CHIEF JUSTICE
Order
18/07/2017

1. Though none appears for the petitioner, having perused

the record I find that the petitioner took a loan from the

complainant-bank and at the time of the loan, executed a deed of

hypothecation in which machinery at the factory of the petitioner

was hypothecated. There was a default in re-payment of the loan.

The bank filed a complaint based whereon an FIR for offences

punishable under Section 420/406 IPC was registered. Charge-

sheet was filed. Charges for having committed offences punishable

under Section 420/406 IPC were framed against the petitioner.

Learned Magistrate acquitted petitioner for having committed an

offence punishable under Section 420 IPC but convicted him for

having committed an offence punishable under Section 406 IPC.

The reason was the testimony of the witnesses of the bank that

hypothecated machinery was removed. Appeal filed by the

petitioner has been dismissed vide order dated March 5, 2003.

(2 of 2)
[CRLR-334/2003]

2. It is settled law that for an offence punishable under

Section 406 IPC there has to be an entrustment. In case of

hypothecation there is no entrustment. The hypothecated goods

belong to the one who executes the deed of hypothecation. He

retains the possession of the goods.

3. This aspect has been overlooked by the learned

Magistrate and the learned Court of Sessions.

4. The petition is disposed of setting aside the impugned

judgments dated March 5, 2003 and November 6, 1999. The

petitioner is acquitted of the charge for having committed an

offence punishable under Section 406 IPC.

5. The bail bonds and surety bonds furnished by the

petitioner are discharged.

(PRADEEP NANDRAJOG),C.J.

KKC/2