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of <h1>High Court Convicts Devender Singla for Cheating, Supreme Court Upholds Verdict</h1> Devender Kumar Singla was convicted of cheating under Section 420 IPC by the High Court and the Supreme Court upheld this conviction, reducing his ... - Issues Involved:1. Conviction of Devender Kumar Singla under Section 420 IPC.2. Acquittal of Mala Singla under Section 420 IPC.3. Determination of wrongful gain and wrongful loss.4. Validity of the transaction date.5. Evidentiary value of the receipt and delivery of shares.6. Stoppage of payment and its implications.7. Custodial sentence imposed on Devender Kumar Singla.Detailed Analysis:1. Conviction of Devender Kumar Singla under Section 420 IPC:The High Court found Devender Kumar Singla guilty of cheating under Section 420 IPC. The court noted that Devender had assured the complainant of payment via a cheque, which was later dishonored. The receipt executed by Devender indicated that he had received the shares. The High Court concluded that the essential ingredients of Section 420 IPC, including cheating and dishonest inducement, were established. The Supreme Court upheld this conviction, noting that the receipt and the circumstances indicated that Devender had indeed received the shares.2. Acquittal of Mala Singla under Section 420 IPC:The High Court acquitted Mala Singla, noting discrepancies in the accounts given by her and Devender. Mala claimed she had signed blank cheques and later stopped payment when she found the cheque book missing. The High Court observed that her involvement in the transaction was not sufficiently established. The Supreme Court agreed, noting that Mala's presence at the transaction was not proven and that the cheque was handed over by Devender, not her.3. Determination of wrongful gain and wrongful loss:The defense argued that wrongful gain and wrongful loss, essential elements of Section 420 IPC, were not established. However, the High Court found that the dishonored cheque and the receipt indicating share delivery evidenced wrongful loss to the complainant and wrongful gain to Devender. The Supreme Court concurred, emphasizing that the receipt and the circumstances supported the conclusion of wrongful gain and loss.4. Validity of the transaction date:The trial court had doubted the transaction date, stating it occurred on 27th July 1992, not 7th August 1992 as claimed by the complainant. The High Court, however, noted there was no suggestion during cross-examination to support the earlier date. The Supreme Court upheld this view, stating that the absence of such a suggestion during cross-examination could not be rectified by the accused's statement under Section 313 Cr.P.C.5. Evidentiary value of the receipt and delivery of shares:The High Court placed significant weight on the receipt executed by Devender, which stated that the shares had been delivered. The defense's argument that the receipt was an advance receipt was not raised during the trial. The Supreme Court noted that the complainant's inability to recall the number of shares did not undermine the receipt's evidentiary value. The receipt was deemed credible evidence of share delivery.6. Stoppage of payment and its implications:The High Court found the stoppage of payment on 1st August 1992, before the alleged transaction date, suspicious. Devender's explanation that shares were to be delivered by 5th August 1992 did not justify the early stoppage. The Supreme Court agreed, noting that varying explanations for the stoppage further weakened the defense's case.7. Custodial sentence imposed on Devender Kumar Singla:The High Court sentenced Devender to one year of imprisonment and a fine of Rs. 10,000. The Supreme Court found the custodial sentence slightly excessive given the case's peculiar circumstances and reduced it to three months, maintaining the conviction.Conclusion:The Supreme Court upheld the High Court's judgment, convicting Devender Kumar Singla under Section 420 IPC but reducing his sentence to three months. The acquittal of Mala Singla was also upheld, as her involvement in the fraudulent transaction was not sufficiently proven.
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