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Though several contentions had been raised before the Special Court, it is unnecessary to advert to the same. All that we need to examine in this case is whether the defence taken by the appellant would amount to contempt of court.

In this case, the false statement alleged is as under :-

"5(e) On 27th May 1991, the 1st defendant, in the course of their investment business, had purchased certain securities being 11.50% GOI 2008 securities of the aggregate face value of Rs. 58.39 crores from the Bank of Karad Ltd., Hiten Dalai had acted as a broker in this transaction. The said Bank of Karad Ltd., in order to effect transfer of the said securities to the first Defendant issued its combined SGL transfer from authorising the Reserve Bank of India to operate its SGL account and transfer and assign the said securities to the SGL account of the 1st Defendant. In consideration of the said securities purchased by the 1st Defendant, the 1st defendant issued their cheque dated 27th May, 1991 bearing No. 160319 in favour of the said Bank of Karad Ltd. for the sum of Rs. 58,90,16,042.44 being the cost of the said securities of face value Rs. 58.39 crores and the amount of interest accrued thereon up to 27th May 1991.
(f) On 29th May, 1991, the 1st Defendant lodged the said SGL transfer forms for 11.50% GOI 2008 securities of face value of Rs. 58.39 crores issued by the Bank of Karad Ltd., with Reserve Bank of India, Public Debt Office, for clearance. On 29th May, 1991, the Reference Bank of India returned the said SGL transfer form issued by the Bank of Karad Ltd. on account of insufficient balance. On 31st May, 1991, the said SGL transfer form was again presented to the Reserve Bank of India for clearance but was again returned for want of insufficient balance.
(g) The 1st Defendant thereafter handed over the said SGL transfer form for 11.50% GOI 2008 securities of face value Rs. 58.39 crores issued by the Bank of Karad Ltd. to the broker Hiten Datal sometime in July 1991 for rectification and replacement by a fresh SGL transfer form of the said Bank of Karad Ltd.
(h) During the period 1991 August to December 1991, the 1st defendant in the course of their investment business, entered into three sale transactions whereunder the 1st defendant sold 11.5% GOI 2008 securities to the plaintiff, particulars whereof are as follows :

(i) The 1st defendant say that the SGL transfer form issued by the Bank of Karad Ltd. for Rs. 58.39 crores for 11.50% GOI 2008 securities had remained outstanding till December 1991. The 1st defendant had made enquires with Hiten Dalai in respect of the said SGL transfer forms issued by the Bank of Karad Ltd. and which had been returned to Hiten Dalai in July 1991 for rectification and replacement. On enquiry, Hiten Dalai informed the 1st defendant that since there were sale transactions outstanding for the same security between the plaintiff and the 1st defendant in the sum of Rs. 43 crores and Rs. 10 crores, the 1st defendant transactions with the plaintiff to the extent of Rs. 59.39 crores would be squared off and delivery of all the security would be directly transacted and adjusted between the Bank of Karad Ltd. and the plaintiffs. He advised the 1st defendant, he would directly deliver to the plaintiffs fresh SGL forms for that amount issued by the Bank of Karad Ltd. to the plaintiffs and would return to the defendant, three transfer form of Rs. 43 crores, Rs. 10 crores and 7 crores issued in favour of the plaintiffs and the 1st defendant transaction with the Bank of Karad Ltd. and the plaintiff would stand squared off and 1st defendant would remain liable for securities of only the balance of Rs. 1.61 crores.