taker, who is running a Regulated
deposit scheme and commit any fraudulent default in the
repayment or return of deposit on maturity or in rendering ... acts of deposit
taker of Regulated Deposit Scheme punishable, who commits
fraudulent default in the repayment or return of deposit on
maturity or in rendering
taker, who is running a Regulated
deposit scheme and commit any fraudulent default in the
repayment or return of deposit on maturity or in rendering ... acts of deposit
taker of Regulated Deposit Scheme punishable, who commits
fraudulent default in the repayment or return of deposit on
maturity or in rendering
attracted. It is his further
submission that there is no fraudulent default by the
members of the management of the society in repayment of
deposit ... KPIDFE Act, the prosecution has to
establish that the accused have fraudulently defaulted in
repayment of deposit on maturity along with benefit
Gururaghavendra Souharda Bank and Charan Co-operative
Bank. There is no fraudulent default in repayment of
deposit amount by this appellant/accused ... KPIDFE Act, the prosecution has to establish
that the accused have fraudulently defaulted in repayment
of deposit on maturity along with benefit in the form
three times the amount of profits made out of the
23
fraudulent default referred to in said section, whichever is
higher, or with both
realized.
15. On the other hand, Section 9 prescribes
punishment for fraudulent default by the financial
petitioners have not been declared wilful defaulters
or fraudulent borrowers. The issuance of the LOC violates their
rights under Articles 14 (freedom from arbitrariness ... petitioners are on bail;
• They have neither been declared as wilful defaulters
nor fraudulent borrowers;
• This Court has previously stayed criminal proceedings,
quashed
manner.
8. Section 9 of the Act, 2004 deals with the
fraudulent default by financial establishment.
9. In the instant case, the specific allegation against
Section 9 of the
said Act reads as under:
"9. Fraudulent default by
financial establishment:- Any
financial establishment, which
fraudulently defaults any repayment ... interest, bonus,
profit or in any other form as promised
or fraudulently fails to render service
as assured against the deposit, every
person including
prosecution has to establish in due course that
the appellants have fraudulently defaulted the repayment of
deposit in maturity along with any benefit
