creates an offence in respect of a fraudulent default in the repayment of a deposit on maturity and provides for imprisonment upto six years ... fine. Section 3 is as follows :
"3. Fraudulent default by Financial Establishment. - Any Financial Establishment, which fraudulently defaults any repayment of deposit on maturity
submit that the petitioner has committed offence of cheating, forgery
and fraudulent default as per the materials collected by the
prosecution, which prima-facie establishes ... whether petitioner's act will fall
within the definition of fraudulent default to attract provisions of
Section
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
Section 3 of TPID Act provides as under:-
"Conviction for Fraudulent default-
3. Any Financial Establishment which (i) fraudulently defaults any
repayment of deposit ... same when needed, shall be deemed to
have committed a default fraudulently or Failed to render specific
service fraudulently.
15. Section 406 of IPC prescribes
offence can be said to be committed when the Financial
Establishment fraudulently defaults in repayment of
deposit on maturity along with any benefit ... Section 3 of the Act of 1999 reads as follows :-
3. Fraudulent default by Financial
Establishment
Any Financial Establishment, which
fraudulently defaults any repayment
defines ‘financial
establishment’. Section 2(i) defines ‘fraudulent default’. The same reads
thus:
“Fraudulent default” means any financial establishment, which
fraudulently defaults any repayment ... punishment for defaults by
financial establishment. Section 10 reads thus:
“Punishment for defaults by financial establishment–
Where any financial establishment fraudulently defaults or any
financial
clutches of financial establishments, who have committed a deliberate and fraudulent default in repayment of the principal and the interest after maturity, and to provide ... money should come back to the depositors and the fraudulent defaults should be rectified by such attachment, auction sale and realization.
6.12. Alternatively
deposits, in the repayment of which, the petitioner committed default
fraudulently, within the mischief of section 3 of the MPID Act. First and
foremost ... corporate
deposits in the repayment of which the company has committed default
fraudulently. Secondly, the amounts which do not fall within the purview
Shraddha Talekar
other
person or an employee of the Financial Establishment for
fraudulently default in any repayment of deposits on
maturity along with other benefits.
Clause ... 2018 JUDGMENT
13. Section 3 of the Act, 2003 makes the fraudulent defaults
by the Financial Establishment an offence punishable with
imprisonment for a term
