Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | advocate |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Advocates Act, 1961: Sections 35, 36, 36-B, 38-Advocate-Professional misconduct-Allegations of defrauding and cheating aspirant loanees- Proceedings before State Bar Council and Bar Council of India- Findings of Disciplinary Committee that concerned advocate and financier being parties to racket defrauded aspirant loanee in receiving large sum of money on pretext of legal expenses and other incidental costs for advancing proposed loan-Punishment-Removal of name of advocate from Roll of State Bar Council Validity of. Bar Council of India-Disciplinary Committee-Proceeding against advocate-findings based on facts-Standard of proof required to establish. The appellant was an Advocate practising in Bombay. Respondent No.1 (the complainant) made a complaint to the Bar Council of Maharashtra alleging professional misconduct against the appellant. His case was that he was a proprietor of a firm engaged in a business of manufacturing. He was in need of financial accommodation and a financier impressed upon him that on examination of his papers by a solicitors' firm run by the appellant, he would be given loan. He was also told that the appellant was also one of the investors. The complainant on such representation agreed to get loan through the financier. On inspection of properties of the complainant the financier told him that a loan upto Rs.7 lakh would be advanced to him provided he would pay at the rate of 5-1/2% on the advance of amount of loan towards legal and other expenses. In a meeting held at the residence of the appellant in connection with the proposed loan the appellant told the complainant that he was an advocate of a certain firm and he worked only for the genuine financiers and would look to the interests of the loan seekers. He also told that he was himself a member of the internal group of the financiers. The appellant induced the complainant to part with certain money for legal expenses and informed him that out of 5-1/2% of the amount of loan required to be paid by him by way of legal expenses. the appellant would keep 3-1/2% for the stamp duty payable to the Government. He also told that the disbursement could be expedited only if the complainant paid cash to the financier before certain date. On the stipulated date the complainant paid Rs.25,000 to the financier. He also paid the balance of Rs.13,500 to the appellant. ThereĀ· after the appellant made all attempts to delay the disbursement and asked the complainant to pay Rs.10,000 more which the latter paid. However, the proposed loan was not disbursed and instead of it, the financier made a complaint against the complainant in the Social Security Branch. The complainant made a complaint to the CID Branch of Bombay Police against the financier and the appellant. The financier was chargesheeted. On the advice of the police the complainant made an application to the Maharashtra Bar Council. He also alleged that the appellant had indulged in fraudulent activities in respect of other persons and attached a list of witnesses to the complaint. The appellant challenged the proceedings before the High Court, but the Writ Petition was dismissed and the proceedings before the State Bar Council continued. The complaint before the State Bar Council could not be disposed of within the statutory period and the case stood transferred to the Disciplinary Committee of the Bar Council of India. Meanwhile the financier died. The Disciplinary Committee analysing the evidences dispassionately and considering the affidavits filed on behalf of both the parties as also the affidavits filed by some witnesses alleging that they had also become the victim of fraudulent action and cheating by the financier and the appellant, held that there was a racket for defrauding and/or cheating to aspirant loanees, and the financier and the appellant-advocate. were. parties to such racket; that the appellant in connivance with the financier defrauded the complainant in receiving large sum of money on the pretext of legal expenses and other incidental. costs for advancing the proposed loan to the complainant, but such loan was never advanced to him; that the appellant had received Rs.10,000 from the complainant; that a case of professional misconduct under section 35 of the Advocates Act had been established against the appellant. The Committee, therefore, ordered the name of the appellant to be removed from the State Roll of the Bar Council of Maharashtra. In the appeal to this Court, it was contended on behalf of the A appellant that he had no role in the matter of alleged fraudulent activities of cheating by the financier and/or some other persons as he was engaged by the financier for preparing the document of mortgage after inspection of records of the complainant for advancing the proposed loan and he had only rendered the professional service as an advocate in a fair and proper manner; that the appellant had only received hie professional fees from the financier and did not receive any amount from the complainant; that the finding of the Disciplinary Committee that the appellant had been a member of the racket and had taken part in defrauding and cheating the complainant was based on surmises and conjectures; and that the Disciplinary Committee committed a grave error in law in considering the evidence of witnesses who were total strangers to the case of alleged fraud and cheating. |
Judge | Hon'ble Mr. Justice G.N. Ray |
Neutral Citation | 1992 INSC 119 |
Petitioner | Devendra Bhai Shankar Mehta |
Respondent | Rameshchandra Vithaldas Sheth And Anr. |
SCR | [1992] 2 S.C.R. 687 |
Judgement Date | 1992-04-22 |
Case Number | 4437 |
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