JASWANTRAI MANILAL AKHANEY vs THE STATE OF BOMBAY.

The Supreme Court upheld the conviction of the Managing Director of a bank under Section 409 IPC for criminal breach of trust, ruling that the absence of an overdraft by the pledgor meant the pledgee bank had no legal interest in the pledged Government Promissory Notes. The Court clarified that the pledgee bank acted as a trustee and had no right to deal with the securities, leading to wrongful loss for the pledgor. The Court emphasized that mens rea is a critical element in determining the nature of the offence, and the appeal was dismissed.