M. G. AGARWAL vs STATE OF MAHARASHTRA

The Supreme Court addressed the appeal against acquittal under Section 120B IPC, emphasizing that the High Court's powers under Section 423(1)(a) of the Code of Criminal Procedure are extensive but must respect the presumption of innocence established by the acquittal. The Court clarified that a conviction can be based on circumstantial evidence if it is wholly inconsistent with the accused's innocence. The judgment of the High Court convicting the appellants was upheld, establishing that the inference of guilt must be drawn from facts that are inconsistent with innocence.