JETHSUR SURANGBHAI vs STATE OF GUJARAT

The Supreme Court held that the High Court's conviction of the appellant, Chairman of a cooperative society, was unjustified as the prosecution failed to prove the charge of conspiracy under Sections 120B and 109 IPC. The Court emphasized that in cases of serious defalcation, mens rea must be established, and without proof of collusion among the accused, the appellant could not be held vicariously liable for the actions of others. The appeal was allowed, and the acquittal of the appellant was restored, as there was insufficient evidence to connect him directly to the alleged acts of misappropriation.