Fact of the case :

In 1946, Ram Narain a business man residing in Multan district took a loan of Rs. 3 Lakhs from the Central Bank of India. He has submitted 802 bales (large bundle of goods) of cotton as collateral (security for repayment) against the loan to the bank. The bank put those bales in a godown located nearby. 

On 15 August 1957, the partition took place and the nation was divided into two separate nations namely India and Pakistan. Due to this incident the attendant of the godown where the cotton bales were kept left the place in the hands of the cashier. After sometimes the cashier also had to leave that place in October, 1947. Consequently no one was there to defend the godwon after October 1947.

In January 1948, an agent of the bank visited the godown and found that stocks were missing from the godown. On inquiry, he found that 802 cotton bales have been stolen by Ram Narain himself in November 1947 and was sold at a value of Rs. 1,98,702. During the partition, the amount due to the bank from Narain was around Rs. 1,40,000, exclusive of interest, while the value of goods was approximately Rs. 1,90,000.

When the notice of theft came to the bank, they demanded money from Ram Narain but no response was received. Ram Narain has already sent his family to India as during that time Hindu and Sikhs were becoming victim of violence. Later, Ram Narain also came to India and started business in Hodel, nearby place of Gurgaon. Central Bank of India filled a suit against him. State initiated the suit and was brought to the District Magistrate, Gurgaon where Narain told that at the time to supposed occurrence, he was a national of Pakistan and subsequently the East Punjab Government was not competent to grant sanction for his prosecution.

Issue Involved

To what extent, Indian jurisdiction apply?

Whether Ram Narain had Indian domicile at the time of the commission of the offence?

Even after hearing contention, the Magistrate initiated the suit against him. Then the case was brought to the session court, Gurgaon and there also judgement was delivered against Ram Narain. Narain filed an appeal in the High Court which was at that time Simla. High Court giving its decision in favour of Ram Narain stating that the said incident took place after the partition of 1947 and the godown was situated in the part of Pakistan and not in India. So, there is no jurisdiction of Indian courts over this case, as Ram Narain was not a citizen of India when the said incident of theft took place.

HELD : Section 4 of IPC (Section 1(5) of BNS) is applicable to Indian and since the offence occurred outside the boundary of India and also the appellant was not a citizen of India, so no trial was initiated against him and at last the appeal got dismissed.