(ii)The judgment of the Hon'ble Supreme Court reported in Subbammal alias Rajammal and others v. The President, The Tenkasi Co-operative Urban Bank, Ltd. Tenkasi (in liquidation) through its Special Officer, having its office at Kokirakulam, Tirunelveli[1976 SCC Online Mad.122] cited by the learned Senior Counsel appearing for A1 is a general observation regarding trust in business. The facts of the case above cited, a Clerk in the Co-operative Society has misappropriated the fund wherein Ex-President and Vice President were also arrayed as accused. The High Court has found that breach of trust not proved against the Ex-President and Vice-President and at the most there is only wilful negligence. In this context, the High Court has referred the following observation made by the Court of Appeal in re National Bank of Wales Ltd. “Business cannot be carried on upon principles of distrust. Men in responsible positions must be trusted by those above them as well as by those below them until there is reason to distrust them. We agree that care and prudence do not involve distrust, but for a direction honestly himself, to be held legally liable for negligence in trusting the officers under him not to conceal from him what they ought to report to him, appears to us to be laying too heavy a burden on honest businessmen”, there cannot be any second opinion regarding the above said observation but for the facts of the case in hand has no relevancy.
