The most famous incident of this method of dismissal involved the Indian bowler Vinoo Mankad. It occurred during India's tour of Australia on 13 December 1947 in the second Test match at Sydney. Mankad ran out Bill Brown when, in the act of delivering the ball, he held on to it and whipped the bails off with Brown well out of his crease. This was the second time Mankad had dismissed Brown in this fashion on this tour - he had done it in an earlier match against an Australian XI. On that occasion he had warned Brown once before running him out. The Australian press strongly accused Mankad of being unsportsmanlike, though some Australians, including Don Bradman, the Australian captain at the time, defended Mankad's actions. Instances of bowlers running batsmen out this way in first class cricket date back to the nineteenth century. But after this incident, if a batsman is given out this way, he is said to have been Mankaded.
Source : Wikipedia