Holding

An order framing charge is not a pure interlocutory order; consequently, the High Court may entertain a challenge under Section 397, Section 482, or Articles 226/227 in rare cases, but any stay must be narrowly limited to prevent undue delay.

Summary

The petitioners, Asian Resurfacing of Road Agency and others, challenged the order of charge framed by a Special Judge under the Prevention of Corruption Act, 1988, alleging that it was an interlocutory order barred by Section 19(3)(c) of the Act and by Section 397(2) of the CrPC. The Supreme Court examined whether such an order could be reviewed under Section 397, Section 482 of the CrPC, or Articles 226 and 227 of the Constitution, and interpreted the phrase "on any other ground" in Section 19(3)(c). It held that the order of charge is not a pure interlocutory order and that the High Court retains jurisdiction to entertain challenges in rare, exceptional cases, though any stay must be narrowly tailored to avoid delaying trial. The Court clarified that Section 19(3)(c) does not preclude petitions under Section 482 or constitutional writs, but stays of proceedings are generally prohibited except where a failure of justice is shown. It further directed that any stay granted should normally be limited to two‑to‑three months, with an automatic lapse after six months unless a speaking order extends it. The appeals were disposed of in accordance with this reasoning, affirming the High Court’s limited jurisdiction to review charge‑framing orders.

Issues considered

Whether an order framing charge under the Prevention of Corruption Act, 1988 is an interlocutory order within the bar of Section 19(3)(c).
Whether Section 19(3)(c) bars the exercise of revisional jurisdiction under Section 397(2) of the CrPC and the inherent power under Section 482 of the CrPC.
Whether a petition under Articles 226 and 227 of the Constitution can be entertained against an order of charge.
Interpretation of the expression "on any other ground" in Section 19(3)(c).
The scope and limits of the High Court’s inherent powers in corruption cases and the appropriate duration of any stay of proceedings.

Legislation cited

Anti‑Corruption Laws (Amendment) Act, 1964
Code of Criminal Procedure, 1973s. 397(2), s. 401, s. 482
Constitution of Indias. Article 21, s. Article 215, s. Article 226, s. Article 227
Criminal Law Amendment Act, 1952
Prevention of Corruption Act, 1988s. 19(3)(c), s. 22, s. 27, s. 4(4)
Special Courts Act, 1979s. 11

Subjects

Prevention of Corruption Actinterlocutory orderrevisioninherent powersSection 19(3)(c)Section 397Section 482Article 226Article 227speedy trialstay of proceedings

Judgment

[2018] 2 S.C.R. 1045 1045

ASIAN RESURFACING OF ROAD AGENCY PVT. LTD. & ANR. A
v.
CENTRAL BUREAU OF INVESTIGATION
(Criminal Appeal Nos. 1375-1376 of 2013)
MARCH 28, 2018 B
[ADARSH KUMAR GOEL, R. F. NARIMAN AND
NAVIN SINHA, JJ.]
Prevention of Corruption Act, 1988: s.19(3)(c) – Interpretation
of – Order framing charge under the 1988 Act – Challenge to –
C
Jurisdiction of High Court and power to grant stay in such
matters – Whether an order on charge framed under the provisions
of 1988 Act, is an interlocutory order, and thereby in view of
s.19(3)(c), exercise of revisional power of High Court u/
s.397(2),CrPC is barred – Also whether s.19(3)(c) which bars
revision would also bar exercise of inherent power of High Court D
u/s.482, CrPC or u/Arts.226 and 227– Held: Per A. K. Goel, J. (for
himself and Navin Sinha, J.) Order framing charge is not purely an
interlocutory order nor a final order– Jurisdiction of High Court is
not barred either u/s.397 or u/s.482, CrPC or u/Art.227 of the
Constitution – However, the said jurisdiction is to be exercised
E
consistent with the legislative policy to ensure expeditious disposal
of a trial without the same being in any manner hampered – Thus,
challenge to an order of charge should be entertained in a rarest of
rare case only to correct a patent error of jurisdiction and not to
re-appreciate the matter – Even where such challenge is entertained
and stay is granted, the matter must be decided on day-to-day basis F
so that stay does not operate for an unduly long period – Though
no mandatory time limit may be fixed, the decision may not exceed
two-three months normally – Mandate of speedy justice applies to
the PC Act cases as well – Per R. F. Nariman, J. (Concurring)
Inherent power of a Court set up by the Constitution is a power that
G
inheres in such Court because it is a superior court of record, and
not because it is conferred by the Code of Criminal Procedure –
Section 19(3)(c) cannot be read as a ban on the maintainability of
a petition filed before High Court u/s.482,CrPC – Constitution of
India – Arts. 21, 215, 226 and 227 – Code of Criminal Procedure,
1973 – ss.397(2), 482 – Prevention of Corruption Act, 1947 – H
1045
1046 SUPREME COURT REPORTS [2018] 2 S.C.R.

A Criminal Law (Amendment) Act, 1952 – Anti-Corruption Laws
(Amendment) Act, 1964 – Stay.
Constitution of India: Art. 21 – Mandate of speedy justice in
criminal cases – Delay in trials of corruption cases, due to grant of
stay – Directions issued – Prevention of Corruption Act, 1988 –
B Stay. [Per A.K. Goel, J. (for himself and Navin Sinha, J.)]
Stay: Duration of, in civil and criminal cases – Held: Where
stay against proceedings of a civil or criminal trial is operating, the
same will come to an end on expiry of six months – Administration
of justice. [Per A.K. Goel, J. (for himself and Navin Sinha, J.)]
C Prevention of Corruption Act, 1988: s.19(3)(c) r/w ss.4(4)
and 22 – Cases under the Act – Disposal of – Held: S.19(3)(c) read
with ss.4(4) and 22, make it clear that cases under the Act have to
be decided with utmost despatch and without any glitches on the
way in the form of interlocutory stay orders. (Per R.F. Nariman, J.)
D Code of Criminal Procedure, 1973: s. 482 – Inherent Powers
of Court – Nature of – Discussed. (Per R.F. Nariman, J.)
Interpretation of Statutes: In case of ambiguity – Held: If there
is an ambiguity, and two views are possible, the view which most
accords with the object of the Act, and which makes the Act
E workable, must necessarily be the controlling view. (Per R.F.
Nariman, J.)
Prevention of Corruption Act, 1988: s.19(3)(c) – “On any
other ground” – Plea of appellants that the expression “on any
other ground” is referable only to grounds which relate to sanction
F and not to all proceedings under the Act – Respondents contended
that these are grounds referable to the proceedings under the Act
and are not relatable to sanction only – Held: “On any other
ground”, refers to and relates to all grounds that are available in
proceedings under the Act other than grounds which relate to
G sanction granted by the authority. (Per R.F. Nariman, J.)
Answering the referred questions, the Court
HELD: Per A.K. Goel, J. (for himself and Navin Sinha, J.)
1.1 Order framing charge may not be held to be purely an
interlocutory order and can in a given situation be interfered with
H
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1047

under Section 397(2) Cr.P.C. or 482 Cr.P.C. or Article 227 of the A
Constitution which is a constitutional provision but the power of
the High Court to interfere with an order framing charge and to
grant stay is to be exercised only in an exceptional situation.
The High Court has jurisdiction in appropriate case to consider
the challenge against an order framing charge and also to grant
B
stay. [Paras 26, 27] [1072-E-F]
Madhu Limaye v. The State of Maharashtra (1977) 4
SCC 551 : [1978] 1 SCR 749 – affirmed.
1.2 In the PC Act cases, the intention of legislature is
expeditious conclusion of trial on day-to-day basis without any C
impediment through the stay of proceedings and this concern
must be respected. The proviso to Section 397(1) Cr.P.C. added
by Section 22(d) of the Prevention of Corruption Act, 1988 states
that a revisional court shall not ordinarily call for the record of
proceedings. If record is called, the Special Judge may not be
able to proceed with the trial which will stand indirectly stayed. D
The right of the accused has to be considered vis-à-vis the interest
of the society. Even constitutional power of the High Court under
Article 226 which was very wide ought to be used with
circumspection in accordance with judicial consideration and well
established principles. The power should be exercised sparingly E
in rare and extreme circumstances. It is well accepted that delay
in a criminal trial, particularly in the PC Act cases, has deleterious
effect on the administration of justice in which the society has a
vital interest. Delay in trials affects the faith in Rule of Law and
efficacy of the legal system. It affects social welfare and
development. Even in civil or tax cases it has been laid down F
that power to grant stay has to be exercised with restraint. Mere
prima facie case is not enough. Party seeking stay must be put to
terms and stay should not be incentive to delay. The order granting
stay must show application of mind. The power to grant stay is
coupled with accountability. [Paras 28, 29][1072-G-H; 1073-A-D] G
1.3 Wherever stay is granted, a speaking order must be
passed showing that the case was of exceptional nature and delay
on account of stay will not prejudice the interest of speedy trial in
a corruption case. Once stay is granted, proceedings should not
be adjourned and concluded within two-three months. The H
1048 SUPREME COURT REPORTS [2018] 2 S.C.R.

A wisdom of legislature and the object of final and expeditious
disposal of a criminal proceeding cannot be ignored. In exercise
of its power the High Court is to balance the freedom of an
individual on the one hand and security of the society on the other.
Only in case of patent illegality or want of jurisdiction the High
Court may exercise its jurisdiction. The acknowledged experience
B
is that where challenge to an order framing charge is entertained,
the matter remains pending for long time which defeats the
interest of justice. The judicial experience is that trial of corruption
cases is not permitted to proceed on account of challenge to the
order of charge before the High Courts. Once stay is granted,
C disposal of a petition before the High Court takes long time.
Consideration of the challenge against an order of framing charge
may not require meticulous examination of voluminous material
which may be in the nature of a mini trial. Still, the Court is at
times called upon to do so inspite of law being clear that at the
stage of charge the Court has only to see as to whether material
D
on record reasonably connects the accused with the crime. [Paras
30-32] [1073-E-G; 1074-A-B]
Hardeep Singh v. State of Punjab (2014) 3 SCC 92 :
[2014] 2 SCR 1 – followed.
E 1.4 If at the stage of charge, the High Court adopts the
approach of weighing probabilities and re-appreciate the material,
it may be certainly a time consuming exercise. The legislative
policy of expeditious final disposal of the trial is thus, hampered.
Thus, even while reiterating the view that there is no bar to
jurisdiction of the High Court to consider a challenge against an
F order of framing charge in an exceptional situation for correcting
a patent error of lack of jurisdiction, exercise of such jurisdiction
has to be limited to rarest of rare cases. Even if a challenge to
order framing charge is entertained, decision of such a petition
should not be delayed. Though no mandatory time limit can be
G fixed, normally it should not exceed two-three months. If stay is
granted, it should not normally be unconditional or of indefinite
duration. Appropriate conditions may be imposed so that the party
in whose favour stay is granted is accountable if court finally finds
no merit in the matter and the other side suffers loss and injustice.
To give effect to the legislative policy and the mandate of Article
H
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1049

21 for speedy justice in criminal cases, if stay is granted, matter A
should be taken on day-to-day basis and concluded within two-
three months. Where the matter remains pending for longer
period, the order of stay will stand vacated on expiry of six
months, unless extension is granted by a speaking order showing
extraordinary situation where continuing stay was to be preferred
B
to the final disposal of trial by the trial Court. This timeline is
being fixed in view of the fact that such trials are expected to be
concluded normally in one to two years. In view of above, situation
of proceedings remaining pending for long on account of stay
needs to be remedied. Remedy is required not only for corruption
cases but for all civil and criminal cases where on account of stay, C
civil and criminal proceedings are held up. At times, proceedings
are adjourned sine die on account of stay. Even after stay is vacated,
intimation is not received and proceedings are not taken up. In
an attempt to remedy this, situation, it is directed that in all
pending cases where stay against proceedings of a civil or criminal
D
trial is operating, the same will come to an end on expiry of six
months from today unless in an exceptional case by a speaking
order such stay is extended. In cases where stay is granted in
future, the same will end on expiry of six months from the date of
such order unless similar extension is granted by a speaking
order. The speaking order must show that the case was of such E
exceptional nature that continuing the stay was more important
than having the trial finalized. The trial Court where order of stay
of civil or criminal proceedings is produced, may fix a date not
beyond six months of the order of stay so that on expiry of period
of stay, proceedings can commence unless order of extension of
F
stay is produced. [Paras 33, 35] [1076-B-F; 1078-C-F]
1.5 Thus, the law is declared to be that order framing charge
is not purely an interlocutory order nor a final order. Jurisdiction
of the High Court is not barred irrespective of the label of a
petition, be it under Sections 397 or 482 Cr.P.C. or Article 227 of
the Constitution. However, the said jurisdiction is to be exercised G
consistent with the legislative policy to ensure expeditious
disposal of a trial without the same being in any manner hampered.
Thus considered, the challenge to an order of charge should be
entertained in a rarest of rare case only to correct a patent error
of jurisdiction and not to re-appreciate the matter. Even where H
1050 SUPREME COURT REPORTS [2018] 2 S.C.R.

A such challenge is entertained and stay is granted, the matter must
be decided on day-to-day basis so that stay does not operate for
an unduly long period. Though no mandatory time limit may be
fixed, the decision may not exceed two-three months normally.
If it remains pending longer, duration of stay should not exceed
six months, unless extension is granted by a specific speaking
B
order, as already indicated. Mandate of speedy justice applies to
the PC Act cases as well as other cases where at trial stage
proceedings are stayed by the higher court i.e. the High Court
or a court below the High Court, as the case may be. In all pending
matters before the High Courts or other courts relating to PC
C Act or all other civil or criminal cases, where stay of proceedings
in a pending trial is operating, stay will automatically lapse after
six months from today unless extended by a speaking order on
above parameters. Same course may also be adopted by civil and
criminal appellate/revisional courts under the jurisdiction of the
High Courts. The trial courts may, on expiry of above period,
D
resume the proceedings without waiting for any other intimation
unless express order extending stay is produced. The High
Courts may also issue instructions to this effect and monitor the
same so that civil or criminal proceedings do not remain pending
for unduly period at the trial stage. [Paras 36, 37] [1078-G-H;
E 1079-A-D]
L. Chandra Kumar v. Union of India and Ors. (1997) 3
SCC 261; Kartar Singh v. State of Punjab (1994) 3
SCC 569 : [1994] 2 SCR 375 – followed.
Imtiaz Ahmad v. State of U.P. (2012) 2 SCC 688 :
F [2012] 1 SCR 779 – relied on.
Dharambir Khattar v. Central Bureau of Investigation
159 (2009) DLT 636; R. C. Sabharwal v. Central
Bureau of Investigation 166 (2010) DLT 362; CBI v.
Ravi Shankar Srivastava (2006)7 SCC 188 : [2006] 4
G Suppl. SCR 450; Dharimal Tobacco Products Ltd. and
Ors. v. State of Maharashtra and Anr. AIR 2009 SC
1032 : [2008] 17 SCR 844; Krishnana v. Krishnaveni
(1997) 4 SCC 241 : [1997] 1 SCR 511; Nagendra Nath
Bora v. Commissioner of Hills Division and Appeals,
H Assam AIR 1958 SC 398 : [1958] SCR 1240; Nihandra
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1051

Bag v. Mahendra Nath Ghughu AIR 1963 SC 1895 : A
[1963] Suppl. SCR 570; Sarpanch, Lonand
Grampanchayat v. Ramgiri Gosavi and Anr. AIR 1968
SC 222 : [1967] SCR 774; Maruti Bala Raut v. Dashrath
Babu Wathare and Ors. (1974) 2 SCC 615: [1975]
1 SCR 899; Babhutmal Raichand Oswal v. Laxmibai R.
B
Tarte and Anr. AIR 1975 SC 1297; Jagir Singh v. Ranbir
Singh and Anr. AIR 1979 SC 381 : [1979] 2 SCR 282;
Vishesh Kumar v. Shanti Prasad AIR 1980 SC 892:
[1980] 3 SCR 32; Khalil Ahmed Bashir Ahmed v.
Tufelhussein Samasbhai Sarangpurwala AIR 1988 SC
184: [1988] 1 SCR 1057; M.C. Mehta v. Kamal Nath C
and Ors. AIR 2000 SC 1997; Ranjeet Singh v. Ravi
Prakash AIR 2004 SC 3892; Amarnath v. State of
Haryana (1977) 4 SCC 137 : [1978] 1 SCR 222;
Mohanlal Maganlal Thacker v. State of Gujarat [1968]
2 SCR 685; Manohar Lal Sharma v. Principal Secretary
D
and ors. (2014) 9 SCC 516 : [2014] 8 SCR 836; Shalini
Shyam Shetty v. Rajendra Shankar Patil (2010) 8 SCC
329 : [2010] 8 SCR 836; State v. Navjot Sandhu (2003)
6 SCC 641 : [2003] 1 Suppl. SCR 130; V.C. Shukla v.
State through CBI (1980) Suppl. SCC 92 :
[1980] SCR 380; Girish Kumar Suneja v. Central E
Bureau of Investigation (2017) 14 SCC 809; S.
Kuppuswami Rao v. The King (1947) 9 FCR 180; Satya
Narayan Sharma v. State of Rajasthan (2001) 8 SCC
607 : [2001] 3 Suppl. SCR 268; Chander Shekhar
Singh v. Siya Ram Singh (1979) 3 SCC 118 : [1979]
F
1 SCR 947; Ratilal Bhanji Mithani v. Asstt. Collector
of Customs, Bombay and Anr. [1967] 3 SCR 926;
Siliguri Municipality vs. Amalendu Das (1984) 2 SCC
436 : [1984] 2 SCR 344; Assistant Collector of Central
Excise, Chandan Nagar, West Bengal vs. Dunlop India
Ltd. and Ors. (1985) 1 SCC 260 : [1985] 2 SCR 190; G
Union Territory of Pondicherry and Ors. vs. P.V. Suresh
and Ors. (1994) 2 SCC 70 : [1993] 2 Suppl. SCR 487;
State of West Bengal and Ors. vs. Calcutta Hardware
Stores and Ors. (1986) 2 SCC 203 : [1986] 1 SCR
364 – referred to.
H
1052 SUPREME COURT REPORTS [2018] 2 S.C.R.

A HELD: Per R.F. Nariman, J. (Concurring):
1.1 A perusal of Section 19(3) of the Prevention of
Corruption Act, 1988 would show that the interdict against stay
of proceedings under this Act on the ground of any error, omission
or irregularity in the sanction granted by the authority is lifted if
B the Court is satisfied that the error, omission or irregularity has
resulted in a failure of justice. Having said this in clause (b) of
Section 19(3), clause (c) says that no Court shall stay proceedings
under this Act on any other ground. [Para 7] [1085-G-H]
1.2 The Respondents are correct in their submission that
C “on any other ground” are grounds referable to the proceedings
under this Act and not relatable to sanction only, for the following
reasons:
(i) Section 19(3)(b) subsumes all grounds which are relatable to
sanction granted. This is clear from the word “any” making it
D clear that whatever be the error, omission or irregularity in
sanction granted, all grounds relatable thereto are covered.
(ii) This is further made clear by Explanation (a), which defines
an “error” as including competency of the authority to grant
sanction.
E (iii) The words “in the sanction granted by the authority” contained
in sub-clause (b) are conspicuous by their absence in sub-
clause(c), showing thereby that it is the proceedings under the
Act that are referred to.
(iv) The expression “on any other ground”, therefore, refers to
F and relates to all grounds that are available in proceedings under
the Act other than grounds which relate to sanction granted by
the authority.
(v) On the assumption that there is an ambiguity, and that there
are two views possible, the view which most accords with the
G object of the Act, and which makes the Act workable, must
necessarily be the controlling view. It is settled law that even
penal statutes are governed not only by their literal language,
but also by the object sought to be achieved by Parliament.
(vi) The Statement of Objects and Reasons of the Prevention of
H Corruption Act, 1988 makes it clear, Section 19(3)(c) is to be
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1053

read with Section 4(4) and Section 22, all of which make it clear A
that cases under the Act have to be decided with utmost despatch
and without any glitches on the way in the form of interlocutory
stay orders.
(vii) The subject matter of sub-section (4) of Section 19,
Prevention of Corruption Act, 1988 is only in the nature of a B
proviso to Section 19(3)(a) and (b), making it clear that the ground
for stay qua sanction having occasioned or resulted in a failure of
justice should be taken at the earliest, and if not so taken, would
be rejected on this ground alone.
(viii) Section 19(3)(c) became necessary to make it clear that C
proceedings under the Act can be stayed only in the eventuality
of an error, omission or irregularity in sanction granted, resulting
in failure of justice, and for no other reason. It was for this reason
that it was also necessary to reiterate in the language of Section
397(2) of the Code of Criminal Procedure, that in all cases, other
than those covered by Section 19(3)(b), no court shall exercise D
the power of revision in relation to interlocutory orders that may
be passed. It is also significant to note that the reach of this part
of Section 19(3)(c) is at every stage of the proceeding, that is
inquiry, trial, appeal or otherwise, making it clear that, in
consonance with the object sought to be achieved, prevention of E
corruption trials are not only to be heard by courts other than
ordinary courts, but disposed of as expeditiously as possible, as
otherwise corrupt public servants would continue to remain in
office and be cancerous to society at large, eating away at the
fabric of the nation. [Para 8] [1086-B-H; 1087-A-D; 1088-A-E]
F
Madhu Limaye v. The State of Maharashtra (1977) 4
SCC 551 : [1978] 1 SCR 749 – affirmed.
Ms. Eera through Dr. Manjula Krippendorf v. State
(Govt. of NCT of Delhi) and Anr. 2017 SCC Online SC
787 – referred to.
G
1.3 The High Courts are established by the Constitution
and are courts of record which will have all powers of such courts,
including the power to punish contempt of themselves (Article
215). The High Court, being a superior court of record, is entitled
to consider questions regarding its own jurisdiction when raised
before it. [Para 9] [1088-F-G] H
1054 SUPREME COURT REPORTS [2018] 2 S.C.R.

A 1.4 It is thus clear that the inherent power of a Court set
up by the Constitution is a power that inheres in such Court
because it is a superior court of record, and not because it is
conferred by the Code of Criminal Procedure. This is a power
vested by the Constitution itself, inter alia, under Article 215 as
aforestated. Also, as such High Courts have the power, nay, the
B
duty to protect the fundamental rights of citizens under Article
226 of the Constitution, the inherent power to do justice in cases
involving the liberty of the citizen would also sound in Article 21
of the Constitution. This being the constitutional position, it is
clear that Section 19(3)(c) cannot be read as a ban on the
C maintainability of a petition filed before the High Court under
Section 482 of the Code of Criminal Procedure, the non-obstante
clause in Section 19(3) applying only to the Code of Criminal
Procedure. Insofar as petitions under Articles 226 and 227 are
concerned, they form part of the basic structure of the
Constitution. [Paras 11, 18] [1089-H; 1090-A-C; 1097-E-F]
D
Satya Narayan Sharma v. State of Rajasthan (2001) 8
SCC 607 : [2001] 3 Suppl. SCR 268 – overruled.
In re Special Reference 1 of 1964 [1965] 1 SCR 413;
Ratilal Bhanji Mithani v. Assistant Collector of Customs
E [1967] SCR 3 926; L. Chandra Kumar v. Union of India
and Ors. (1997) 3 SCC 261 : [1997] 2 SCR 1186;
Kartar Singh v. State of Punjab (1994) 3 SCC
569 : [1994] 2 SCR 375 – followed.
Girish Kumar Suneja v. C.B.I. (2017) 14 SCC 809 –
F relied on.
V. C. Shukla v. State through C.B.I. (1980) Supp. SCC
92 : [1980] SCR 380; Poonam Chand Jain and
another v. Fazru (2004) 13 SCC 269 : [2004] 5 Suppl.
SCR 525; Amar Nath v. State of Haryana (1977) 4 SCC
G 137 : [1978] 1 SCR 222 – referred to.
Case Law Reference
In the Judgment of Adarsh Kumar Goel, J.:
159 (2009) DLT 636 referred to Para 6
H 166 (2010) DLT 362 referred to Para 6
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1055

[2006] 4 Suppl. SCR 450 referred to Para 8 A
[2008] 17 SCR 844 referred to Para 8
[1978] 1 SCR 749 affirmed Para 8
[1997] 1 SCR 511 referred to Para 8
[2003] 1 Suppl. SCR 130 referred to Para 8 B
[1958] SCR 1240 referred to Para 9
[1963] Suppl. SCR 570 referred to Para 9
[1967] SCR 774 referred to Para 9
C
[1975] 1 SCR 899 referred to Para 9
AIR 1975 SC 1297 referred to Para 9
[1979] 2 SCR 282 referred to Para 9
[1980] 3 SCR 32 referred to Para 9
D
[1988] 1 SCR 1057 referred to Para 9
AIR 2000 SC 1997 referred to Para 9
AIR 2004 SC 3892 referred to Para 9
[1980] SCR 380 referred to Para 12
E
[2001] 3 Suppl. SCR 268 referred to Para 12
(1997) 3 SCC 261 followed Para 14
[1979] 1 SCR 947 referred to Para 14
[1978] 1 SCR 222 referred to Para 18 F
[1968] 2 SCR 685 referred to Para 19
(2017) 14 SCC 809 referred to Para 20
[2014] 8 SCR 446 referred to Para 20
[2010] 8 SCR 836 referred to Para 20 G
[1994] 2 SCR 375 followed Para 22
[1967] 3 SCR 926 referred to Para 24
[1984] 2 SCR 344 referred to Para 29
[1985] 2 SCR 190 referred to Para 29 H
1056 SUPREME COURT REPORTS [2018] 2 S.C.R.

A [1993] 2 Suppl. SCR 487 referred to Para 29
[1986] 1 SCR 364 referred to Para 29
[2014] 2 SCR 1 followed Para 32
[2012] 1 SCR 779 relied on Para 34
B In the Judgment of R. F. Nariman, J.:
[1978] 1 SCR 749 affirmed Para 8
[1965] 1 SCR 413 followed Para 9
[1967] SCR 3 926 followed Para 10
C
[2001] 3 Suppl. SCR 268 overruled Para 11
[1978] 1 SCR 222 referred to Para 12
[1980] SCR 380 referred to Para 14
[2004] 5 Suppl. SCR 525 referred to Para 14
D
(2017) 14 SCC 809 relied on Para 16
[1997] 2 SCR 1186 followed Para 18
[1994] 2 SCR 375 followed Para 18
CRIMINAL APPELLATE JURISDICTION : Criminal Appeal
E
Nos. 1375-1376 of 2013.
From the Judgment and Order dated 29.03.2011 by the Division
Bench of the High Court of Delhi at New Delhi in W.P. (Crl.) No. 352/2010.
WITH
F Crl. A. Nos. 1383, 1377, 1394, 1384, 1393, 1386-1387, 1385, 1406,
1396, 1395, 1391, 1389, 1388, 1398, 1397, 1390, 1399, 1402, 1400, 1401,
1404, 1403 and 1405 of 2013.
SLP (Crl.) Nos. 2610, 6835, 6834, 6837, 10050-10051 and 9652-
9653 of 2013.
G
Crl. A. Nos. 388 and 234 of 2014.
SLP (Crl.) Nos. 5678, 1451, 1399, 2508, 2970, 2507, 2939, 2977,
4709, 6372, 6391 and 6691-6692 of 2014.
Crl. A. No. 9363 of 2017.
H
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1057

Ms. Pinky Anand, ASG, Kapil Sibal, Mukul Rohatgi, Ms. Madhavi A
Divan, Sr. Advs., Arunabh Chowdhury, Anupam Lal Das, Sidharth Dave,
Sarvesh Singh Baghel, Aditya Pujari, Raghav Tankha, Bhanoo Sood,
Ms. Kalyani Lal, Tatni Basu, Siddhartha Dave, Ms. Jentiben Ao, Aditya
Ranjan, Anuj Chauhan, Zulfiqar Ali Khan, Aamir Naseem, Anuj Chauhan,
Mohd. Farhan Khan, Farhan Hashmi, Md. Shahid Anwar, Amar Dave,
B
Mrs. Nandini Gore, Mohit Mudgal, Akarsha Sahay, Sushil Jethmalani,
Mrs. Manik Karanjawala (For M/s. Karanjawala), Anupam Lal Das,
Anirudh Singh, Krishanu Barua, Rishi Malhotra, Bhavtosh Sharma, Gopal
Jha, Sibo Sankar Mishra, S. P. Mehta, Mohit D. Ram, Ms. Monisha
Handa, Amjid Maqbool, Kush Chatuvedi, Rohit Bhatt, Somay Kapoor,
Priyashree Ph., Sushil Gupta, Manan Verma, Mridula Ray Bharadwaj, C
Yoginder Handoo, Nishant Kumar, Harish Pandey, Harsh Khanna, Amit
T., Abhishek Tyagi, Nikhil Jain, R. P. Shukla, Vijay K. Jain, H. S. Bhullar,
Ashwani Kumar, Ms. Iti Sharma, Ms. Shivali Chaudhary, Abhinav
Sharma, Ms. Sneha B., Kamal Mohan Gupta, Santosh Kumar – I,
Ms. Binu Tamta, Ms. Kiran Bhardwaj, S. S. Shamshery, V. V. Pattabhi
D
Ram, Ms. Rukmani Bobde, Hemant Arya, Sumit T., Mukesh Kumar
Maroria, P. Vinay Kumar, Ms. Prerna Mehta, V. N. Raghupathy, Ashok
K. Mahajan, Siddharth Aggarwal, Senthil Jagadeesan, Ms. Ruoali Samuel,
Amarjit Singh Bedi, B. V. Balaram Das, Arunabh Chowdhury, Anupam
Lal Das, Sidharth Dave, Advs. for the appearing parties.
The Judgments of the Court were delivered by E

ADARSH KUMAR GOEL, J.
Criminal Appeal Nos.1375-1376 OF 2013
1. These appeals have been put up before this Bench of three
Judges in pursuance of order of Bench of two Judges dated 9th F
September, 2013 as follows:
“Leave granted.
Learned counsel for the parties are agreed that there is
considerable difference of opinion amongst different
G
Benches of this Court as well as all the High Courts. Mr.
Ram Jethmalani, learned Senior Counsel appearing for
petitioner in Criminal Appeal arising out of Special Leave
Petition (Criminal)No.6470 of 2012 submits that the
subsequent decisions rendered by the two-judge Benches are
H
1058 SUPREME COURT REPORTS [2018] 2 S.C.R.

A per incuriam, and in conflict with the ratio of law laid down
in the Constitution Bench decision in Mohanlal Maganlal
Thacker v. State of Gujarat [(1968) 2 SCR 685].
In this view of the matter, we are of the opinion that it would
be appropriate if the matters are referred to and heard by a
B larger Bench. Office is directed to place the matters before
the Hon’ble the Chief Justice of India for appropriate orders.
In the meantime, further proceedings before the trial Court
shall remain stayed.”
2. Since the question of law to be determined is identical in all
C cases, we have taken up for consideration this matter. In the light of
answer to the referred question this as well as all other matters may be
considered for disposal on merits by the appropriate Bench.
3. Brief facts first. F.I.R. dated 7th March, 2001 has been recorded
with the Delhi Special Police Establishment: CBI/SIU-VIII/New Delhi
D Branch under Section 120B read with Sections 420, 467, 468, 471 and
477A of IPC and Section 13(2) read with 13(1)(d) of the Prevention of
Corruption Act, 1988 (the PC Act) at the instance of Municipal
Corporation of Delhi (MCD) against the appellant and certain officers
of MCD alleging causing of wrongful loss to the MCD by using fake
E invoices of Oil Companies relating to transportation of Bitumen for use in
“Dense Carpeting Works” of roads in Delhi during the year 1997 and 1998.
4. After investigation, charge sheet was filed against the appellant
and certain employees of MCD by the respondent-CBI before the Special
Judge, CBI, New Delhi on 28th November, 2002. The appellants filed an
F application for discharge with the Special Judge, CBI. On 1st February,
2007, the Special Judge, CBI directed framing of the charges after
considering the material before the Court. It was held that there was a
prima facie case against the appellant and the other accused. The
appellants filed Criminal Revision No. 321 of 2007 before the Delhi High
Court against the order framing charge. The Revision Petition was
G converted into Writ Petition (Criminal)No.352 of 2010.
5. Learned Single Judge referred the following question of law
for consideration by the Division Bench:
“Whether an order on charge framed by a Special Judge
under the provisions of Prevention of Corruption Act, being
H
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1059
[ADARSH KUMAR GOEL, J.]

an interlocutory order, and when no revision against the A
order or a petition under Section 482 of Cr.P.C. lies, can be
assailed under Article 226/227 of the Constitution of India,
whether or not the offences committed include the offences
under Indian Penal Code apart from offences under
Prevention of Corruption Act?”
B
6. The learned Single Judge referred to the conflicting views taken
in earlier two single Bench decisions of the High Court in Dharambir
Khattar versus Central Bureau of Investigation1and R.C. Sabharwal
versus Central Bureau of Investigation2. It was observed :
“However, since there are two views, one expressed by the C
Bench of Justice Jain in R.C. Sabharwal’s (supra) case and
one held by the Bench of Justice Muralidhar in Dharamvir
Khattar’s case (supra) and by this Bench, I consider that it
was a fit case where a Larger Bench should set the
controversy at rest.”
D
7. In Dharambir Khattar (supra), the view of learned Single
Judge is as follows :
“32. To conclude this part of the discussion it is held that in
the context of Section 19(3)(c) the words “no Court shall
exercise the powers of revision in relation to any interlocutory E
order passed in any inquiry, trial...” includes an interlocutory
order in the form of an order on charge or an order framing
charge. On a collective reading of the decisions in V.C.
Shukla and Satya Narayan Sharma, it is held that in terms
of Section 19(3)(c) PCA, no revision petition would be
maintainable in the High Court against order on charge or F
an order framing charge passed by the Special Court.
33. Therefore, in the considered view of this Court, the
preliminary objection of the CBI to the maintainability of
the present petitions is required to be upheld....”
G
8. In R.C. Sabharwal (supra), another learned Single Judge held
that even though no revision may lie against an interlocutory order, there
was no bar to the constitutional remedy under Articles 226 and 227 of
the Constitution. At the same time, power under Section 482 could not
1
159 (2009) DLT 636
2
166(2010) DLT 362 H
1060 SUPREME COURT REPORTS [2018] 2 S.C.R.

A be exercised in derogation of express bar in the statute in view of
decisions of this Court in CBI versus Ravi Shankar Srivastava3,
Dharimal Tobacco Products Ltd. and Ors. versus State of
Maharashtra and Anr. 4, Madhu Limaye versus The State of
Maharashtra5, Krishnan versus Krishnaveni6 and State versus
Navjot Sandhu7.
B
9. It was observed :
“37. In view of the authoritative pronouncement of the
Hon’ble Supreme Court in the case of Navjot Sandhu (supra),
coupled with its earlier decisions in the case of Madhu
C Limaye (supra), it cannot be disputed that inherent powers
of the High Court, recognized in Section 482 of the Code of
Criminal Procedure, cannot be used when exercise of such
powers would be in derogation of an express bar contained
in a statutory enactment, other than the Code of Criminal
Procedure. The inherent powers of the High Court have not
D been limited by any other provisions contained in the Code
of Criminal Procedure, as is evident from the use of the words
?Nothing in this Code? in Section 482 of the Code of
Criminal Procedure, but, the powers under Section 482 of
the Code of Criminal Procedure cannot be exercised when
E exercise of such powers would be against the legislative
mandate contained in some other statutory enactment such
as Section 19(3)(c) of Prevention of Corruption Act.”
“29. The fact that the procedural aspect as regards the
hearing of the parties has been incorporated in Section 22
F does not really throw light on whether an order on charge
would be an interlocutory order for the purposes of Section
19(3)(c) PCA. A collective reading of the two provisions
indicates that in the context of order on charge an order
discharging the accused may be an order that would be
subject-matter of a revision petition at the instance perhaps
G of the prosecution. Since all provisions of the statute have
to be given meaning, a harmonious construction of the three
3
(2006)7 SCC 188
4
AIR 2009 SC 1032
5
(1977) 4 SCC 551
6
(1997) 4 SCC 241
H 7
(2003) 6 SCC 641
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1061
[ADARSH KUMAR GOEL, J.]

provisions indicates that the kinds of orders which can be A
challenged by way of a revision petition in the High Court is
narrowed down to a considerable extent as explained in the
case of Satya Narayan Sharma.”
Further, after referring to Nagendra Nath Bora v. Commissioner
of Hills Division and Appeals, Assam, AIR 1958 SC 398; Nibaran B
Chandra Bag v. Mahendra Nath Ghughu, AIR 1963 SC 1895;
Sarpanch, Lonand Grampanchayat v. Ramgiri Gosavi and Anr.,
AIR 1968 SC 222; Maruti Bala Raut v. Dashrath Babu Wathare
and Ors., (1974) 2 SCC 615; Babhutmal Raichand Oswal v.
Laxmibai R. Tarte and Anr., AIR 1975 SC 1297; Jagir Singh v.
Ranbir Singh and Anr., AIR 1979 SC 381; Vishesh Kumar v. Shanti C
Prasad, AIR 1980 SC 892; Khalil Ahmed Bashir Ahmed v.
Tufelhussein Samasbhai Sarangpurwala, AIR 1988 SC 184; M.C.
Mehta v. Kamal Nath and Ors., AIR 2000 SC 1997 and Ranjeet
Singh v. Ravi Prakash, AIR 2004 SC 3892, it was observed :
“25. It is well known fact that trials of corruption cases are D
not permitted to proceed further easily and a trial of
corruption case takes anything upto 20 years in completion.
One major reason for this state of affairs is that the moment
charge is framed, every trial lands into High Court and order
on charge is invariably assailed by the litigants and the High E
Court having flooded itself with such revision petitions, would
take any number of years in deciding the revision petitions
on charge and the trials would remain stayed. Legislature
looking at this state of affairs, enacted provision that
interlocutory orders cannot be the subject matter of revision
petitions. This Court for reasons as stated above, in para F
No. 3 & 4 had considered the state of affairs prevalent and
came to conclusion that no revision against the order of
framing of charge or order directing framing of charge
would lie. Similarly, a petition under Section 482 of Cr. P.C.
would also not lie. I am of the opinion that once this Court G
holds that a petition under Article 227 would lie, the result
would be as is evident from the above petitions that every
order on charge which earlier used to be assailed by way of
revision would be assailed in a camouflaged manner under
Article 227 of the Constitution and the result would be same
that proceedings before the trial court shall not proceed. H
1062 SUPREME COURT REPORTS [2018] 2 S.C.R.

A 26. The decisions on a petition assailing charge requires
going through the voluminous evidence collected by the CBI,
analyzing the evidence against each accused and then
coming to conclusion whether the accused was liable to be
charged or not. This exercise is done by Special Judge
invariably vide a detailed speaking order. Each order on
B
charge of the Special Judge, under Prevention of Corruption
cases, normally runs into 40 to 50 pages where evidence is
discussed in detail and thereafter the order for framing of
charge is made. If this Court entertains petitions under Article
227 of the Constitution to re-appreciate the evidence collected
C by CBI to see if charge was liable to be framed or, in fact,
the Court would be doing so contrary to the legislative intent.
No court can appreciate arguments advanced in a case on
charge without going through the entire record. The issues
of jurisdiction and perversity are raised in such petitions
only to get the petition admitted. The issue of jurisdiction is
D
rarely involved. The perversity of an order can be argued in
respect of any well written judgment because perversity is
such a term which has a vast meaning and an order which is
not considered by a litigant in its favour is always considered
perverse by him and his counsel. Therefore, entertaining a
E petition under Article 227 of the Constitution against an order
on charge would amount to doing indirectly the same thing
which cannot be done directly, I consider that no petition
under Article 227 can be entertained.”
(Emphasis added)
F 10. The Division Bench in the impugned judgment8 reframed the
questions as follows:
“(a) Whether an order framing charge under the 1988 Act
would be treated as an interlocutory order thereby
barring the exercise of revisional power of this Court?
G
(b) Whether the language employed in Section 19 of the
1988 Act which bars the revision would also bar the
exercise of power under Section 482 of the Cr.P.C. for
all purposes?
8
Anur Kumar Jain versus CBI 178(2011) DLT 501
H
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1063
[ADARSH KUMAR GOEL, J.]

(c) Whether the order framing charge can be assailed under A
Article 227 of the Constitution of India?”
11. After discussing the law on the point, the Bench concluded:
“(a) An order framing charge under the Prevention of
Corruption Act, 1988 is an interlocutory order.
B
(b) As Section 19(3)(c) clearly bars revision against an
interlocutory order and framing of charge being an
interlocutory order a revision will not be maintainable.
(c) A petition under Section 482 of the Code of Criminal
Procedure and a writ petition preferred under Article 227 of C
the Constitution of India are maintainable.
(d) Even if a petition under Section 482 of the Code of
Criminal Procedure or a writ petition under Article 227 of
the Constitution of India is entertained by the High Court
under no circumstances an order of stay should be passed D
regard being had to the prohibition contained in Section
19(3)(c) of the 1988 Act.
(e) The exercise of power either under Section 482 of the
Code of Criminal Procedure or under Article 227 of the
Constitution of India should be sparingly and in exceptional
E
circumstances be exercised keeping in view the law laid down
in Siya Ram Singh [(1979) 3 SCC 118], Vishesh Kumar [AIR
1980 SC 892], Khalil Ahmed Bashir Ahmed [AIR 1988 SC
184, Kamal Nath and Ors. [AIR 2000 SC 1997 Ranjeet Singh
[AIR 2004 SC 3892] and similar line of decisions in the
field. F
(f) It is settled law that jurisdiction under Section 482 of the
Code of Criminal Procedure or under Article 227 of the
Constitution of India cannot be exercised as a “cloak of an
appeal in disguise” or to re-appreciate evidence. The
aforesaid proceedings should be used sparingly with great G
care, caution, circumspection and only to prevent grave
miscarriage of justice.”
12. It was held that order framing charge was an interlocutory
order and no Revision Petition under Section 401 read with Section 397(2)
H
1064 SUPREME COURT REPORTS [2018] 2 S.C.R.

A Cr.P.C. would lie to the High Court against such order. Reliance was
mainly placed on V.C. Shukla versus State through CBI9. Therein,
Section 11A of the Special Courts Act, 1979 was interpreted by a Bench
of four Judges of this Court. The Bench applied the test in S.
Kuppuswami Rao versus the King 10. Reliance was also placed on
Satya Narayan Sharma versus State of Rajasthan11, wherein Section
B
19 (3)(c) of the Prevention of Corruption Act, 1988 was the subject
matter of consideration.
13. It was, however, held that a petition under Section 482 Cr.P.C.
will lie to the High Court even when there is a bar under Section 397 or
some other provisions of the Cr.P.C. However, inherent power could be
C exercised only when there is abuse of the process of Court or where
interference is absolutely necessary for securing the ends of justice. It
must be exercised very sparingly where proceedings have been initiated
illegally, vexatiously or without jurisdiction. The power should not be
exercised against express provision of law. Even where inherent power
D is exercised in a rare case, there could be no stay of trial in a corruption
case. Reliance in this regard was mainly placed on judgments of this
Court in Satya Narayan Sharma (supra) and Navjot Sandhu (supra).
14. As regards a petition under Article 227 of the Constitution, it
was held that the said power was part of basic structure of the Constitution
E as held in L. Chandra Kumar versus Union of India and Ors.12 and
could not be barred. But the Court would refrain from passing an order
which would run counter to and conflict with an express intendment
contained in Section 19(3)(c) of the PC Act. Reliance was also placed
on Chandrashekhar Singh and Others versus Siya Ram Singh 13
and Ors.
F
15. Learned counsel for the appellants submitted that the High
Court was in error in holding that the order framing charge was an
interlocutory order. In any case, since petition under Section 482 Cr.P.C.
and under Article 227 of the Constitution has been held to be maintainable,
there could be no prohibition against interference by the High Court or
G the power of the High Court to grant stay in spite of prohibition under
Section 19(3)(c) of the PC Act.
9
(1980) Suppl. SCC 92
10
(1947) FCR 180
11
(2001) 8 SCC 607
12
(1997) 3 SCC 261
H 13
(1979) 3 SCC 118
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1065
[ADARSH KUMAR GOEL, J.]

16. Learned counsel for the CBI, however, supported the view of A
the High Court.
17. We have given due considerations to the rival submissions and
perused the decisions of this Court. Though the question referred relates
to the issue whether order framing charges is an interlocutory order, we
have considered further question as to the approach to be adopted by B
the High Court in dealing with the challenge to the order framing charge.
As already noted in para 10, the impugned order also considered the
said question. Learned counsel for the parties have also addressed the
Court on this question.
18. It is not necessary to refer to all the decisions cited at the Bar. C
Suffice it to say that a Bench of three Judges in Madhu Limaye (supra)
held that legislature has sought to check delay in final disposal of
proceedings in criminal cases by way of a bar to revisional jurisdiction
against an interlocutory order under sub-Section 2 of Section 397 Cr.P.C.
At the same time, inherent power of the High Court is not limited or
affected by any other provision. It could not mean that limitation on D
exercise of revisional power is to be set at naught. Inherent power could
be used for securing ends of justice or to check abuse of the process of
the Court. This power has to be exercised very sparingly against a
proceeding initiated illegally or vexatiously or without jurisdiction. The
label of the petition is immaterial. This Court modified the view taken in E
Amarnath versus State of Haryana14 and also deviated from the test
for interlocutory order laid down in S. Kuppuswami Rao (supra). We
may quote the following observations in this regard:
“6. The point which falls for determination in this appeal is
squarely covered by a decision of this Court, to which one F
of us (Untwalia, J.) was a party in Amar Nath v. State of
Haryana. But on a careful consideration of the matter and
on hearing learned Counsel for the parties in this appeal
we thought it advisable to enunciate and reiterate the view
taken by two learned Judges of this Court in Amar Nath
case but in a somewhat modified and modulated form. ….. G
xxxx xxxx xxxx xxxx
10. As pointed out in Amar Nath case the purpose of putting
a bar on the power of revision in relation to any interlocutory
14
(1977) 4 SCC 137 H
1066 SUPREME COURT REPORTS [2018] 2 S.C.R.

A order passed in an appeal, inquiry, trial or other proceeding,
is to bring about expeditious disposal of the cases finally.
More often than not, the revisional power of the High Court
was resorted to in relation to interlocutory orders delaying
the final disposal of the proceedings. The Legislature in its
wisdom decided to check this delay by introducing sub-
B
section (2) in Section 397. On the one hand, a bar has been
put in the way of the High Court (as also of the Sessions
Judge) for exercise of the revisional power in relation to
any interlocutory order, on the other, the power has been
conferred in almost the same terms as it was in the 1898
C Code. On a plain reading of Section 482, however, it would
follow that nothing in the Code, which would include sub-
section (2) of Section 397 also, “shall be deemed to limit or
affect the inherent powers of the High Court”, But, if we
were to say that the said bar is not to operate in the exercise
of the inherent power at all, it will be setting at naught one
D
of the limitations imposed upon the exercise of the revisional
powers. In such a situation, what is the harmonious way
out? In our opinion, a happy solution of this problem would
be to say that the bar provided in sub-section (2) of Section
397 operates only in exercise of the revisional power of the
E High Court, meaning thereby that the High Court will have
no power of revision in relation to any interlocutory order.
Then in accordance with one of the other principles
enunciated above, the inherent power will come into play,
there being no other provision in the Code for the redress of
the grievance of the aggrieved party. But then, if the order
F
assailed is purely of an interlocutory character which could
be corrected in exercise of the revisional power of the High
Court under the 1898 Code, the High Court will refuse to
exercise its inherent power. But in case the impugned order
clearly brings about a situation which is an abuse of the
G process of the Court or for the purpose of securing the ends
of justice interference by the High Court is absolutely
necessary, then nothing contained in section 397(2) can limit
or affect the exercise of the inherent power by the High Court.
But such cases would be few and far between. The High
Court must exercise the inherent power very sparingly. One
H
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1067
[ADARSH KUMAR GOEL, J.]

such case would be the desirability of the quashing of, a A
criminal proceeding initiated illegally, vexatiously or as being
without jurisdiction. Take for example a case where a
prosecution is launched under the Prevention of Corruption
Act without a sanction. then the trial of the accused will be
without jurisdiction and even after his acquittal a second
B
trial after proper sanction will not be barred on the doctrine
of Autrefois Acquit. Even assuming, although we shall
presently show that it is not so, that in such a case an order
of the Court taking cognizance or issuing processes is an
interlocutory order. does it stand to reason to say that inherent
power of the High Court cannot be exercised for stopping C
the criminal proceeding as early as possible, instead of
harassing the accused upto the end ? The answer is obvious
that the bar will not operate to prevent the abuse of the
process of the Court and/or to secure, the ends of justice.
The label of the petition filed by an aggrieved party is
D
immaterial. The High Court can examine the matter in an
appropriate case under its inherent powers. The present case
undoubtedly falls for exercise of the power of the High Court
in accordance with section 482 of the 1973 Code, even
assuming, although not accepting, that invoking the
revisional power of the High Court is impermissible. E
xxxx xxxx xxxx xxxx
13. …..But in our judgment such an interpretation and the
universal application of the principle that what is not a final
order must be an interlocutory order is neither warranted
nor justified. If it were so it will render almost nugatory the F
revisional power of the Sessions Court or the High Court
conferred on it by Section 397(1). On such a strict
interpretation, only those orders would be revisable which
are orders passed on the final determination of the action
but are not appealable under Chapter XXIX of the Code. G
This does not seem to be the intention of the Legislature when
it retained the revisional power of the High Court in terms
identical to the one in the 1898 Code. In what cases then the
High Court will examine the legality or the propriety of an
order or the legality of any proceeding of an inferior criminal
H
1068 SUPREME COURT REPORTS [2018] 2 S.C.R.

A court? Is it circumscribed to examine only such proceeding
which is brought for its examination after the final
determination and wherein no appeal lies? Such cases will
be very few and far between. …………….
…There may be an order passed during the course of a
B proceeding which may not be final in the sense noticed in
Kuppuswami case, but, yet it may not be an interlocutory
order — pure or simple. Some kinds of order may fall in
between the two. By a rule of harmonious construction, we
think that the bar in sub-section (2) of Section 397 is not
meant to be attracted to such kinds of intermediate
C orders……”
19. Referring to the judgment in Mohanlal Maganlal Thacker
v. State of Gujarat15, it was held that the test adopted therein that if
reversal of impugned order results in conclusion of proceedings, such
order may not be interlocutory but final order. It was observed :
D
“15. …….In the majority decision four tests were culled out
from some English decisions. They are found enumerated at
p. 688. One of the tests is “if the order in question is reversed
would the action have to go on?” Applying that test to the
facts of the instant case it would be noticed that if the plea
E of the appellant succeeds and the order of the Sessions Judge
is reversed, the criminal proceeding as initiated and instituted
against him cannot go on. If, however, he loses on the merits
of the preliminary point the proceeding will go on. Applying
the test of Kuppuswami case such an order will not be a
F final order. But applying the fourth test noted at p. 688 in
Mohan Lal case it would be a final order. The real point of
distinction, however, is to be found at p. 693 in the judgment
of Shelat, J. The passage runs thus:
“As observed in Ramesh v. Gendalal Motilal Patni[(1966) 3
G SCR 198 : AIR 1966 SC 1445] the finality of that order was
not to be judged by co-relating that order with the
controversy in the complaint viz. whether the appellant had
committed the offence charged against him therein. The fact
that that controversy still remained alive is irrelevant.”
15
H (1968) 2 SCR 685 = AIR 1968 SC 733
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1069
[ADARSH KUMAR GOEL, J.]

20. The principles laid down in Madhu Limaye (supra) still hold A
the field and have not been in any manner diluted by decision of four
Judges in V.C. Shukla versus State through CBI16 or by recent three
Judge Bench decision in Girish Kumar Suneja versus Central Bureau
of Investigation17. Though in V.C. Shukla (supra), order framing charge
was held to be interlocutory order, judgment in Madhu Limaye (supra)
B
taking a contrary view was distinguished in the context of the statute
considered therein. The view in S. Kuppuswami Rao (supra), was
held to have been endorsed in Mohanlal Maganlal Thacker (supra)
though factually in Madhu Limaye (supra), the said view was explained
differently, as already noted. Thus, in spite of the fact that V.C. Shukla
(supra) is a judgment by Bench of four Judges, it cannot be held that the C
principle of Madhu Limaye (supra) does not hold the field. As regards
Girish Kumar Suneja (supra), which is by a Bench of three Judges,
the issue considered was whether order of this Court directing that no
Court other than this Court will stay investigation/trial in Manohar Lal
Sharma versus Principal Secretary and ors. 18 [Coal Block
D
allocation cases] violated right or remedies of the affected parties
against an order framing charge. It was observed that the order framing
charge being interlocutory order, the same could not be interfered with
under Section 397(2) nor under Section 482 Cr.P.C.19 It was further
held that stay of proceedings could not be granted in PC Act cases even
under Section 482 Cr.P.C.20 It was further observed that though power E
under Article 227 is extremely vast, the same cannot be exercised on
the drop of a hat as held in Shalini Shyam Shetty versus Rajendra
Shankar Patil21 as under :
“37. … This reserve and exceptional power of judicial
intervention is not to be exercised just for grant of relief in F
individual cases but should be directed for promotion of
public confidence in the administration of justice in the
larger public interest whereas Article 226 of the Constitution
is meant for protection of individual grievance. Therefore,
the power under Article 227 may be unfettered but its exercise is
subject to high degree of judicial discipline pointed out above.” G
16
(1980) Supp. SCC 92
17
(2017) 14 SCC 809
18
(2014) 9 SCC 516
19
Paras 24,25, 27
20
Para 32
21
(2010) 8 SCC 329 H
1070 SUPREME COURT REPORTS [2018] 2 S.C.R.

A 21. It was observed that power under Section 482 Cr.P.C. could
be exercised only in rarest of rare cases and not otherwise.
38. The Criminal Procedure Code is undoubtedly a complete
code in itself. As has already been discussed by us, the
discretionary jurisdiction under Section 397(2) CrPC is to
B be exercised only in respect of final orders and intermediate
orders. The power under Section 482 CrPC is to be exercised
only in respect of interlocutory orders to give effect to an
order passed under the Criminal Procedure Code or to
prevent abuse of the process of any court or otherwise to
serve the ends of justice. As indicated above, this power has
C to be exercised only in the rarest of rare cases and not
otherwise. If that is the position, and we are of the view that
it is so, resort to Articles 226 and 227 of the Constitution
would be permissible perhaps only in the most extraordinary
case. To invoke the constitutional jurisdiction of the High
D Court when the Criminal Procedure Code restricts it in the
interest of a fair and expeditious trial for the benefit of the
accused person, we find it difficult to accept the proposition
that since Articles 226 and 227 of the Constitution are
available to an accused person, these provisions should be
resorted to in cases that are not the rarest of rare but for
E trifling issues.
22. Reliance was also placed on judgment by seven Judge Bench
in Kartar Singh versus State of Punjab22 laying down as follows:
“40. …If the High Courts entertain bail applications
F invoking their extraordinary jurisdiction under Article 226
and pass orders, then the very scheme and object of the Act
and the intendment of Parliament would be completely
defeated and frustrated. But at the same time it cannot be
said that the High Courts have no jurisdiction. Therefore,
we totally agree with the view taken by this Court in Abdul
G Hamid Haji Mohammed [(1994) 2 SCC 664] that if the High
Court is inclined to entertain any application under Article
226, that power should be exercised most sparingly and only
in rare and appropriate cases in extreme circumstances.
What those rare cases are and what would be the
22
H (1994) 3 SCC 569
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1071
[ADARSH KUMAR GOEL, J.]

circumstances that would justify the entertaining of A
applications under Article 226 cannot be put in straitjacket.”
23. It was further observed that no stay could be granted in PC
Act cases in view of bar contained in Section 19(3)(c). The relevant
observations are :
“64. A reading of Section 19(3) of the PC Act indicates that B
it deals with three situations: (i) Clause (a) deals a situation
where a final judgment and sentence has been delivered by
the Special Judge. We are not concerned with this situation.
(ii) Clause (b) deals with a stay of proceedings under the
PC Act in the event of any error, omission or irregularity in
C
the grant of sanction by the authority concerned to prosecute
the accused person. It is made clear that no court shall grant
a stay of proceedings on such a ground except if the court is
satisfied that the error, omission or irregularity has resulted
in a failure of justice—then and only then can the court grant
a stay of proceedings under the PC Act. (iii) Clause (c) D
provides for a blanket prohibition against a stay of
proceedings under the PC Act even if there is a failure of
justice [subject of course to Clause (b)]. It mandates that
no court shall stay proceedings “on any other ground” that
is to say any ground other than a ground relatable to the
E
error, omission or irregularity in the sanction resulting in a
failure of justice.
65. A conjoint reading of clause (b) and clause (c) of Section
19(3) of the PC Act makes it is clear that a stay of
proceedings could be granted only and only if there is an
error, omission or irregularity in the sanction granted for a F
prosecution and that error, omission or irregularity has
resulted in a failure of justice. There is no other situation
that is contemplated for the grant of a stay of proceedings
under the PC Act on any other ground whatsoever, even if
there is a failure of justice. Clause (c) additionally mandates G
a prohibition on the exercise of revision jurisdiction in respect
of any interlocutory order passed in any trial such as those
that we have already referred to. In our opinion, the
provisions of clauses (b) and (c) of Section 19(3) of the PC
Act read together are quite clear and do not admit of any
ambiguity or the need for any further interpretation.” H
1072 SUPREME COURT REPORTS [2018] 2 S.C.R.

A 24. We may also refer to the observations of the Constitution
Bench in Ratilal Bhanji Mithani versus Asstt. Collector of Customs,
Bombay and Anr.23 about the nature of inherent power of the High
Court:
“The inherent powers of the High Court preserved by Section
B 561-A of the Code of Criminal Procedure are thus vested in
it by “law” within the meaning of Art. 21. The procedure for
invoking the inherent powers is regulated by rules framed by
the High Court. The power to make such rules is conferred on
the High Court by the Constitution. The rules previously in force
were contained in force by Article 372 of the Constitution.”
C
25. As rightly noted in the impugned judgment, a Bench of seven
Judges in L.Chandra Kumar (supra) held that power of the High Court
to exercise jurisdiction under Article 227 was part of the basic structure
of the Constitution.
26. Thus, even though in dealing with different situations, seemingly
D
conflicting observations may have been made while holding that the order
framing charge was interlocutory order and was not liable to be interfered
with under Section 397(2) or even under Section 482 Cr.P.C., the principle
laid down in Madhu Limaye (supra) still holds the field. Order framing
charge may not be held to be purely a interlocutory order and can in a
E given situation be interfered with under Section 397(2) Cr.P.C. or 482
Cr.P.C. or Article 227 of the Constitution which is a constitutional provision
but the power of the High Court to interfere with an order framing charge
and to grant stay is to be exercised only in an exceptional situation.
27. We have thus no hesitation in concluding that the High Court
F has jurisdiction in appropriate case to consider the challenge against an
order framing charge and also to grant stay but how such power is to be
exercised and when stay ought to be granted needs to be considered
further.
28. As observed in Girish Kumar Suneja (supra) in the PC Act
G cases, the intention of legislature is expeditious conclusion of trial on
day-to-day basis without any impediment through the stay of proceedings
and this concern must be respected. This Court also noted the proviso
to Section 397(1) Cr.P.C. added by Section 22(d) of the PC Act that a
revisional court shall not ordinarily call for the record of proceedings. If
23
H [1967] 3 SCR 926
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1073
[ADARSH KUMAR GOEL, J.]

record is called, the Special Judge may not be able to proceed with the A
trial which will stand indirectly stayed. The right of the accused has to
be considered vis-à-vis the interest of the society. As already noted, the
bench of seven Judges in Kartar Singh (supra) held that even
constitutional power of the High Court under Article 226 which was
very wide ought to be used with circumspection in accordance with
B
judicial consideration and well established principles. The power should
be exercised sparingly in rare and extreme circumstances.
29. It is well accepted that delay in a criminal trial, particularly in
the PC Act cases, has deleterious effect on the administration of justice
in which the society has a vital interest. Delay in trials affects the faith
in Rule of Law and efficacy of the legal system. It affects social welfare C
and development. Even in civil or tax cases it has been laid down that
power to grant stay has to be exercised with restraint. Mere prima
facie case is not enough. Party seeking stay must be put to terms and
stay should not be incentive to delay. The order granting stay must
show application of mind. The power to grant stay is coupled with D
accountability24.
30. Wherever stay is granted, a speaking order must be passed
showing that the case was of exceptional nature and delay on account
of stay will not prejudice the interest of speedy trial in a corruption case.
Once stay is granted, proceedings should not be adjourned and concluded E
within two-three months.
31. The wisdom of legislature and the object of final and expeditious
disposal of a criminal proceeding cannot be ignored. In exercise of its
power the High Court is to balance the freedom of an individual on the
one hand and security of the society on the other. Only in case of patent F
illegality or want of jurisdiction the High Court may exercise its jurisdiction.
The acknowledged experience is that where challenge to an order framing
charge is entertained, the matter remains pending for long time which
defeats the interest of justice.
32. We have already quoted the judicial experience as noted in the G
earlier judgments in Para 9 above that trial of corruption cases is not
24
Siliguri Municipality vs. Amalendu Das (1984) 2 SCC 436 para 4; Assistant
Collector of Central Excise, Chandan Nagar, West Bengal vs. Dunlop India Ltd. and
Ors. (1985) 1 SCC 260 para 5; Union Territory of Pondicherry and Ors. vs. P.V.
Suresh and Ors. (1994) 2 SCC 70 para 15; and State of West Bengal and Ors. vs.
Calcutta Hardware Stores and Ors. (1986) 2 SCC 203 para 5 H
1074 SUPREME COURT REPORTS [2018] 2 S.C.R.

A permitted to proceed on account of challenge to the order of charge
before the High Courts. Once stay is granted, disposal of a petition before
the High Court takes long time. Consideration of the challenge against
an order of framing charge may not require meticulous examination of
voluminous material which may be in the nature of a mini trial. Still, the
Court is at times called upon to do so inspite of law being clear that at
B
the stage of charge the Court has only to see as to whether material on
record reasonably connects the accused with the crime. Constitution
Bench of this Court in Hardeep Singh versus State of Punjab25
observed:
100. However, there is a series of cases wherein this Court
C while dealing with the provisions of Sections 227, 228, 239,
240, 241, 242 and 245 CrPC, has consistently held that the
court at the stage of framing of the charge has to apply its
mind to the question whether or not there is any ground for
presuming the commission of an offence by the accused. The
D court has to see as to whether the material brought on record
reasonably connect the accused with the offence. Nothing
more is required to be enquired into. While dealing with the
aforesaid provisions, the test of prima facie case is to be
applied. The court has to find out whether the materials
offered by the prosecution to be adduced as evidence are
E sufficient for the court to proceed against the accused further.
(Vide State of Karnataka v. L. Muniswamy[(1977) 2 SCC
699], All India Bank Officers’ Confederation v. Union of
India[(1989) 4 SCC 90] Stree Atyachar Virodhi Parishad v.
Dilip Nathumal Chordia [(1989) 1 SCC 715] State of M.P. v.
F Krishna Chandra Saksena [(1996) 11 SCC 439] and State
of M.P. v. Mohanlal Soni [(2000) 6 SCC 338]
101. In Dilawar Balu Kurane v. State of Maharashtra [(2002)
2 SCC 135] this Court while dealing with the provisions of
Sections 227 and 228 CrPC, placed a very heavy reliance
G on the earlier judgment of this Court in Union of India v.
Prafulla Kumar Samal [(1979) 3 SCC 4] and held that while
considering the question of framing the charges, the court
may weigh the evidence for the limited purpose of finding
out whether or not a prima facie case against the accused
25
H (2014) 3 SCC 92
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1075
[ADARSH KUMAR GOEL, J.]

has been made out and whether the materials placed before A
the court disclose grave suspicion against the accused which
has not been properly explained. In such an eventuality, the
court is justified in framing the charges and proceeding with
the trial. The court has to consider the broad probabilities
of the case, the total effect of the evidence and the documents
B
produced before the court but the court should not make a
roving enquiry into the pros and cons of the matter and weigh
evidence as if it is conducting a trial.
102. In Suresh v. State of Maharashtra[(2001) 3 SCC 703],
this Court after taking note of the earlier judgments in
Niranjan Singh Karam Singh Punjabi v. Jitendra Bhimraj C
Bijjaya[(1990) 4 SCC 76] and State of Maharashtra v. Priya
Sharan Maharaj[(1997) 4 SCC 393], held as under: (Suresh
case, SCC p. 707, para 9)
“9. … at the stage of Sections 227 and 228 the court is
required to evaluate the material and documents on record D
with a view to finding out if the facts emerging therefrom
taken at their face value disclose the existence of all the
ingredients constituting the alleged offence. The court may,
for this limited purpose, sift the evidence as it cannot be
expected even at that initial stage to accept all that the E
prosecution states as the gospel truth even if it is opposed to
common sense or the broad probabilities of the case.
Therefore, at the stage of framing of the charge the court
has to consider the material with a view to find out if there is
ground **for presuming that the accused has committed the
offence** or that there is not sufficient ground for proceeding F
against him and** not for the purpose of arriving at the
conclusion that it is not likely to lead to a conviction** .
(Priya Sharan case, SCC p. 397, para 8)”
(emphasis in original)
G
103. Similarly in State of Bihar v. Ramesh Singh[(1997) 4
SCC 39], while dealing with the issue, this Court held: (SCC
p. 42, para 4)
“4. … If the evidence which the prosecutor proposes to
adduce to prove the guilt of the accused even if fully accepted
H
1076 SUPREME COURT REPORTS [2018] 2 S.C.R.

A before it is challenged in cross-examination or rebutted by
the defence evidence, if any, cannot show that the accused
committed the offence, then there will be no sufficient ground
for proceeding with the trial.”
33. If contrary to the above law, at the stage of charge, the High
B Court adopts the approach of weighing probabilities and re-appreciate
the material, it may be certainly a time consuming exercise. The legislative
policy of expeditious final disposal of the trial is thus, hampered. Thus,
even while reiterating the view that there is no bar to jurisdiction of the
High Court to consider a challenge against an order of framing charge in
exceptional situation for correcting a patent error of lack of jurisdiction,
C exercise of such jurisdiction has to be limited to rarest of rare cases.
Even if a challenge to order framing charge is entertained, decision of
such a petition should not be delayed. Though no mandatory time limit
can be fixed, normally it should not exceed two-three months. If stay is
granted, it should not normally be unconditional or of indefinite duration.
D Appropriate conditions may be imposed so that the party in whose favour
stay is granted is accountable if court finally finds no merit in the matter
and the other side suffers loss and injustice. To give effect to the legislative
policy and the mandate of Article 21 for speedy justice in criminal cases,
if stay is granted, matter should be taken on day-to-day basis and
concluded within two-three months. Where the matter remains pending
E for longer period, the order of stay will stand vacated on expiry of six
months, unless extension is granted by a speaking order showing
extraordinary situation where continuing stay was to be preferred to the
final disposal of trial by the trial Court. This timeline is being fixed in
view of the fact that such trials are expected to be concluded normally
F in one to two years.
34. In Imtiaz Ahmad versus State of U.P.26 this Court after
considering a report noted:
“(a) As high as 9% of the cases have completed more than
twenty years since the date of stay order.
G
(b) Roughly 21% of the cases have completed more than ten
years.
(c) Average pendency per case (counted from the date of
stay order till 26-7-2010) works out to be around 7.4 years.
H 26
(2012) 2 SCC 688
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1077
[ADARSH KUMAR GOEL, J.]

(d) Charge-sheet was found to be the most prominent stage A
where the cases were stayed with almost 32% of the cases
falling under this category. The next two prominent stages
are found to be ‘appearance’ and ‘summons’, with each
comprising 19% of the total number of cases. If
‘appearance’ and ‘summons’ are considered
B
interchangeable, then they would collectively account for
the maximum of stay orders.”
After noting the above scenario, the Court directed :
“55. Certain directions are given to the High Courts for better
maintenance of the rule of law and better administration of C
justice:
While analysing the data in aggregated form, this Court
cannot overlook the most important factor in the
administration of justice. The authority of the High Court to
order stay of investigation pursuant to lodging of FIR, or D
trial in deserving cases is unquestionable. But this Court is
of the view that the exercise of this authority carries with it
the responsibility to expeditiously dispose of the case. The
power to grant stay of investigation and trial is a very
extraordinary power given to the High Courts and the same
power is to be exercised sparingly only to prevent an abuse E
of the process and to promote the ends of justice. It is therefore
clear that:
(i) Such an extraordinary power has to be exercised with
due caution and circumspection.
F
(ii) Once such a power is exercised, the High Court should
not lose sight of the case where it has exercised its
extraordinary power of staying investigation and trial.
(iii) The High Court should make it a point of finally
disposing of such proceedings as early as possible but
G
preferably within six months from the date the stay order is
issued.
56. It is true that this Court has no power of superintendence
over the High Court as the High Court has over District
Courts under Article 227 of the Constitution. Like this Court,
H
1078 SUPREME COURT REPORTS [2018] 2 S.C.R.

A the High Court is equally a superior court of record with
plenary jurisdiction. Under our Constitution the High Court
is not a court subordinate to this Court. This Court, however,
enjoys appellate powers over the High Court as also some
other incidental powers. But as the last court and in exercise
of this Court’s power to do complete justice which includes
B
within it the power to improve the administration of justice
in public interest, this Court gives the aforesaid guidelines
for sustaining common man’s faith in the rule of law and the
justice delivery system, both being inextricably linked.”
35. In view of above, situation of proceedings remaining pending
C for long on account of stay needs to be remedied. Remedy is required
not only for corruption cases but for all civil and criminal cases where on
account of stay, civil and criminal proceedings are held up. At times,
proceedings are adjourned sine die on account of stay. Even after stay
is vacated, intimation is not received and proceedings are not taken up.
D In an attempt to remedy this, situation, we consider it appropriate to
direct that in all pending cases where stay against proceedings of a civil
or criminal trial is operating, the same will come to an end on expiry of
six months from today unless in an exceptional case by a speaking order
such stay is extended. In cases where stay is granted in future, the same
will end on expiry of six months from the date of such order unless
E similar extension is granted by a speaking order. The speaking order
must show that the case was of such exceptional nature that continuing
the stay was more important than having the trial finalized. The trial
Court where order of stay of civil or criminal proceedings is produced,
may fix a date not beyond six months of the order of stay so that on
F expiry of period of stay, proceedings can commence unless order of
extension of stay is produced.
36. Thus, we declare the law to be that order framing charge is
not purely an interlocutory order nor a final order. Jurisdiction of the
High Court is not barred irrespective of the label of a petition, be it under
G Sections 397 or 482 Cr.P.C. or Article 227 of the Constitution. However,
the said jurisdiction is to be exercised consistent with the legislative policy
to ensure expeditious disposal of a trial without the same being in any
manner hampered. Thus considered, the challenge to an order of charge
should be entertained in a rarest of rare case only to correct a patent
error of jurisdiction and not to re-appreciate the matter. Even where
H such challenge is entertained and stay is granted, the matter must be
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1079

decided on day-to-day basis so that stay does not operate for an unduly A
long period. Though no mandatory time limit may be fixed, the decision
may not exceed two-three months normally. If it remains pending longer,
duration of stay should not exceed six months, unless extension is granted
by a specific speaking order, as already indicated. Mandate of speedy
justice applies to the PC Act cases as well as other cases where at trial
B
stage proceedings are stayed by the higher court i.e. the High Court or
a court below the High Court, as the case may be. In all pending matters
before the High Courts or other courts relating to PC Act or all other
civil or criminal cases, where stay of proceedings in a pending trial is
operating, stay will automatically lapse after six months from today unless
extended by a speaking order on above parameters. Same course may C
also be adopted by civil and criminal appellate/revisional courts under
the jurisdiction of the High Courts. The trial courts may, on expiry of
above period, resume the proceedings without waiting for any other
intimation unless express order extending stay is produced.
37. The High Courts may also issue instructions to this effect and D
monitor the same so that civil or criminal proceedings do not remain
pending for unduly period at the trial stage.
38. The question referred stands answered. The matter along with
other connected matters, may now be listed before an appropriate Bench
as first matter, subject to overnight part-heard, on Wednesday, the 18th E
April, 2018.
A copy of this order be sent to all the High Courts for necessary
action.
Note: Highlighting in quotations is by us
F

R. F. NARIMAN, J. (Concurring) 1. The cancer of corruption
has, as we all know, eaten into the vital organs of the State. Cancer is a
dreaded disease which, if not nipped in the bud in time, causes death. In
British India, the Penal Code dealt with the cancer of corruption by
G
public servants in Chapter IX thereof. Even before independence, these
provisions were found to be inadequate to deal with the rapid onset of
this disease as a result of which the Prevention of Corruption Act, 1947,
was enacted. This Act was amended twice – once by the Criminal Law
(Amendment) Act, 1952 and a second time by the Anti-Corruption Laws
(Amendment) Act, 1964, based on the recommendations of the H
1080 SUPREME COURT REPORTS [2018] 2 S.C.R.

A Santhanam Committee. A working of the 1947 Act showed that it was
found to be inadequate to deal with the disease of corruption effectively
enough. For this reason, the Prevention of Corruption Act, 1988 was
enacted (hereinafter referred to as “the Act”). The Statement of Objects
and Reasons for the Act is revealing and is set out hereinbelow:
B “STATEMENT OF OBJECTS AND REASONS
1.The Bill is intended to make the existing anti-corruption laws
more effective by widening their coverage and by strengthening
the provisions.
2.The Prevention of Corruption Act, 1947, was amended in 1964
C based on the recommendations of the Santhanam Committee.
There are provisions in Chapter IX of the Indian Penal Code to
deal with public servants and those who abet them by way of
criminal misconduct. There are also provisions in the Criminal
Law Amendment Ordinance, 1944, to enable attachment of ill-
gotten wealth obtained through corrupt means, including from
D transferees of such wealth. The Bill seeks to incorporate all these
provisions with modifications so as to make the provisions more
effective in combating corruption among public servants.
3.The Bill, inter alia, envisages widening the scope of the definition
of the expression “public servant”, incorporation of offences
E under Sections 161 to 165-A of the Indian Penal Code,
enhancement of penalties provided for these offences and
incorporation of a provision that the order of the trial court
upholding the grant of sanction for prosecution would be final if
it has not already been challenged and the trial has commenced.
In order to expedite the proceedings, provisions for day-to-day
F trial of cases and prohibitory provisions with regard to grant of
stay and exercise of powers of revision on interlocutory orders
have also been included.
4.Since the provisions of Sections 161 to 165-A are incorporated
in the proposed legislation with an enhanced punishment, it is not
G necessary to retain those sections in the Indian Penal Code.
Consequently, it is proposed to delete those sections with the
necessary saving provision.
5.The notes on clauses explain in detail the provisions of the
Bill.”
H (Emphasis Supplied)
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1081
[R. F. NARIMAN, J.]

2. Section 2(c) defines “public servant”. The definition is A
extremely wide and includes within its ken even arbitrators or other
persons to whom any cause or matter has been referred for decision or
report by a court of justice or by a competent public authority – (See
Section 2(c)(vi)). Also included are office bearers of registered co-
operative societies engaged in agriculture, industry, trade or banking,
B
who receive financial aid from the Government – (See Section 2(c)(ix)).
Office bearers or employees of educational, scientific, social, cultural or
other institutions in whatever manner established, receiving financial
assistance from the Government or local or other public authorities are
also included (see Section 2(c)(xii)). The two explanations to Section
2(c) are also revealing - whereas Explanation 1 states that in order to be C
a public servant, one need not be appointed by Government, Explanation
2 refers to a de facto, as opposed to a de jure, public servant, discounting
whatever legal defect there may be in his right to hold that “situation”.
3. Section 4(4) is of great importance in deciding these appeals,
and is set out hereinbelow: D
“4. Cases triable by special Judges.—
(1) - (3) xxx xxx xxx
(4) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973, a special Judge shall, as far as practicable,
hold the trial of an offence on day-to-day basis.” E
Section 22 applies the Code of Criminal Procedure, 1973, subject to
modifications which ensure timely disposal of cases, under this special
Act. Section 22 reads as under:
“22. The Code of Criminal Procedure, 1973 to apply
subject to certain modifications.— F

The provisions of the Code of Criminal Procedure 1973, shall in
their application to any proceeding in relation to an offence
punishable under this Act have effect as if,—
(a) in sub-section (1) of Section 243, for the words “The accused G
shall then be called upon,” the words “The accused shall then be
required to give in writing at once or within such time as the
court may allow, a list of the persons (if any) whom he proposes
to examine as his witnesses and of the documents (if any) on
which he proposes to rely and he shall then be called upon” had
been substituted; H
1082 SUPREME COURT REPORTS [2018] 2 S.C.R.

A (b) in sub-section (2) of Section 309, after the third proviso, the
following proviso had been inserted, namely: —
“Provided also that the proceeding shall not be adjourned or
postponed merely on the ground that an application under Section
397 has been made by a party to the proceeding.”;
B (c) after sub-section (2) of Section 317, the following sub-section
had been inserted, namely:—
“(3) Notwithstanding anything contained in sub-section (1) or
sub-section (2), the Judge may, if he thinks fit and for reasons to
be recorded by him, proceed with inquiry or trial in the absence
C of the accused or his pleader and record the evidence of any
witness subject to the right of the accused to recall the witness
for cross-examination.”;
(d) in sub-section (1) of Section 397, before the Explanation, the
following proviso had been inserted, namely:—
D
“Provided that where the powers under this section are exercised
by a court on an application made by a party to such proceedings,
the court shall not ordinarily call for the record of the
proceedings—
(a) without giving the other party an opportunity of showing cause
E
why the record should not be called for; or
(b) if it is satisfied that an examination of the record of the
proceedings may be made from the certified copies.”
Under Section 27, powers of appeal and revision, conferred by the Code
F of Criminal Procedure, are to be exercised “subject to the provisions of
this Act”. Section 27 reads as follows:
“27. Appeal and revision.—
Subject to the provisions of this Act, the High Court may exercise,
so far as they may be applicable, all the powers of appeal and
G revision conferred by the Code of Criminal Procedure, 1973, on
a High court as if the Court of the special Judge were a Court of
Session trying 12 cases within the local limits of the High Court.”
4. The bone of contention in these appeals is the true interpretation
of Section 19(3)(c) of the Act, and whether superior constitutional courts,
H
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1083
[R. F. NARIMAN, J.]

namely, the High Courts in this country, are bound to follow Section A
19(3)(c) in petitions filed under Articles 226 and 227 of the Constitution
of India. An allied question is whether the inherent powers of High Courts
are available to stay proceedings under the Act under Section 482 of the
Code of Criminal Procedure. Section 19 reads as follows:
“19. Previous sanction necessary for prosecution.— B
(1) No court shall take cognizance of an offence punishable under
Sections 7, 10, 11, 13 and 15 alleged to have been committed by
a public servant, except with the previous sanction, [save as
otherwise provided in the Lokpal and Lokayuktas Act, 2013] —
(a) in the case of a person who is employed in connection with C
the affairs of the Union and is not removable from his office
save by or with the sanction of the Central Government, of that
Government;
(b) in the case of a person who is employed in connection with
the affairs of a State and is not removable from his office save D
by or with the sanction of the State Government, of that
Government;
(c) in the case of any other person, of the authority competent to
remove him from his office.
E
(2) Where for any reason whatsoever any doubt arises as to
whether the previous sanction as required under sub-section (1)
should be given by the Central Government or the State
Government or any 9 other authority, such sanction shall be given
by that Government or authority which would have been
competent to remove the public servant from his office at the F
time when the offence was alleged to have been committed.
(3) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 —
(a) no finding, sentence or order passed by a Special Judge shall
be reversed or altered by a Court in appeal, confirmation or G
revision on the ground of the absence of, or any error, omission,
irregularity in, the sanction required under sub-section (1), unless
in the opinion of that court, a failure of justice has, in fact, been
occasioned thereby;
H
1084 SUPREME COURT REPORTS [2018] 2 S.C.R.

A (b) no court shall stay the proceedings under this Act on the
ground of any error, omission or irregularity in the sanction granted
by the authority, unless it is satisfied that such error, omission or
irregularity has resulted in a failure of justice;
(c) no court shall stay the proceedings under this Act on any
B other ground and no court shall exercise the powers of revision
in relation to any interlocutory order passed in inquiry, trial, appeal
or other proceedings.
(4) In determining under sub-section (3) whether the absence
of, or any error, omission or irregularity in, such sanction has
C occasioned or resulted in a failure of justice the Court shall have
regard to the fact whether the objection could and should have
been raised at any earlier stage in the proceedings.
Explanation. — For the purposes of this section, — (a) error
includes competency of the authority to grant sanction;
D (b) a sanction required for prosecution includes reference to any
requirement that the prosecution shall be at the instance of a
specified authority or with the sanction of a specified person or
any requirement of a similar nature.”
5. On a reference made to a 2-Judge Bench in the Delhi High
E Court, the learned Chief Justice framed, what he described as, “three
facets which emanate for consideration”, as follows:
“(a) Whether an order framing charge under the 1988 Act would
be treated as an interlocutory order thereby barring the exercise
of revisional power of this Court?
F
(b) Whether the language employed in Section 19 of the 1988
Act which bars the revision would also bar the exercise of power
under Section 482 of the Cr.P.C. for all purposes?
(c) Whether the order framing charge can be assailed under
Article 227 of the Constitution of India?”
G
Answers given to the “three facets” are in paragraph 33 as
follows:
“33. In view of our aforesaid discussion, we proceed to answer
the reference on following terms:
H
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1085
[R. F. NARIMAN, J.]

(a) An order framing charge under the Prevention of Corruption A
Act, 1988 is an interlocutory order.
(b) As Section 19(3)(c) clearly bars revision against an
interlocutory order and framing of charge being an interlocutory
order a revision will not be maintainable.
(c) A petition under Section 482 of the Code of Criminal B
Procedure and a writ petition preferred under Article 227 of the
Constitution of India are maintainable.
(d) Even if a petition under Section 482 of the Code of Criminal
Procedure or a writ petition under Article 227 of the Constitution
of India is entertained by the High Court under no circumstances C
an order of stay should be passed regard being had to the
prohibition contained in Section 19(3)(c) of the 1988 Act.
(e) The exercise of power either under Section 482 of the Code
of Criminal Procedure or under Article 227 of the Constitution
of India should be sparingly and in exceptional circumstances be D
exercised keeping in view the law laid down in Siya Ram Singh
(supra), Vishesh Kumar (supra), Khalil Ahmed Bashir Ahmed
(supra), Kamal Nath & Others (supra) Ranjeet Singh (supra)
and similar line of decisions in the field.
(f) It is settled law that jurisdiction under Section 482 of the Code E
of Criminal Procedure or under Article 227 of the Constitution
of India cannot be exercised as a “cloak of an appeal in disguise”
or to re- appreciate evidence. The aforesaid proceedings should
be used sparingly with great care, caution, circumspection and
only to prevent grave miscarriage of justice.” F
6. The arguments on both sides have been set out in the judgment
of brother Goel, J. and need not be reiterated.
7. A perusal of Section 19(3) of the Act would show that the
interdict against stay of proceedings under this Act on the ground of any
error, omission or irregularity in the sanction granted by the authority is G
lifted if the Court is satisfied that the error, omission or irregularity has
resulted in a failure of justice. Having said this in clause (b) of Section
19(3), clause (c) says that no Court shall stay proceedings under this
Act on any other ground. The contention on behalf of the Appellants
before us is that the expression “on any other ground” is referable only
H
1086 SUPREME COURT REPORTS [2018] 2 S.C.R.

A to grounds which relate to sanction and not generally to all proceedings
under the Act. Whereas learned counsel for the Respondents argues
that these are grounds referable to the proceedings under this Act and
there is no warrant to add words not found in sub-section (c), namely,
that these grounds should be relatable to sanction only.
B 8. We are of the view that the Respondents are correct in this
submission for the following reasons:
(i) Section 19(3)(b) subsumes all grounds which are relatable
to sanction granted. This is clear from the word “any”
making it clear that whatever be the error, omission or
C irregularity in sanction granted, all grounds relatable thereto
are covered.
(ii) This is further made clear by Explanation (a), which defines
an “error” as including competency of the authority to grant
sanction.
D (iii) The words “in the sanction granted by the authority”
contained in sub-clause (b) are conspicuous by their absence
in sub-clause(c), showing thereby that it is the proceedings
under the Act that are referred to.
(iv) The expression “on any other ground”, therefore, refers to
E and relates to all grounds that are available in proceedings
under the Act other than grounds which relate to sanction
granted by the authority.
(v) On the assumption that there is an ambiguity, and that there
are two views possible, the view which most accords with
F the object of the Act, and which makes the Act workable,
must necessarily be the controlling view. It is settled law
that even penal statutes are governed not only by their literal
language, but also by the object sought to be achieved by
Parliament. (See Ms. Eera through Dr. Manjula
Krippendorf v. State (Govt. of NCT of Delhi) and Anr.,
G
2017 SCC Online SC 787 at paragraphs 134-140).
(vi) In Madhu Limaye v. State of Maharashtra, (1977) 4
SCC 551 at 558, this Court held, “It has been pointed out
repeatedly, vide for example, The River Wear
Commissioners v. William Adamson (1876-77) 2 AC 743
H
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1087
[R. F. NARIMAN, J.]

and R.M.D. Chamarbaugwalla v. The Union of India, A
AIR 1957 SC 628, that although the words occurring in a
particular statute are plain and unambiguous, they have to
be interpreted in a manner which would fit in the context of
the other provisions of the statute and bring about the real
intention of the Legislature”. As the Statement of Objects
B
and Reasons extracted hereinabove makes it clear, Section
19(3)(c) is to be read with Section 4(4) and Section 22, all
of which make it clear that cases under the Act have to be
decided with utmost despatch and without any glitches on
the way in the form of interlocutory stay orders.1
(vii) It has been argued on behalf of the Appellants that sub- C
section (4) of Section 19 would make it clear that the subject
matter of Section 19, including sub-section (3), is sanction
and sanction alone. This argument is fallacious for the simple
reason that the subject matter of sub-section (4) is only in
the nature of a proviso to Section 19(3)(a) and (b), making D
1
Under Section 22(a), Section 243(1) of the Code of Criminal Procedure is tightened up
by requiring the accused to give in writing, at once or within such time as the Court may
allow, a list of persons whom he proposes to examine as witnesses and documents on
which he proposes to rely, so as to continue with the trial with utmost despatch.
Similarly, in sub-clause (b) of Section 22, under Section 309 a fourth proviso is inserted
ensuring that there shall be no adjournment merely on the ground that an application E
under Section 397 has been made by a party to the proceedings. Under sub-clause (c)
of Section 22, a Judge may, notwithstanding anything contained in Section 317(1) and
(2), if he thinks fit and for good reason, proceed with the enquiry or trial in the absence
of the accused or his pleader and record the evidence of any witness, subject to the right
of the accused to recall the witness for cross-examination. This again can be done so
that there is no delay in either the enquiry or trial proceedings under the Act. Insofar as
sub-clause (d) is concerned, this Court in Girish Kumar Suneja v. C.B.I., (2017) 14 F
SCC 809 at 847 has held:
“By adding the proviso to Section 397(1) CrPC, Parliament has made it
clear that it would be appropriate not to call for the records of the case
before the Special Judge even when the High Court exercises its revision
jurisdiction. The reason for this quite clearly is that once the records are
called for, the Special Judge cannot proceed with the trial. With a view
G
to ensure that the accused who has invoked the revision jurisdiction of
the High Court is not prejudiced and at the same time the trial is not
indirectly stayed or otherwise impeded, Parliament has made it clear
that the examination of the record of the Special Judge may also be
made on the basis of certified copies of the record. Quite clearly, the
intention of Parliament is that there should not be any impediment in
the trial of a case under the PC Act.” H
1088 SUPREME COURT REPORTS [2018] 2 S.C.R.

A it clear that the ground for stay qua sanction having
occasioned or resulted in a failure of justice should be taken
at the earliest, and if not so taken, would be rejected on this
ground alone.
(viii) Section 19(3)(c) became necessary to make it clear that
B proceedings under the Act can be stayed only in the
eventuality of an error, omission or irregularity in sanction
granted, resulting in failure of justice, and for no other
reason. It was for this reason that it was also necessary to
reiterate in the language of Section 397(2) of the Code of
Criminal Procedure, that in all cases, other than those
C covered by Section 19(3)(b), no court shall exercise the
power of revision in relation to interlocutory orders that
may be passed. It is also significant to note that the reach
of this part of Section 19(3)(c) is at every stage of the
proceeding, that is inquiry, trial, appeal or otherwise, making
D it clear that, in consonance with the object sought to be
achieved, prevention of corruption trials are not only to be
heard by courts other than ordinary courts, but disposed of
as expeditiously as possible, as otherwise corrupt public
servants would continue to remain in office and be cancerous
to society at large, eating away at the fabric of the nation.
E
9. The question as to whether the inherent power of a High Court
would be available to stay a trial under the Act necessarily leads us to an
inquiry as to whether such inherent power sounds in constitutional, as
opposed to statutory law. First and foremost, it must be appreciated that
the High Courts are established by the Constitution and are courts of
F record which will have all powers of such courts, including the power to
punish contempt of themselves (See Article 215). The High Court, being
a superior court of record, is entitled to consider questions regarding its
own jurisdiction when raised before it. In an instructive passage by a
Constitution Bench of this Court in In re Special Reference 1 of 1964,
G (1965) 1 SCR 413 at 499, Gajendragadkar, C.J. held:
“Besides, in the case of a superior Court of Record, it is for the
court to consider whether any matter falls within its jurisdiction
or not. Unlike a Court of limited jurisdiction, the superior Court is
entitled to determine for itself questions about its own jurisdiction.
H “Prima facie”, says Halsbury, “no matter is deemed to be beyond
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1089
[R. F. NARIMAN, J.]

the jurisdiction of a superior court unless it is expressly shown to A
be so, while nothing is within the jurisdiction of an inferior court
unless it is expressly shown on the face of the proceedings that
the particular matter is within the cognizance of the particular
court” [Halsbury’s Law of England, Vol. 9, p. 349].”
10. Also, in Ratilal Bhanji Mithani v. Assistant Collector of B
Customs, 1967 SCR (3) 926 at 930-931, this Court had occasion to deal
with the inherent power of the High Court under Section 561-A of the
Code of Criminal Procedure, 1898, which is equivalent to Section 482 of
the Code of Criminal Procedure, 1973. It was held that the said Section
did not confer any power, but only declared that nothing in the Code
shall be deemed to limit or affect the existing inherent powers of the C
High Court. The Court then went on to hold:
“The proviso to the article is not material and need not be read.
The article enacts that the jurisdiction of the existing High Courts
and the powers of the judges thereof in relation to administration
of justice “shall be” the same as immediately before the D
commencement of the Constitution. The Constitution confirmed
and re-vested in the High Court all its existing powers and
jurisdiction including its inherent powers, and its power to make
rules. When the Constitution or any enacted law has embraced
and confirmed the inherent powers and jurisdiction of the High E
Court which previously existed, that power and jurisdiction has
the sanction of an enacted “law” within the meaning of Art.
21 as explained in A. K. Gopalan’s case (1950 SCR 88). The
inherent powers of the High Court preserved by Sec. 561-A of
the Code of Criminal Procedure are thus vested in it by “law”
within the meaning of Art. 21. The procedure for invoking the F
inherent powers is regulated by rules framed by the High Court.
The power to make such rules is conferred on the High Court by
the Constitution. The rules previously in force were continued in
force by Article 372 of the Constitution. The order of the High
Court canceling the bail and depriving the appellant of his personal G
liberty is according to procedure established by law and is not
violative of Art. 21.”
11. It is thus clear that the inherent power of a Court set up by the
Constitution is a power that inheres in such Court because it is a superior
court of record, and not because it is conferred by the Code of Criminal H
1090 SUPREME COURT REPORTS [2018] 2 S.C.R.

A Procedure. This is a power vested by the Constitution itself, inter alia,
under Article 215 as aforestated. Also, as such High Courts have the
power, nay, the duty to protect the fundamental rights of citizens under
Article 226 of the Constitution, the inherent power to do justice in cases
involving the liberty of the citizen would also sound in Article 21 of the
Constitution. This being the constitutional position, it is clear that Section
B
19(3)(c) cannot be read as a ban on the maintainability of a petition filed
before the High Court under Section 482 of the Code of Criminal
Procedure, the non-obstante clause in Section 19(3) applying only to the
Code of Criminal Procedure. The judgment of this Court in Satya
Narayan Sharma v. State of Rajasthan, (2001) 8 SCC 607 at paragraphs
C 14 and 15 does not, therefore, lay down the correct position in law.
Equally, in paragraph 17 of the said judgment, despite the clarification
that proceedings can be “adapted” in appropriate cases, the Court went
on to hold that there is a blanket ban of stay of trials and that, therefore,
Section 482, even as adapted, cannot be used for the aforesaid purpose.
This again is contrary to the position in law as laid down hereinabove.
D
This case, therefore, stands overruled.
12. At this juncture it is important to consider the 3-Judge bench
decision in Madhu Limaye (supra). A 3-Judge bench of this Court
decided that a Section 482 petition under the Code of Criminal Procedure
would be maintainable against a Sessions Judge order framing a charge
E against the appellant under Section 500 of the Penal Code, despite the
prohibition contained in Section 397(2) of the Code of Criminal Procedure.
This was held on two grounds. First, that even if Section 397(1) was out
of the way because of the prohibition contained in Section 397(2), the
inherent power of the Court under Section 482 of the Code of Criminal
F Procedure would be available. This was held after referring to Amar
Nath v. State of Haryana, (1977) 4 SCC 137, which was a 2-Judge
Bench decision, which decided that the inherent power contained in
Section 482 would not be available to defeat the bar contained in Section
397(2). The 3-Judge referred to the judgment in Amar Nath (supra)
and said:
G
“7. For the reasons stated hereinafter we think that the statement
of the law apropos Point No. 1 is not quite accurate and needs
some modulation. But we are going to reaffirm the decision of
the Court on the second point.”

H (at page 554)
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1091
[R. F. NARIMAN, J.]

This Court, in an important paragraph, then held: A
“10. As pointed out in Amar Nath case the purpose of putting a
bar on the power of revision in relation to any interlocutory order
passed in an appeal, inquiry, trial or other proceeding, is to bring
about expeditious disposal of the cases finally. More often than
not, the revisional power of the High Court was resorted to in B
relation to interlocutory orders delaying the final disposal of the
proceedings. The Legislature in its wisdom decided to check
this delay by introducing sub-section (2) in Section 397. On the
one hand, a bar has been put in the way of the High Court (as
also of the Sessions Judge) for exercise of the revisional power
in relation to any interlocutory order, on the other, the power has C
been conferred in almost the same terms as it was in the 1898
Code. On a plain reading of Section 482, however, it would follow
that nothing in the Code, which would include sub-section (2) of
Section 397 also, “shall be deemed to limit or affect the inherent
powers of the High Court”, But, if we were to say that the said D
bar is not to operate in the exercise of the inherent power at all,
it will be setting at naught one of the limitations imposed upon
the exercise of the revisional powers. In such a situation, what is
the harmonious way out? In our opinion, a happy solution of this
problem would be to say that the bar provided in sub-section (2)
of Section 397 operates only in exercise of the revisional power E
of the High Court, meaning thereby that the High Court will
have no power of revision in relation to any interlocutory order.
Then in accordance with one of the other principles enunciated
above, the inherent power will come into play, there being no
other provision in the Code for the redress of the grievance of F
the aggrieved party. But then, if the order assailed is purely of an
interlocutory character which could be corrected in exercise of
the revisional power of the High Court under the 1898 Code, the
High Court will refuse to exercise its inherent power. But in
case the impugned order clearly brings about a situation which is
an abuse of the process of the Court or for the purpose of securing G
the ends of justice interference by the High Court is absolutely
necessary, then nothing contained in Section 397(2) can limit or
affect the exercise of the inherent power by the High Court. But
such cases would be few and far between. The High Court must
exercise the inherent power very sparingly. One such case would H
1092 SUPREME COURT REPORTS [2018] 2 S.C.R.

A be the desirability of the quashing of a criminal proceeding initiated
illegally, vexatiously or as being without jurisdiction. Take for
example a case where a prosecution is launched under the
Prevention of Corruption Act without a sanction, then the trial of
the accused will be without jurisdiction and even after his acquittal
a second trial, after proper sanction will not be barred on the
B
doctrine of autrefois acquit. Even assuming, although we shall
presently show that it is not so, that in such a case an order of
the Court taking cognizance or issuing processes is an interlocutory
order, does it stand to reason to say that inherent power of the
High Court cannot be exercised for stopping the criminal
C proceeding as early as possible, instead of harassing the accused
up to the end? The answer is obvious that the bar will not operate
to prevent the abuse of the process of the Court and/or to secure
the ends of justice. The label of the petition filed by an aggrieved
party is immaterial. The High Court can examine the matter in
an appropriate case under its inherent powers. The present case
D
undoubtedly falls for exercise of the power of the High Court in
accordance with Section 482 of the 1973 Code, even assuming,
although not accepting, that invoking the revisional power of the
High Court is impermissible.
(at pages 555-556)
E
13. The second ground on which this case was decided was that
an order framing a charge was not a purely interlocutory order so as to
attract the bar of Section 392(2), but would be an “intermediate” class
of order, between a final and a purely interlocutory order, on the
application of a test laid down by English decisions and followed by our
F Courts, namely, that if the order in question is reversed, would the action
then go on or be terminated. Applying this test, it was held that in an
order rejecting the framing of a charge, the action would not go on and
would be terminated and for this reason also would not be covered by
Section 397(2).
G 14. This judgment was affirmed by a 4-Judge Bench in V.C. Shukla
v. State through C.B.I. (1980) Supp. SCC 92 at 128-129, where it was
held that under Section 11 of the Special Courts Act, 1979, the scheme
being different from the Code of Criminal Procedure, and the Section
opening with the words “notwithstanding anything in the Code”, the
H “intermediate” type of order would not obtain, and an order framing a
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1093
[R. F. NARIMAN, J.]

charge would, therefore, not be liable to be appealed against, being purely A
interlocutory in nature. While holding this, this Court was at pains to
point out:
“On a true construction of Section 11(1) of the Act and taking
into consideration the natural meaning of the expression
‘interlocutory order’, there can be no doubt that the order framing B
charges against the appellant under the Act was merely an
interlocutory order which neither terminated the proceedings nor
finally decided the rights of the parties. According to the test laid
down in Kuppuswami’s case the order impugned was undoubtedly
an interlocutory order. Taking into consideration, therefore, the
natural meaning of interlocutory order and applying the non C
obstante clause, the position is that the provisions of the Code of
Criminal Procedure are expressly excluded by the non obstante
clause and therefore s. 397(2) of the Code cannot be called into
aid in order to hold that the order impugned is not an interlocutory
order. As the decisions of this Court in the cases of Madhu Limaye D
v. State of Maharashtra and Amar Nath & v. State of Haryana
were given with respect to the provisions of the Code,
particularly s. 397(2), they were correctly decided and would
have no application to the interpretation of s. 11(1) of the Act,
which expressly excludes the provisions of the Code of Criminal
Procedure by virtue of the non obstante clause.” E

In Poonam Chand Jain and another v. Fazru, (2004) 13 SCC 269 at
276-279, this Court was at pains to point out that the judgment in V.C.
Shukla (supra) was rendered in the background of the special statute
applicable (See paragraph 13).
F
15. It is thus clear that Madhu Limaye (supra) continues to hold
the field, as has been held in V.C. Shukla (supra) itself. How Madhu
Limaye (supra) was understood in a subsequent judgment of this Court
is the next bone of contention between the parties.
16. In Girish Kumar Suneja v. C.B.I., (2017) 14 SCC 809, a 3- G
Judge Bench of this Court was asked to revisit paragraph 10 of its earlier
order dated 25th August, 2014, passed in the coal block allocation cases.
While transferring cases pending before different courts to the Court of
a Special Judge, this Court, in its earlier order dated 25th August, 2014,
had stated:
H
1094 SUPREME COURT REPORTS [2018] 2 S.C.R.

A “10. We also make it clear that any prayer for stay or impeding
the progress in the investigation/trial can be made only before
this Court and no other Court shall entertain the same.”
Several grounds were argued before this Court stating that paragraph
10 ought to be recalled. We are concerned with grounds (i), (ii) and
B (vii), which are set out hereinbelow:
“(i) The right to file a revision petition under Section 397 of the
Code of Criminal Procedure, 1973 or the Cr.P.C. as well
approaching the High Court under Section 482 of the Cr.P.C.
has been taken away;
C (ii) The order passed by this Court has taken away the right of
the appellants to file a petition under Articles 226 and 227 of the
Constitution and thereby judicial review, which is a part of the
basic structure of the Constitution, has been violated which even
Parliament cannot violate;
D (vii) The prohibition in granting a stay under Section 19(3)(c) of
the PC Act is not absolute and in an appropriate case, a stay of
proceedings could be granted in favour of an accused person
particularly when there is a failure of justice. Any restrictive
reading would entail a fetter on the discretion of the High Court
E which itself might lead to a failure of justice.”
This Court referred to the judgment in Amar Nath (supra) and then to
the Statement of Objects and Reasons for introducing 397(2) of the
Code of Criminal Procedure which, inter alia, stated as follows:
“(d) the powers of revision against interlocutory orders are being
F taken away, as it has been found to be one of the main contributing
factors in the delay or disposal of criminal cases;”
After referring to Madhu Limaye (supra) and the difference between
interlocutory and intermediate orders, this Court held in paragraphs 25,
29, 30 and 32 as follows:
G “25. This view was reaffirmed in Madhu Limaye when the
following principles were approved in relation to Section 482 of
the Cr.P.C. in the context of Section 397(2) thereof. The principles are:
“(1) That the power is not to be resorted to if there is a specific
provision in the Code for the redress of the grievance of the
H aggrieved party;
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1095
[R. F. NARIMAN, J.]

(2) That it should be exercised very sparingly to prevent abuse A
of process of any Court or otherwise to secure the ends of
justice;
(3) That it should not be exercised as against the express bar
of law engrafted in any other provision of the Code.”
Therefore, it is quite clear that the prohibition in Section 397 of B
the Cr.P.C. will govern Section 482 thereof. We endorse this
view.
xxx xxx xxx
29. This leads us to another facet of the submission made by C
learned counsel that even the avenue of proceeding under Section
482 of the Cr.P.C. is barred as far as the appellants are concerned.
As held in Amar Nath and with which conclusion we agree, if an
interlocutory order is not revisable due to the prohibition contained
in Section 397(2) of the Cr.P.C. that cannot be circumvented by
resort to Section 482 of the Cr.P.C. There can hardly be any D
serious dispute on this proposition.
30. What then is the utility of Section 482 CrPC? This was
considered and explained in Madhu Limaye [Madhu
Limaye v. State of Maharashtra, (1977) 4 SCC 551 : 1978 SCC
(Cri) 10] which noticed the prohibition in Section 397(2) CrPC E
and at the same time the expansive text of Section 482 CrPC
and posed the question: In such a situation, what is the harmonious
way out? This Court then proceeded to answer the question in
the following manner: (SCC pp. 555-56, para 10)
“10. … In such a situation, what is the harmonious way out? F
In our opinion, a happy solution of this problem would be to say
that the bar provided in sub-section (2) of Section 397 operates
only in exercise of the revisional power of the High Court,
meaning thereby that the High Court will have no power of
revision in relation to any interlocutory order. Then in accordance
G
with one of the other principles enunciated above, the inherent
power will come into play, there being no other provision in the
Code for the redress of the grievance of the aggrieved party.
But then, if the order assailed is purely of an interlocutory
character which could be corrected in exercise of the revisional
power of the High Court under the 1898 Code, the High Court H
1096 SUPREME COURT REPORTS [2018] 2 S.C.R.

A will refuse to exercise its inherent power. But in case the
impugned order clearly brings about a situation which is an
abuse of the process of the Court or for the purpose of securing
the ends of justice interference by the High Court is absolutely
necessary, then nothing contained in Section 397(2) can limit
or affect the exercise of the inherent power by the High Court.
B
But such cases would be few and far between. The High Court
must exercise the inherent power very sparingly.”
xxx xxx xxx
32. In Satya Narayan Sharma v. State of Rajasthan this Court
C considered the provisions of the PC Act and held that there could
be no stay of a trial under the PC Act. It was clarified that that
does not mean that the provisions of Section 482 of the Cr.P.C.
cannot be taken recourse to, but even if a litigant approaches the
High Court under Section 482 of the Cr.P.C. and that petition is
entertained, the trial under the PC Act cannot be stayed. The
D litigant may convince the court to expedite the hearing of the
petition filed, but merely because the court is not in a position to
grant an early hearing would not be a ground to stay the trial
even temporarily. With respect, we do not agree with the
proposition that for the purposes of a stay of proceedings recourse
E could be had to Section 482 of the Cr.P.C. Our discussion above
makes this quite clear.”
(at pages 832-834)
However, thereafter, this Court stated the law thus in paragraph 38:

F “38. The Criminal Procedure Code is undoubtedly a complete
code in itself. As has already been discussed by us, the
discretionary jurisdiction under Section 397(2) of the Cr.P.C. is
to be exercised only in respect of final orders and intermediate
orders. The power under Section 482 of the Cr.P.C. is to be
exercised only in respect of interlocutory orders to give effect to
G an order passed under the Cr.P.C. or to prevent abuse of the
process of any Court or otherwise to serve the ends of justice.
As indicated above, this power has to be exercised only in the
rarest of rare cases and not otherwise. If that is the position, and
we are of the view that it is so, resort to Articles 226 and 227 of
the Constitution would be permissible perhaps only in the most
H
ASIAN RESURFACING OF ROAD AGENCY v. C. B. I. 1097
[R. F. NARIMAN, J.]

extraordinary case. To invoke the constitutional jurisdiction of A
the High Court when the Cr.P.C. restricts it in the interest of a
fair and expeditious trial for the benefit of the accused person,
we find it difficult to accept the proposition that since Articles
226 and 227 of the Constitution are available to an accused person,
these provisions should be resorted to in cases that are not the
B
rarest of rare but for trifling issues.”
(at pages 835-836)
17. According to us, despite what is stated in paragraphs 25, 29
and 32 supra, the ratio of the judgment is to be found in paragraph 38,
which is an exposition of the law correctly setting out what has been C
held earlier in Madhu Limaye (supra). A judgment has to be read as a
whole, and if there are conflicting parts, they have to be reconciled
harmoniously in order to yield a result that will accord with an earlier
decision of the same bench strength. Indeed, paragraph 30 of the
judgment sets out a portion of paragraph 10 of Madhu Limaye (supra),
showing that the Court was fully aware that Madhu Limaye (supra) D
did not approve Amar Nath (supra) without a very important caveat –
and the caveat was that nothing in Section 397(2) can limit or affect the
exercise of the inherent power by the High Court. We, therefore, read
paragraph 38 as the correct ratio of the said judgment not only in terms
of the applicability of Section 482 of the Code of Criminal Procedure, E
but also in terms of how it is to be applied.
18. Insofar as petitions under Articles 226 and 227 are concerned,
they form part of the basic structure of the Constitution as has been held
in L. Chandra Kumar v. Union of India and others, (1997) 3 SCC
261 at 301. Here again, the judgment of a Constitution Bench in Kartar F
Singh v. State of Punjab, (1994) 3 SCC 569 at 714, puts it very well
when it says:
“Though it cannot be said that the High Court has no jurisdiction
to entertain an application for bail under Article 226 of the
Constitution and pass orders either way, relating to the cases G
under the Act 1987, that power should be exercised sparingly,
that too only in rare and appropriate cases in extreme
circumstances. But the judicial discipline and comity of courts
require that the High Courts should refrain from exercising the
extraordinary jurisdiction in such matters.”
H
1098 SUPREME COURT REPORTS [2018] 2 S.C.R.

A This aspect of Kartar Singh (supra) has been followed in Girish Kumar
Suneja (supra) in paragraph 40 thereof and we respectfully concur with
the same. In view of the aforesaid discussion, it is clear that the Delhi
High Court judgment’s conclusions in paragraph 33 (a), (b) and (d) must
be set aside.
B 19. I agree with Goel, J. that the appeals be disposed of in
accordance with his judgment.

Divya Pandey Referred questions answered.

C

D

E

F

G

H