Holding

All 36 fodder‑scam cases were transferred to the corresponding courts in Jharkhand because jurisdiction is fixed by the place of the main offence under the Prevention of Corruption Act and ‘exclusively’ means substantially all.

Summary

The Supreme Court examined whether 36 fodder‑scam cases, originally filed before the Special Court in Patna, were transferred to courts in the newly created State of Jharkhand under Section 89 of the Bihar Reorganisation Act, 2000. The Court held that the word “exclusively” in that provision means “substantially all or for the greater part” and that jurisdiction is determined by the place where the main offence under the Prevention of Corruption Act, 1988 was committed, i.e., the treasuries in Jharkhand. It further ruled that Section 4(2) of the Prevention of Corruption Act overrides the Code of Criminal Procedure provisions on jurisdiction. Consequently, all 36 cases were deemed transferred to the corresponding courts in Jharkhand, and the High Court’s order denying the transfer was set aside.

Issues considered

The meaning of ‘exclusively’ in Section 89 of the Bihar Reorganisation Act, 2000.
Whether jurisdiction over the 36 cases should be decided by reference to Section 4(2) of the Prevention of Corruption Act, 1988 or by CrPC sections 179, 180, 181.
Whether the place where the main offence under the PC Act was committed determines the appropriate court after the bifurcation of Bihar.
Whether the 36 cases stood transferred to Jharkhand courts on the appointed day, 15‑Nov‑2000.

Legislation cited

Bihar Reorganisation Act, 2000s. 89
Code of Criminal Procedure, 1973s. 179, s. 180, s. 181(4), s. 4(2)
Prevention of Corruption Act, 1988s. 13(1)(c), s. 13(1)(d), s. 4(2)

Subjects

jurisdictionterritorial jurisdictionsection 89 Bihar Reorganisation Actprevention of corruption actexclusive interpretationnoscitur a sociisspecial judgefodder scamstatutory interpretation

Judgment

C.B.I., A.H.D., PATNA A
v.
BRAJ BHUSHAN PRASAD AND ORS.

OCTOBER 5, 2001

[K.T. THOMAS, SYED SHAH MOHAMMED QUADRI AND B
U.C. BANERJEE, JJ.]

Bihar Reorganisation Act, 2000-Section 89-Prevention qf Corruption
Act, 1988-Sections 4(2), 13(l)(c) and 13(l)(d)-Case;; under Prevention qf
Corruption Act-Trial-Territorial jurisdiction~Detennination of-Cases.filed C
in erstwhile State qf Bihar-Cause of action in the cases arose in the
territories of State of Jharkhand-B(furcation qf State-Claim for transfer of
cases to courts in State of Jharkhand-Held, place of jurisdiction would be
detenninative by reference to the place where the main offence was committed

-- and not where the allied acts were committed-If Prevention of Corruption Act
stipulates place for trial qf the offence under the Act, the provision of Cr.P. C.
would stand displaced to that extent-Hence, the cases would be transferred
D

to the Courts in State of Jharkhand-Code of Criminal Procedure, 1973-
Sections 4(2), 179, 180.

Code qfCritninal Procedure, 1973/Prevention of Corruption Act, 1988-
E
Section 181 (4 )14(2)-Distinction between-Discussed.

Interpretation qf statutes-Interpretation should achieve the object ofthe
statute and should be made with pragmatism and not pedantically or in a stilted
manner.
F.

- Doctrines :

Noscitur a Sociis--Doctrine qf-Explained.

Words and Phrases :

"Exclusively"-Meaning qf-With reference to Section 89 of Bihar
G
Reorganisation Act, 2000.

64 cases relating to Fodder Scam were registereCI, wherein inquiry
was to be held by CBI. Out of them, in 36 cases, charge-sheet was filed by
C.B.I. in Special Court created under Prevention of Corruption Act, at H
627
628 SUPREME COURT REPORTS [2001] SUPP. 3 S.C.R.
A Patna.

After bifurcation of the erstwhile State of Bihar into State of Bihar
and State of Jharkhand by virtue of Bihar Reorganisation Act, 2000,
C.B.I. filed case before High Court claiming that the 36 cases in which the
~
place of commission of offence was theState of Jharkhand, stood transferred
B to the State of Jharkhand, on the midnight of 15.11.2000 i.e. the date when
the new State was born.

High Court held that since in ".iew of Sections 179 and 180 Cr.P.C., "-
the jurisdiction of the Court at Patna was not completely excluded "by
virtue of certain allied Acts committed at Patna", the proceedings could
c not be held to be exclusively relating to the Jharkhand State and, therefore,
the cases'could remain in the present State of Bihar.
~ I •

In appeal to this Court, C.B.I. contended that the jurisdiction of the
cases was exclusively in the Courts in the State of Jharkhand and that the
D question whether the Courts at Patna also had jqrisdiction had to be
determined by reference to Section 4(2) of Prevention of Corruption Act,
1988 and not in view of any provision of Cr. P.C.; and that meaning of the
--
term 'exclusively' in Section 89 of Reorganjsation Act should be understood
as "substantially all or for the greater part or principally."

E The respondents-accused contended that since the offences were --
committed by the officials located in Patna the test of exclusivity in Section
89 of the Reorganisation Act cannot absolve the Courts in Patna of their
jurisdiction to try the cases; and that the word 'exclusively' in Section 89
of the Reorganisation Act cannot have a meaning other than "to the
F exclusion of all others".

Disposing of the appeals, the Court

HELD : 1. All the 36 cases involved in the appeals stood transferred
to the corresponding courts situated within the territories of Jharkhand
G State on the appointed day (i.e. 15.11.2000) by the operation of Section 89
of Bihar Reorganisation Act, 2000. [645-E] ......

2. The place of jurisdiction would be determinative by reference to
the place where the main offence was committed. The fact that other allied
acts ~ere committed at different places would be hardly sufficient to
H change the venue of the trial to such other places. When it is certain where
C.B.I., A.H.D., PATNA v. BRAJ BHUSHAN PRASAD 629
exactly the offence under Section 13 of Prevention of Corruption Act, 1988 A
was committed it is an unnecessary exercise to ponder over the other areas
wherein certain allied activities, such as conspiracy or preparation, or
even the prefatory or incidental acts were done, including the consequences
ensued. [644-E; 641-H; 642-A]

Dhaneshwar Narain Saxena v. The Delhi Administration, [1962J 3 SCR B
259; M. Narayanan Nambiar v. State of Kerala, [1963] Suppl. 2 SCR 724;
The State of Gujarat v. Manshankar Prabhashankar Dwivedi, [1972] 2 SCC
392; Major S.K. Kale v. State of Maharashtra, [1977] 2 SCC 394; Un!on of
India v. Maj. l.C. Lala etc. etc., [1973] 2 SCC 72 ·and K. Bhaskaran v.
Sankaran Vaidhyan Balan and Am:, [1999] 7 SCC 510, distinguished. c
Banwarilal Jhunjhunwalla and Ors. v. Union of India, AIR (1959)
Kerala 311, approved. ·

Purushottamdas Dalmia v. The State of West Bengal, [1962] 2 SCR 101;
L.N. Mukherjee v. The State of Madras, [1962] 2 SCR 116 and Banwari Lal D
Jhujhunwala and Ors. v. Union of India and Am:, [1963] Supp. 2 SCR 338,
referred to.

3: As per mai~ object of Section 89 of the Reorganisation Act,
transfer of criminal cases is not the only subject covered by the Section.
The provision seeks to allocate the files or records relating to all proceedings, E
after the bifurcation if they were to be instituted after the appointed day.
Any interpretatiOn should be one which achiever that object and not that
which might create confusion or perplexity or even bewilderment to the
officers·of the respective States. In other words, the interpretation should
be made with pragmatism, not pedantically or in a stilted manner. For the F
purpose of criminal cases, the subject matter of the case to be transferred
has to be kept in mind. When so considering, it has to be taken into account
that all the 36 cases· are pri~ari1y for the offences under Prevention of
Corruption Act a.nd hence they are all triable before the Courts of Special
Judges. Hence, the present question can be determined by reference to the
provisions of Preve~tion of Corruption Act. [639-D; E] G

4. There is no doubt that when the offence is under Section 13(1)(c)
or Section 13(1)(d) of Prevention of Corruption Act the sole determinative
factor regarding the Court having jurisdiction is the place where the
offence was committed. Absence of a non-obs~~mte clause lined with Section H
...

630 SUPREME COURT REPORTS [2001] SUPP. 3 S.C.R.
A 4(2) of Prevention of Corruption Act does not lead to a conclusion that the
sub-section is subject to the provisions of Cr. P.C. A reading of Section 4(2)
Cr.P.C. (not Prevention of Corruption Act) gives the definite indication
that the legal position is the other way round. Section 4 Cr.P.C. is regarding
trial of offences under the Indian Penal Code and other laws. Sub-section
. (1) of it relates only to offences under the Indian Penal Code. Sub-section
B
(2) relates to "all offences under any other law". Thus, if Prevention of
Corruption Act has stipulated any place for trial of the offence under that
Act the provision of Cr.P.C. would stand displaced to that extent in regard
to the place of trial. [643-A; BJ

c 5. When the charge contains the offence or, offences punishable
under Prevention of ~orruption Act as well as the offence of conspiracy to I(

commit or attempt to commit or any abetment of any such offence, the
Court within whose local jurisdiction the main offence was committed
alone has jurisdiction. There is distinction between Section 181(4) of the
Code and Section 4(2) of Prevention of Corruption Act. When the former
D provision envisaged at least four Courts having jurisdiction to try a case
involving misappropriation the latter provision of Prevention of Corruption
Act has restricted it to one court i.e. the Court of the Special Judge for the
area "within which the offence was com~tted. No other Court is envisaged
for trial of that offence. [642-E; F]
E
6. In considering the question as to where the proceeding relatin.g to
the 36 cases involved in these appeals would have laid, had they been instituted
after the appointed day, there is no doubt that the meaning of the word
"exclusively" should be understo9d as "substantially all or for the greater
part or principally". The doctrine of Noscitur a Sociis (meaning of a word
F should be known from its accompanying or associating words) has much
relevance in understanding the imports of words in a statutory provision.
Therefore, implication of the words "proceeding relating exclusively to the
territory" have to be gauged from ~he surrounding context. Section 89 of the
Reorganisation ,Act says that proceedings pending prior to the appointed day
G before "a court (other than the High Court) tribunal, authority or officer"
shall stand transferred to the "corresponding court, tribunal, authority or
officer" of the Jharkhand State. [639-C; 638-F-H; 639-A]

, Bangalore Water Supply & Sewerage Board v. A Rajappa, [1978) 2 SCC
2131; Rohit Pulp and Paper Mills Ltd. v. CCE, [1990) 3 SCC 447; OswalAgro
H Mills Ltd. v. CCE, [1993) Supp. 3 SCC 716; K. Bhagirathi G. Shenoy & Ors.
C.B.I., A.H.D., PATNA v. BRAJ BHUSHAN PRASAD [THOMAS, J.] 631
v. K.P. Ballakuraya &'Am:, [1999] 4 SCC 135 and Lokmat Newspapers (P) A
Ltd. v. Shanka1prasad, [1999] 6 SCC 275, referred to.

Salvation Army v. Hoehn (Mo., 354, Mo.107, 188 SW 2nd 826; Anoka
County v. City of St. Paul, (1999) American Law Reports 1137; American
Management Association v. Assessors of Town of 406 NYS 583 and Klamath
B
Irrigation Distt. v. Employment Division, (534) p. 2d 1990, referred to.

Black's Law.Dictionary, Cmpus Juris Secundum Page 113 of Volume
33, referred to.

CRIMINAL APPELLATE JURISDICTION: Criminal Appeal Nos. 1009- C
1010 of 200L

From the Judgment and Order dated 4.5.2001 of the Patna High Court
in Crl. R. No. I and 2 of 2001.

WITH D

Crl. A. Nos. 1013-1014 of 2001.

Harish N. Salve, Solicitor General, Kapil Sibal, P.S. Mishra, Anoop
Choudhary, Sushi! Kumar, A.D.N. Rao, P. Parmeswaran, R.P. Singh, C.R.
E
Sinha, B.B. Singh, Irshad Ahmed, Ajit Kumar Sinha, Mrs. Sarla Chandra (NP),
R.K. Khanna, T..Harshvardhan, Vishnu Sharma, UpendraMishra, Rajesh Prasad
Singh, Ms. Ritu Jalali, Manu Shankar Mishra, Chandra Shekhar, Himanshu
Shekhar, Gaurav Agarwal, Joseph Pockkatt, Prashant Kumar, Ms. Niranjana
Singh, Alok Kumar, Tapesh Kr. Singh, R.P. Wadhwani, Shishir Pinaki, R.P.
Wadhwani, Amit Kumar, K.L. Taneja, Ravi Shankar Dwivedi, Rudreshwar F
Singh, Sanjay Jain, Ms. Kamini Jaiswal, Ms. Shomila Bakshi and Ms. Aishwarya
Rao for the appering parties.

The Judgment of the Court was delivered by

G
THOMAS, J. Leave granted.

The question is short but the range of consideration got widened much.
Answer to the question may be of advantage to some accused and disadvantage
to some other accused who are involved in a large number of criminal cases
which are compendiously styled with the sobriquet "Bihar Fodder Scam Cases". H
632 SUPREME COURT REPORTS {2001]SUPP. 3 S.C.R.
A These cases related to a series of orchestrated fraudulent acts by which a
staggeringly huge amount of public money was plundered or looted after
creating fake bills and other false documents for the said purpose; with the
active participation or connivance of several high ups in the administration of
the State. Though it is unnecessary now to mention the whopping sum so

B
plundered in each case, we are told that the aggregate of them exceeds Rs.720
~:
.
crores. The persons arraigned in the cases include men who held high offices,
besides the two former Chief Ministers of Bihar (Laloo Prasad Yadav and Dr.
J agannath Mishrar

The above indicated question winched to the fore on the midnight of 15th
C November, 2000, when the erstwhile State of Bihar got itself bifurcated into
two States by the Act of Parliament called The Bihar Reorganisation Act, 2000
(for short 'the Act'). One region of it became a new State called Jharkhand
while the remaining region became the present State of Bihar.

We are told that 64 cases have been registered relating to fodder scam.
D All the cases were directed to be investigated by the Central Bureau of
Investigation (CBI for short) pursuant to an order passed by the High Court of
Patna which was affirmed by this Court, with some modifications as per the
--
~.·

judgment in State of Bihar and Am: v. Ranchi Zila Samta Party and Am:,
(1996] 3 SCC 682. It is not disputed that 52 cases, out of the above, involve
withdrawal of huge sums of money from the government treasuries situated in
E the territories now falling within Jharkhand State. Out of those 52 _sf.tses,
·charge-sheets have been filed by the CBI before the appointed day i.e. 15.11.2000
in 36 cases before the Special Court situated at Patna. These appeals relate to
those 36 cases.

It was submitted on behalf of the CBI that those 36 cases stood transferred
F to the State of Jharkhand &oon after the midnight of 15.11.2000. That claim of
the CBI was resisted by some of the accused in those cases (including Lalu
Prasad Yadav and Dr. Jagannath Mishra) who contended that none of those
cases has been transferred. Thus the simple question is whether all or any of
those cases stood transferred to the courts situated in the State of Jharkhand on
G the midnight when the new State was born.

A Full Bench of three Judges of the Patna High Court considered the
question. By the impugned judgment the learned Judges of the Full Bench of
the High Court took the view that none of the 36 cases has been transferred
to Jharkhand State, though one of the learned Judges of the Full Bench held
H that 23 cases (out of the said 36 cases) should have gone over to Jharkhand
C.B.I., A.H.D., PATNA v. BRAJ BHUSHAN PRASAD [THOMAS, J.] 633
State. Thus the High Court discountenanced the claim of the CBI regarding the A
36 cases as per the impugned judgment.

It is admitted by both sides that the transfer of cases as a sequel to the
bifurcation of the erstwhile State of Bihar is the result of the operation of a
statutory provision incorporated in the Act. Section 89 of the said Act reads
thus: B

"89(1) Every proceeding pending immediately before the appointed
day before a court (other than the High Court). tribunal, authority or
officer in any area which on that day falls within the State of Bihar
shall, if it is a proceeding relating exclusively to the territory, which
as from that day is the territory of Jharkhand State, stand transferred
c
to the corresponding court, tribunal, authority or officer of that State.

(2) If any question arises as to whether any proceeding should
stand transferred under sub-section (1), it shall be referred to the High

-
. ..., Court at Patna and the decision of that High Court shall be final.
D
(3) In this section-

(a) 'proceeding' includes any suit, case or appeal; and

(b) 'corresponding court, tribunal, authority or officer' in the State
of Jharkhand means- E
(i) the court, tribunal, authority or officer in which, or before
whom, the proceeding would have laid if it had been instituted
after the appointed day; or

(ii) in case of doubt, such court, tribunal, authority or officer in F
that State, as may be determined after the appointed day by the
Government of that State or the Central Government, as the case
may be, or before the appointed day by the Government of the
existing State of Bihar to be the corresponding court, tribunal,
authority or officer." G

Before the appointed day (i.e. 15.11.2000) the erstwhile State of Bihar
comprised of all the territories now included in the State of Jharkhand as well
as the territories retained with the present State of Bihar. Jharkhand State is
comprised mainly of three regions- (1) North Chhotanagpur (2) South
Chhotanagpur (3) Santhal Pargana. H
634 SUPREME COURT REPORTS [2001] SUPP. 3 S.C.R.
A Government treasuries situated at Dhanbad, Ranchi and Chaibasa were
all.located within Jharkhand area. The city of Patna which was the capital of
the undivided State ?f Bihar falls within the region of the present State of Bihar.
Patna is now the capital of the present State of Bihar. The above informatiops
are useful for appreciating the rival contentions:
B It is admitted by both sides that in all the 36 cases (involved here) the
allegations pertained to the withdrawal of crores of rupees made from the
treasuries located in the territories of Jharkhand area. Long before the division
oflhe State of Bihar courts were established for the trial of offences under the
Prevention of Corruption Act, 1988 (for short the PC Act). As per the notification
c issued by the Government of Bihar on 19.4.1994, three courts of Special J~dges
were created; one at Dhanbad, the second at Ranchi and the third at Patna. The
court so created at Dhanbad was conferred with the jurisdiction over "all areas
under the division of North Chhotanagpur". The court so created at Ranchi was
given jurisdiction over "all areas under the division of South Chhotanagpur".
The court so created at Patna was given the jurisdiction over the remaining
D
regions.

Another court of Special Judge was established at Patna by notification
issued by the Government on 22.5.1996, as per which jurisdiction was given
over all Patna areas barring north and south of Chhotanagpur. This means, there
E were two courts at Patna having territorial jurisdiction over the same areas. Yet
another court of Special Judge was established at Patna itself by notification
issued on 5.6.96. This court was conferred with the territorial jurisdiction over
the "entire area of the State of Bihar".

The court of Special Judge created by notification dated 5:0.1996 could
F
thus exercise jurisdiction over the entire undivided State of Bihar at a time
when a court created earlier (as per notification of 19.4.1994) could have
exercised jurisdiction in the two regions which fell within Jharkhand area. In
other words, the last created court was invested with the concurrentjurisdictipn
vis-a-vis the jurisdiction exercisable by all other courts. This last notification
G probably would have created problems for the investigating agencies for
determining which of the courts to be chosen. for filing charge-sheets under
Section 4(2) of the PC Act, (where there are more Special Judges than one for
such area the offences shall be tried by the Special Judge as specified in this
behalf by the Central Government). But no such notification was issued by the
Central Government.
H
C.B.I., A.H.D., PATNA v. BRAJ BHUSHAN PRASAD [THOMAS, J.] 635
It was in the above situation that the Registrar of the High Court sent a A
letter to the District and Sessions Judge, Patna on 13.6.1996 directing him to
inform the Special Judge appointed as per the notification of 5.6.1996 "to deal
with all the cases pertaining to the Animal Husbandry Scam (same as Fodder
,..,.. . Scam) without any restrictions of the area". The legal validity of the said letter
of the Registrar was doubted by the Full Bench of the High Court in the
B
impugned judgment. That letter was assailed before us also on the premise that
only the Central Government has the power to specify, which out of the two
courts, can try any particular class of cases. This is so provided in Section 4(2)
of the PC Act.

Be that as it may, we would decide the present dispute de hors the C
validity or otherwise of the said letter.

It is not disputed before us that the courts of the Special Judges situated
within Jharkhand area have jurisdiction to try all the 36 cases now involved.
The High Court, as per the impugned judgment, considered the question whether
• :1' the court at Patna also has the jurisdiction to try them. Various acts alleged D
against different accused in such cases were highlighted and it was found that
the Special Court at Patna also had the jurisdiction to try the offence in view
of Section 179 and Section 180 of the Code of Criminal Procedure (for short
the Code'). The former section enables that the offence involved may be
enquired into or tried by a court within whose local jurisdiction such offence E
had been done or the consequence has ensued. Under the latter section offences
can be enquired into or tried by a court within whose local jurisdiction either
the main act was done or other acts related to the main act were done. Taking
cue from those provisions learned Judges of the High Court found that since
the jurisdiction of the court at Patna was not completely excluded (by virtue
of certain allied acts having been done at Patna) those proceedings cannot be F
held to be exclusively relating to the Jharkhand State, and therefore the cases
could remain in the present State of Bihar.

Shri Harish N. Salve, learned Solicitor General of India, who argued for
the CBI submitted that the entire approach made by the High Court in the
impugned judgment is fallacious because the question whether the courts at
G
Patna also had jurisdiction from the angle of Section 179 or Section 180 of the
Code, is outside the purview of Section 89 of the Act. Learned Solicitor
General submitted that the question has to be determined by reference to
Section 4(2) of the PC Act and not any provision of the Cr.P.C. According to
him, the test is this: If the same ads were committed after the appointed day H
636 SUPREME COURT REPORTS [2001] SUPP. 3 S.C.R.

A and cases have to be instituted, would they have been filed in the courts situated
within Jharkhand State. If the result of the above test is positive the operation
of the statutory provisions of the Act would only have resulted in the present
cases having been transferred to the State of Jharkhand on the appointed day,
according to Shri Harish N. Salve.

B
Shri Anoop Choudhary, learned senior counsel (appearing for one of the
respondents - accused in the criminal cases) while supporting the arguments of
the Solicitor General further submitted that the legal concept of 'cause of
action' was not envisaged in Section 89 of the Act and as such the High Court
fell into error by countenancing some of the acts having been done at Patna
C for the purpose of deciding that cause of action would have arisen in that place
also. Shri Sushi! Kumar, learned senior counsel appearing for another respondent
- accused supported the contentions of the learned Solicitor General.

Shri Kapil Sibal, learned senior counsel who argued for Latu Prasad
Yadav, contended, inter alia, that the only test is whether the proceedings
D
sought to be transferred rela:teo exclusively to the territory falling within the
Jharkhand State and on the facts it cannot be said, by any strete,:h of imagination,
that the cases related exclusively to that territory, in view of the acts narrated
in the charge-sheets submitted in R.C. 20A, R.C._30 A and R.C. 64A. He also
submitted that the principle enunciated in Sections 178 to 180 of the Code can
E be applied and the criminal misconduct alleged against Lalu Prasad Yadav
cannot then be said to relate exclusively to the Jharkhand State. He pointe<l out
that even according to the admitted position the acts done by the public servants
located in Patna as well as in Jharkhand area have resulted in the commission
of offences and consequently the t<!st of exclusivity envisaged in Section 89 of
F the Act cannot absolve the courts in Patna froIJ.?- jurisdiction to try the cases
involved in these appeals.

Shri P.S. Mishra, learned senior counsel appearing for Dr. Jagannath
Mishra, pointed out that the very fact that CBI laid the charge-sheets in the
Patna court was on account of the position that the courts at Patna had jurisdiction
G to try the case. He also submitted that the question of jurisdiction must be
considered in view of Sections i 79 and 180 of the Code and that the word
exclusively" in Section 89 of the Act cannot have a meaning other than "to the
exclusion of all others". Shri Ajit Kumar Sinha, learned counsel arguing for
some other respondents, adopted the same contentions which has been put
H forward by the two senior counsel mentioned above.
C.B.I., A.H.D., PATNA v. BRAJ BHUSHAN PRASAD [THOMAS, J.] 637
Section 89 of the Act deals with what should have happened on the A
appointed day i.e. 15 .11.2000 in respect of every proceeding "relating exclusively
to the territory" of Jharkhand State. Every such proceedings "shall stand
transferred to the corresponding court, tribunal, authority or officer" of Jharkhand
State. Here the words "relating exclusively to the territory of Jharkhand State"
are the decisive words. What is meant by the word "exclusively" in this context,
B
has now to be determined.

In Black's Law Dictionary, the word "exclusively" is shown to have
multiple nuances or shades of meanings such as "only or solely or substantially
all or for the greater part''. It also means "to the exclusion of all others".
Learned counsel who propounded the view in favour of the theory that the C
cases stood transferred to Jharkhand State submitted that among the above
different meanings the word should be understood only as "substantially aU or
for the greater part" because that is the most befitting to this context. Learned
~·
counsel on the other side submitted that the meaning of the said word cannot
be anything other than "to the exclusion of all others".
D
The lexicographer of Black's Law Dictionary has referred to the phrase
"exclusively used" and quoted from Salvation Army v. Hoehn (Mo., 354,

-
Mo.107, 188 SW 2d 826) as follows:

"The phrase in provision exempting from taxation properties exclusively
used ;vr religious worship, for schools or for purposes purely charitable, E
has reference to primary and inherent as over against a mere secondary
and incidental use."

Learned Solicitor General invited our attention to the observations made
by Devaney, J. of the Minnesota Supreme Court, in Anoka County v. City of
F
St. Paul, [1999) American Law Reports 1137. In that case learned Judges were
dealing with Article 9 Section I of the Minnesota Constitution which exempred
"public property used exclusively for any pub~ic purpose'; from taxation. It was ·
argued that since the city was in part, at least engaging in a private business,
the land upon which the water works were located were not used exclusively
for a public purpose and hence the entire water works should be taxed. The said G
argument was repelled by the following words:

"We do not agree. The word 'exclusively' as here used means
'substantially all' or 'for the greater part'. This word must be a given
a practical construction."
H

1
638 SUPREME COURT REPORTS [2001] SUPP. 3 S.C.R.
A We may point out that the aforesaid observation has been profitably used
by the editors· of Corpus Juris Secundum (vide Page lf3 of Volume 33). In
"Words and Phrases" an extract from American Management Association v. •
Assessors of Town of Madison, (406 NYS 583) .has been reproduced thus:

"Term 'exclusively', as used in provision of Real Property Tax Law
.B exempting from taxation real property owned by a corporation organized
or conducted exclusively for educational purposes and used exclusively
for such purpose, means primarily'."

Yet another extract from Klamath Irrigation Dist. v. Em1iloyment Division,
c (S34 P. 2d 190) has also been quoted like this:

"Word 'exclusive)y' within.statutory provision defining agricultural
labor exempt from payment of unemployment compensation taxes as
including all services performed in connection with operation or
maintenance of ditches, canals, reservoirs or waterways not owned or
D operated for profit used exclusively for supplying and storing water for
farming purposes, operates to relieve an irrigation district of its burden
of paying tax if none of its water is sold for a profit and if organization
is devoted primarily' or 'principally' or 'in large part' to delivering •
water for farm purposes, and if nonfarm purposes to which water is put
are not 'substantial'."
E
We pointed out the above different shades of meanings in order to
determine as to which among them has to be chosen for interpreting the said
word falling· in Section 89 of the Act. The doctrine of Noscitur a sociis
(meaning of a word should be known from its accompanying or associating
F words) has much relevance in understanding the imports of words in a statutory
provision. The said doctrine has been resorted to with advantage by this Court
in a number of cases vide Bangalore Water Supply & Sewerage Board v. A
Rajappa, [1978] 2 SCC 213, Rohit Pulp and Paper Mills Ltd. v. CCE, (1990]
3 SCC 447, Oswal Agro Mills Ltd. v. CCE, [1993] Supp. 3 SCC 716, K.
Bhagirathi G. Shenoy & Ors. v. K.P. Ballakuraya & Am:, [1999] 4 SCC 135,
G Lokmat Newspapers (P) Ltd. v. Shankarprasad, [1999] 6 SCC 275.

If so, we have to gauge the implication of the words "proceeding relating
exclusively to the territory" from the surrounding context. Section 89 of the Act
says that proceeding pending prior to the appointed day before "a court (other
H than the High Court), tribunal, authority or officer" shall stand transferred to
C.B.I., A.H.D., PATNA v. BRAJ BHUSHAN PRASAD [THOMAS, J.] 639
the "corresponding court, tribunal, authority or officer" of the Jharkhand State. A
A very useful index is provided in the section by defining the words
"corresponding court, tribunal, authority or officer in the State of Jharkhand"
as this:

"The court, tribunal, authority or officer in which or before whom the
proceeding would have laid if it had been instituted after the appointed B
day."

Look at the words "would have laid if it had been instituted after the
appointed day". In considering the question as to where the proceeding relating
to the 36 cases involved in these appeals would have laid, had they been
instituted after the appointed day, we have absolutely no doubt that the meaning c
of the word "exclusively" should be understood as "substantially all or for the
greater part or principally".

We cannot overlook the main object of Section 89 of the Act. It must not
be forgotten that transfer of criminal cases is not the only subject covered by
D
the section. The provision seeks to allocate the files or records relating to all
proceedings, after the bifurcation if they were to be instituted after the appointed
day. Any interpretation should be one which achieves that object and not that
which might create confusion or perplexity or even bewilderment to the officers
of the respective States. In other words, the interpretation should be made with
pragmatism, not pedantically or in a stilted manner. For the purpose of criminal E
cases, we should o.:-:r in mind the subject matter of the case to be transferred.
When so considering, we have to take into account further that all the 36 cases
are primarily for the offences under the PC Act and hence they are all triable
before the courts of Special Judges. Hence, the present question can be
determined by reference to the provisions of PC Act. p
.,.,
. The charge-sheets in all these cases were filed in the court of the Special
Judge at Patna when the State of Bihar remained undivided priorto 15.11.2000.
By the notification dated 5.6.1996 (supra) that court was conferred with the
territorial jurisdiction to try all cases falling under the PC Act. Added to it when

-I
the Registrar of the High Court of Patna directed (rightly or wrongly) the
District and Sessions Judge tc see that all cases relating to Animal Husbandry
G

Scam (same as Bihar Fodder Scam cases) should be filed in that court, the CBI
had no option in the matter except to file all those cases before the court at
Patna. There is no dispute that on 15.11.2000 the court at Patna was divested
of its jurisdiction over the territories falling within the Jharkhand State.
H

-.f
640 SUPREME COURT REPORTS (2001] SUPP. 3 S.C.R.
A Section 4 of the PC Act relates to the jurisdiction of the court for trial
of offences under that Act. The first sub-section of Section 4 declares that
notwithstanding anything contained in the Code or in any other law, the
offences punishable under the PC Act can be tried "only" by the Special Judge,
appointed under Section 3(1) of the PC Act. Now sub-section (2) of Section
4 is the important provision and it is extracted below:
B
"Every offence specified in sub-section (1) of section 3 shall be tried
by the special Judge for the area within which it was committed, or,
as the case may be, by the special Judge appointed for the case, or,
where there are more special Judges than one for such area, by such
-
c one of them as may be specified m this behalf by the Central
Government."

Thus, the only court which has jurisdiction to try the offences under the
PC Act is the court of Special Judge appointed for the areas within which such
offences were committed. When such an offence is being tried sub-section (3)
D enables the same Special Judge to try any other offence which could as well _,..
be charged against that accused in the same trial. So the pivot of the matter is -
to determine the area within which the offence was committed.

For that purpose it is useful to look at Section 3(1) of the PC Act. It
empowers the Government to appoint Special Judge to try two categories of
E offences. The first is, "any offence punishable under this· A~!" and the second
is, "any conspiracy to commit or any attempt to commit or any abetment of any
of the offences specified" in the first category. So when a court has jurisdiction
to try the offence punishable under the PC Act on the basis of the place where
such offence was committed, the allied offences such as conspiracy, attempt or
F abetment to commit that offence are only to be linked with the main offence.
When the main offence is committed and is required to be tried it is rather
inconceivable that jurisdiction of the court will be determined on the basis of
where the conspiracy or attempt or abetment of such main offence was
committed. It is only when the main offence was not committed, but only the
conspiracy to commit that offence or the attempt or the abetment of it alone
G was committed, then the question would arise whether the court of the Special ·
Judge within whose area such conspiracy etc. was committed could try the
case. For our purpose it is unnecessary to consider that aspect because the
charges proceed on the assumption that. the main offence was committed.

H What is the main offence in the charges involved in all these 36 cases?
C.B.l., A.H.D., PATNA v. BRAJ BHUSHAN PRASAD [THOMAS, J.] 641

It is undisputed that the main offence is under Section 13(1)(c) and also Section A
13(1)(d) of the PC Act. The first among them is described thus:

"A public servant is said to commit the offence of criminal misconduct,-

(c) if he dishonestly or fraudulently misappropriates or otherwise
converts for his own use any property entrusted to him or under B
his control as a public servant or allows any other person to do
-· so."

The next offence is described like. this:

"A public servant is said to commit the offence of criminal misconduct,- C

(d) if he,-

(i) by corrupt or illegal means, obtains for himself or for any other
person any valuable thing or pecuniary advantage; or
D
(ii) by abusing his position as a public servant, obtains for himself or
for any other person any valuable thing or pecuniary advantage; or
.. (iii) while holding office as a public servant, obtains for any person any
valuable thing or pecuniary advantage without any public interest."
E
We have no doubt in our mind that the hub of the act envisaged in first
of those two offences is "dishonestly or fraudulently misappropriates". Similarly
the hinge of the act envisaged in the second section is "obtains" for himself
or for any other person, any valuable thing or pecuniary advantage by corrupt
or illegal means. F
The above acts were completed in the present cases when the money has
gone out of the public treasuries and reached the hands of any one of the
persons involved. Hence, so far as the offences under Section 13(1)(c) and
Section 13(1)(d) are concerned the place where the offences were committed
could easily be identified as the place where the treasury concerned was G
situated. It is an undisputed fact that in all these cases the treasuries were
situated within the territories of Jharkhand State.

Thus, when it is certain where exactly the offence under Section 13 of
the PC Act was committed it is an unnecessary exercise to ponder over the
H
642 SUPREME COURT REPORTS [2001] SUPP. 3 S.C.R.
A other areas wherein certain allied activities, such as conspiracy or preparation,
or even the prefatory or incidental acts were done, including the consequences
ensued.

In this context it is useful to refer to Section 181 of the Code which falls
within Chapter XIII, comprising of•provisions regarding jurisdiction of the
B criminal courts in inquiries and trials. Section 181 pertains to "place of trial in
case of certain·offences". Sub-section (4) thereof deals with the jurisdiction of
the courts if the offence committed is either criminal misappropriation or
criminal breach of trust. At least four different courts have been envisaged by
the sub-section having jurisdiction for trial of the said offence and any one of
c which can be chosen. They are: (1) the court within whose local jurisdiction
the offence was committed; (2) the court within whose local jurisdiction any
part of the property which is th~ .;ubject of the offence was received; (3) the
court within whose local jurisdiction any part of the property which is the

-
subject of the offence was retained; and (4) the court within whose local
jurisdiction any part of the property which is subject of the offence was
D required to be returned or accounted for, by the accused.

Now, observe the distinction between Section 181 (4) of the Code and
Section 4(2) of the PC Act. When the former provision envisaged at least four
courts having jurisdiction to try a case involving misappropriation the latter
provision of the PC Act has restricted it to one court i.e. the Court of the Special
E
Judge for the area within which the offence was committed". No other court
is envisaged for trial of that offence. We pointed out above that when the charge
contains the offence or offences 'punishable under the PC Act as well as the
offence of conspiracy to commit or attempt to commit or any abetment of any
such offence, the court within whose local jurisdiction the main offence was
F committed alone has jurisdiction.

Shri Kapil Sibal, learned senior counsel contended that Section 4(2) of '
the PC Act does not override the provisions of the Code regarding jurisdiction .
because among the four sub-sections included in Section 4 of the said Act, only
first and the last sub-sections are tagged. with the non obstante words
G "notwithstanding anything contained in the Code of Criminal Procedure". In
his submission the fact that sub-section (2) is freed from the non obstante words
would indicate that the provisions of the Code can as well be read with that
sub-section. In that context learned Senior Counsel invited our attention to
Section· 178 to 180 of the Code, showing that different courts having domain
H over different local areas have concurrent jurisdiction to inquire into or try the
C.B.I., A.H.D., PATNA v. BRAJ BHUSHAN PRASAD [THOMAS, J.] 643

offences and hence the trial is permissible in any one of them. A
Absence of a non obstante clause linked with Section 4(2) of the PC Act
does not lead to a conclusion that the sub-section is subject to the provisions
of the Code. A reading of Section 4(2) of the Code (not PC Act) gives the
definite indication that the legal position is the other way round. Section 4 of
the Code is regarding trial of offences under the Indian Penal Code and other B
laws. Sub-section (1) of it relates only to offences under the Indian Penal Code.
Sub-section (2) reJates to "all offences under any other law". It is useful to read
the said sub-section at this stage:

"All offences under any other law shall be investigated, inquired into,
tried, and otherwise clealt with according to the same provisions, but
c
subject ~o any enactment for the time being in force regulating the
manner or place of investigating, inquiring into, trying or otherwise
dealing with such offences."

Thus, if the PC Act has stipulated any place for trial of the offence under D
that Act the provisions of the Code would stand displaced to that extent in
regard to the place of trial. We have, therefore, no doubt that when the offence
is under Section 13.(l)(c) or Section 13(1)(d) of the PC Act the sole determinative
factor regarding the court having jurisdiction is the place where the offence was
committed.
E
A decision of the Kerala High Court, among the various decisions cited
before us, has been relied upon by both sides highlighting the observations
therein. In Banwarilal Jhunjhunwalla and Ors. v. Union of India, AIR (1959)
Kerala 311 P.T. Raman Nayar, J. (as the learned Chief Justice then was) had
to consider the question of jurisdiction of a court regarding the offence under
F
Section 5(2) of the PC Act of 1947 in junction with a few other penal code
offences. The facts in that case were that two accused entered into contracts
at New Delhi for the supply of timber for the Central Railways Administration.
But the consignees of the timber were at Bombay, Hyderabad and Jhansi. For
the supply of timber, bills were passed and payments were made at New Delhi
as per cheques which were encashed at Bombay. But the supply of low quality G
· of timber was made within the State of Kerala. Certificate for good quality of
such timber was issued at different places situated in the State of Kerala by one
Thomson, Inspecting' Officer of the Railway Board, Bombay. The said officer,
along with other accused were prosecuted before the court of a Special Judge
at Kerala for the above-mentioned offences. The main accused - Thomson - H
644 SUPREME COURT REPORTS [2001] SUPP. 3 S.C.R.
A raised the question regarding jurisdiction of that court situated at Kerala.
Learned Judge held that "taking the first offence under Section 5(2) of the PC
Act, alleged to have been committed by Thomson, there can be little doubt that
it was conunitted within the State of Kerala where he passed inferior jungle
wood as timber of the contract quality and issued false certificates to that
effect." ~
B
It was argued before the learned Judge that the conspiracy took place
outside the State of Kerala and hence Section 180 of the Code would apply.
Repelling the said contention learned Judge said thus:
-
"The application of S.180, Criminal Procedure Code is even more
c
certain. A conspiracy like an abetment is not an act which is inherently
an offence. It is its relation to the other act which is its object that makes
it an offence. Taking this particular case, it is by reason of the relation
of the conspiracy to the act contemplated, namely, the commission of
an offence under S. 5(2) of the Prevention of Corruption Act, that
D makes the conspiracy an offence; and that is so whether that other act
is done or not. For one act to be related to another it is enough if that
other act is in contemplation, it is not necessary that it should be
actually committed."

The said decision relied on by both sides would thus support the
E
proposition that the place of jurisdiction would be determinative by reference
to the place where the main offence was committed. The fact that other allied
acts were committed at different places would be hardly sufficient to change
the venue of the trial to such other places.

F Shri Kap ii Sibal, learned senior counsel cited the decisions in Dhaneshwar
Narain Saxena v. The Delhi Administration, [1962] 3 SCR 259, M. Narayanan
Nambiar v. State of Kera/a, (1963] ·suppl. 2 SCR 724, The State of Gujarat
v. Manshankar Prabhashankar Dwivedi, [1972] 2 SCC 392, Major S.K. Kale
v. State of Maharashtra, [1977] 2 SCC 394 and Union of India v. Ml!i· J.C. Lala
etc. etc., (1973] 2 S€C 72. In all these decisions the consideration was focussed
G on the different ingredients needed for constituting the offence. But in none of
those cases a question dealing with the situation Iike the present one had to be
considered. In K. Bhaskaran v. Sankaran Vaidhyan Balan and Anr., [1999] 7
sec 510 (cited by the learned senior counsel) the question considered was
whether a particular court has jurisdiction to try the offence under Section 138
H of the Negotiable Instruments Act. That decision also is not of any help in
C.B.I., A.H.D., PATNA v. BRAJ BHUSHAN PRASAD [THOMAS, J.] 645
reaching an answer to the crucial question involved in these appeals. A
Shri P.S. Mishra, learned senior counsel cited the decisions in
Purushottamdas Dalmia v. The State of West Bengal, [1962] 2 SCR 101 and
L.N. Mukherjee v. The State of Madras, [1962] 2 SCR 116. In the former it was
held that the court which has jurisdiction to try the offence of conspiracy could
also deal with the overt acts done pursuant to the conspiracy. The latter decision B
is concerned with the converse position. In the light of the discussions made
above it is immaterial whether such other court would also have jurisdiction
in the circumstances of those cases.

Shri ·P.S. Mishra, learned senior counsel invited our attention to the
decision of this Court in Banwari Lal Jhunjhunwala and Ors. v. Union of India C
and Am:, [1963] Supple. 2 SCR 338. We may point out that this is the same
case in which the Kerala High Court had decided the question of jurisdiction
in the decisions cited supra. When an offshoot of the said case reached this
Court the question focussed here was whether different bills created for the
purpose of cheating would have been treated as relating to distinct offences D
warranting separate charges to be framed. We do not find any aid from the said
decision for the question involved in the present cases.

We are now coming to the final conclusion. In our considered view all
the 36 cases involved in these appeals stood transferred to the corresponding
courts situated within the territories of the Jharkhand State on the appointed day E
(i.e. 15.11.2000) by the operation of Section 89 of the Act. We therefore, direct
the Registrar of the High Court of Patna to instruct the officers concerned for
despatching the records of all these 36 cases, to the corresponding courts at
Jharkhand State forthwith. We also direct the Registrar of the High Court of
Jharkhand to do whatever is needed for reaching such records in the appropriate
courts.
F

To avoid the confusion and repetition of the exercise, we make it clear
that the evidence already recorded in any of the 36 cases will be treated as
evidence recorded by the proper court having jurisdiction. In other words, the
. Special Judge need not call the witnesses already examined over again for
G
repetition of what has already come on record.

The impugned judgments are set aside and the appeals are disposed of
accordingly.

K.K.T. Appeal disposed of.