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Supreme Court of India

STATE OF BIHAR AND ANR.versusMD. KHALIQUE AND ANR.

Citation
2001 INSC 584
Decided
28 November 2001
Disposal
Appeal(s) allowed

Holding

A High Court may not quash a criminal investigation where the FIR contains specific allegations that establish a prima facie cognizable offence; such power must be exercised only in the rarest of rare cases.

Summary

The State of Bihar filed an FIR alleging that six government revenue officers colluded with two private individuals to forge assessment orders under the Bihar Land Reforms Act, 1955, thereby misappropriating state funds. The FIR, registered under IPC sections 419, 420, 467 and 120B, named eight accused. The Patna High Court quashed the entire police investigation, holding that the petitioners had not made any specific allegation. On appeal, the Supreme Court examined whether the FIR disclosed a prima facie cognizable offence and whether the High Court could exercise its power under Article 226/Section 482 CrPC to quash the investigation. Applying the Bhajan Lal test, the Court found that the FIR contained specific allegations of forgery, fraud and conspiracy, establishing a prima facie case and a cognizable offence. Consequently, the Court held that the High Court’s interference was unwarranted and set aside its order, directing that the investigation continue and granting bail to respondent No. 2 on bond.

Issues considered

  • Whether the FIR discloses a prima facie cognizable offence warranting police investigation.
  • Whether the High Court is justified in exercising its power under Article 226/Section 482 CrPC to quash a criminal investigation in such circumstances.
  • What is the proper scope of the High Court's power to interfere with investigations under the Bhajan Lal test?

Legislation cited

Subjects

Section 482 CrPCquashing investigationprima facie casecognizable offenceBhajan Lal testhigh court jurisdictioncriminal procedureforgeryconspiracyBihar Land Reforms Act

Judgment

                          STATE OF BIHAR AND ANR.                                   A
                                         v.
                          MD. KHALIQUE AND ANR.

                              NOVEMBER 28, 2001
'
                      [K.T. THOMAS AND S.N. PHUKAN, JJ.]                            B

         Criminal Law :

           Code of Criminal Procedure, 1973-Sections 482, 156 and 157-lnves-
    tigation by police-Interference by High Court-Held, when prima fade case        C
    is made out against the accused and cognizable of.fence disclosed, High Court
    not justified in quashing the investigation-Power to quash to be exercised in
    rarest o.f rare cases-Penal Code, 1860 Sections 1208, 419, 420 and 467.

          Jamindari of ex-intermediary of one 'R' vested in the State Govern·       D
    ment. Officers of the Government in collusion with the respondent carried
    out official assessment of the asset without proper jurisdiction and forged
    some documents while preparing the annual income of the ex-intermedi·
    ary. On these allegations FIR was lodged against the accused persons. Writ
    petition was filed and the High Court quashed the entire investigation
                                                                                    E
    holding that there were no specific allegation. Hence the present appeal.

          Allowing the appeal, the Court

                                                                                    F
          HELD : In view of the specific allegations of forgery of the assess·
    ment order of compensation payable under the Bihar Land Reforms Act,
    1955, fraud played while verifying the interest of the Jamindari and con·
    spiracy against the respondents made in the FIR, a prima .facie case was
    made out against the accused persons and a cognizable offence was dis·          G
    closed. Thus the High Court ought not to have interfered with the investi·
    gation and should have permitted the police to complete it. [357-D; F; H]


          State of Haryana and Ors. v. Bhajan Lal and Ors., [1992] Supp. 1 SCC
    335, relied on.                                                                 H
                                         355
    356                  SUPREME COURT REPORTS                (2001] SUPP. 5 S.C.R.
A         CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No. 1217
    of 2001.

         From the Judgment and Order dated 9.12.99 of the Patna High Court in
    C.R.W.J.C. No. 243 of 1996.

B          B.S. Singh for the Appellants.

           N.P. Midha for Bharat Sangal, Adv. for the Respondents.

          The Judgment of the Court was delivered by

          PHUKAN, J. Lave granted.
c          In this appeal by special leave the appellants have assailed the judgment
    dated December 09, 1999 of the High Court of Judicature at Patna passed in
    CRWJC No. 243 of 1996. By the impugned judgment, the High Court quashed
    the investigation of a case, "'.hich was registered under Sections 419, 467, 420
    and Section 120B of the Indian Penal Code. The first information report was
D   filed against eight accused out of which six were Revenue Officers and two
    were private persons. Two private persons filed a writ petition before the High
    Court and the High Court by the impugned order quashed the entire investi-
    gation ignoring the fact that there were six government officials.

          Briefly stated the facis are as follows :
E
           'fhe Jarnindari of ex-intermediary viz. Raghu Mahto vested in the State
    Government in terms of the·provisions of the Bihar Land Reforms Act, 1955.
    It was alleged that the Government had to submit official assessment of the
    asset, which was made without proper jurisdiction by the six officers of the
    Government in collusion with the respondents with the malafide intention of
F   their vested interest. Documents were forged while preparing the annual in-
    come of the ex-intermediary. On these allegations, the FIR was lodged in the
    police station. The High Court quashed the investigation inter alia holding that
    there was no specific allegation and overt act alleged against the writ petition-
    ers except that in collusion with the officials of the department the excess
G   amount was withdrawn. According to the High Cou1t no excess amount was
    paid in view of the earlier judgment of the High Court in a writ petition.

           Law is well settled regarding interference by the High Court with an
    investigation of a case. In the leading case of this Court in State of Haryana
    and Ors. v. Bhaian Lal and Ors., [1992] Supp. 1 SCC 335, this Court by way
H   of illustration stated seven categories of cases where the extraordinary power
                   STATE v. MD. KHALIQUE [PHUKAN, J.]                      357
under Article 226 or inherent power under Section 482 Cr. P.C. can be exer-        A
cised by the High Court either to prevent abuse of process of any court or
otherwise to secure the ends of justice. Out of seven categories two categories
are relevant for our present purpose viz.:

         "(l) Where the allegations made in the first information report or the
         complaint, even if they arc taken at their face value and accepted in     B
         their entirety do not prima .facie constitute any offence or make out a
         case against the accused.

         (2) Where the allegations in the first information report and other
         materials, if any, accompanying the FIR do not disclose a cognizable
         offence, justifying an investigation by police officers under Section
                                                                                   c
         156(1) of the Code except under an order of a Magistrate within the
         purview of Section 155(2) of the Code."

       In the FIR there are categorical allegations of forgery of the assessment
order of compensation payable under the Bihar Land Reforms Act, 1955 and           D
also allegations of fraud played while verifying the interest of the Jamindari
in paragraph (d) there is a specific allegation of conspiracy against two writ
petitioners, which is quoted below :

         "It also appears that the entire proceedings of the conspiracy of said
         misappropriation has been done by Ex-landlord late Raghu Mahto's          E
         son Satya Narayan Mahto. Power of Attorney holder Shri Mohd.
         Khalif in connivance with the concerned officer. In this way interme-
         diary was helped in illegal manner by which State money was embez-
         zled."

      In view of the specific allegations made in the FIR it cannot be said that   F
no prima .facie case was made out against the accused persons including the
writ petitioners and that it did not disclose a cognizable offence.

      In Bh~ian Lal's case (supra) this Court has also held that the power of
quashing a criminal proceeding should be exercised sparingly and with the          G
circumspection and that too in the rarest of the rare cases. The present case is
not rarest of the rare case.

       In view of the settled legal position and as offences have been disclosed
in the FIR, the High Court ought not to have interfered with the investigation
and should have permitted police to complete it. We, accordingly, hold that        H
    358                   SUPREME COURT REPORTS                 [2001] SUPP. 5 S.C.R.
A   the High Court has committed a grave error in quashing the entire proceeding
    and ought not to have thwart the prosecution.

           Only respondent No. 2, namely, Satya Narain Mahto has resisted the
    appeal. Learned counsel has pleaded that respondent No. 2 may be granted pre-
    arrest bail and has assured that he would co-operate with. the investigation. We
B   accept the submission of the learned counsel. We therefore, direct that, if
    arrested, respondent No. 2 shall be released on furnishing a bond with adequate
    sureties in the like amount to the S1tisfaction of the arresting authority. He shall
    make himself available for interrogation, whenever necessary.

          Appeal is accordingly allowed by setting aside the impugned judgment
c   of the High Court.

    N.J.                                                             Appeal allowed.


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