2016 (7) TMI 1514 - SC - Indian Laws

Misappropriation of funds - attachment of properties - offences Under Sections 409, 468 read with Section 471 of the Indian Penal Code - HELD THAT - There has been a gross mis-carriage of justice at several steps. In the first place, the finding of the trial court that Ramachandraiah was alone responsible for the offences is completely vitiated as null and void since Ramachandraiah had admittedly died on the date this finding was rendered. It is too well settled that a prosecution cannot continue against a dead person. A fortiori a criminal court cannot continue proceedings against a dead person and find him guilty. Such proceedings and the findings are contrary to the very foundation of criminal jurisprudence. In such a case the accused does not exist and cannot be convicted. The learned District Judge committed a gross error of law in acting upon such a finding and treating Ramachandraiah as guilty of such offences while making the order of attachment and while confirming the said order of attachment of properties. There is no legal provision which enables continuance of prosecution upon death of the accused. We must record that the proceedings and the decisions of the courts below are disturbing, to say the least. In the first place, though the accused had died, the trial court proceeded with the trial and recorded a conviction two years after his death. Then, this null and void conviction was used as a basis for making an attachment of his properties before the Sessions Court. Astonishingly, all applications succeeded, the attachment was made absolute and over and above all, the High Court upheld the attachment. Appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
1. Legality of attachment proceedings under the Criminal Law Amendment Ordinance, 1944, against the property of a deceased individual.
2. Validity of trial court's findings and subsequent orders based on proceedings against a deceased person.
3. Presumption of innocence in the context of abated prosecution due to the death of the accused.

Issue-wise Detailed Analysis:

1. Legality of attachment proceedings under the Criminal Law Amendment Ordinance, 1944, against the property of a deceased individual:

The appellants, legal representatives of the deceased Ramachandraiah, challenged the attachment of property under the Criminal Law Amendment Ordinance, 1944. The appellants argued that the scheme of the Ordinance does not permit attachment of property without a valid conviction, especially when the accused has died during the trial. The District Judge had passed an order of interim attachment based on the belief that Ramachandraiah committed the scheduled offences and procured money or property from such offences. The Supreme Court examined Clause 3 of the Ordinance, which authorizes the State Government to apply for attachment even without a conviction but requires the existence of the person against whom the application is made. The Court found that Clause 3 excludes proceedings against a deceased person, making the attachment proceedings initiated against Ramachandraiah, who was dead, legally untenable.

2. Validity of trial court's findings and subsequent orders based on proceedings against a deceased person:

The trial court had found Ramachandraiah responsible for the offences based on oral and documentary evidence, even though he had died during the trial. The Supreme Court held that the prosecution cannot continue against a dead person, and a criminal court cannot find a deceased person guilty. The findings of the trial court were declared null and void, and the District Judge's reliance on such findings to confirm the attachment order was a gross error of law. The Court emphasized that the proceedings and findings against Ramachandraiah were contrary to the foundation of criminal jurisprudence, which does not permit prosecution or conviction of a deceased individual.

3. Presumption of innocence in the context of abated prosecution due to the death of the accused:

The Supreme Court highlighted the presumption of innocence until proven guilty, which remains intact even after the death of the accused. The Court noted that Clause 13 of the Ordinance mandates the withdrawal of attachment orders upon acquittal or if cognizance of the offence has not been taken. The Court reasoned that the abatement of prosecution due to the death of the accused should be treated similarly to an acquittal, necessitating the withdrawal of attachment orders. The Court reiterated that the presumption of innocence does not vanish upon the death of the accused and criticized the lower courts for continuing proceedings and confirming attachment based on a null and void conviction.

Conclusion:

The Supreme Court found that the attachment proceedings initiated against the deceased Ramachandraiah were illegal and set aside the orders of the District Judge and the High Court. The Court emphasized that the prosecution cannot continue against a deceased person, and any findings or orders based on such proceedings are null and void. The appeal succeeded, and the impugned judgment was declared unsustainable.