2023 (7) TMI 1436 - SC - Indian Laws

Criminal Conspiracy - Cheating fraud - allured by the principal accused (who happens to be the sister of the petitioner) to part with Rs. 45 lakh in all (paid partly in cash and partly by RTGS) for the purpose of establishment of a pharma company which would be engaged in the manufacture of Ayurvedic medicines - HELD THAT - It is not one of those rare cases where the uncontroverted allegations appearing from the materials on record notwithstanding, it can successfully be contended that even no prima facie opinion can be formed pointing to commission of any offence by the petitioner. It is trite that the conspiracy to commit an offence is by itself distinct from the offence to do which the conspiracy is entered into and that such an offence, if actually committed, would be the subject-matter of a separate charge. The allegations that the petitioner was found counting the cash received by the principal accused from the second respondent in the presence of a listed witness and that she conspired with her sister, the principal accused, to cheat and defraud the second respondent, persuade to record that involvement of the petitioner, howsoever limited, cannot be ruled out at this stage and, therefore, the trial ought to be permitted to proceed and she obliged to stand trial. The impugned judgment and order of the High Court dismissing the petition under section 482, Cr.P.C. - Appeal dismissed.

Summary

Issues Involved:
1. Validity of charges against the petitioner under sections 406, 420, 506, 120B, and 180 of the IPC.
2. High Court's refusal to quash the proceedings.
3. Role and involvement of the petitioner in the alleged conspiracy and fraud.
4. Legitimacy of the confessional statement and its implications under section 180 IPC.
5. Judicial principles guiding the quashing of criminal proceedings.
6. Conduct of the Deputy Superintendent of Police in swearing an affidavit.

Issue-wise Detailed Analysis:

1. Validity of Charges Against the Petitioner:
The FIR registered under sections 406, 420, 506, and 120B IPC included the petitioner among the accused. The investigation culminated in a police report under sections 420, 406, 506, 379, 120B, and 180 IPC against the petitioner. However, the charge-sheet did not reveal any specific role of the petitioner in the offense under section 379 IPC. The allegations primarily stemmed from the second respondent being allured to part with Rs. 45 lakh for establishing a pharma company. The petitioner was alleged to be part of a conspiracy to cheat and defraud the second respondent. The charge-sheet lacked clarity on the petitioner's role but referred to her as a conspirator.

2. High Court's Refusal to Quash the Proceedings:
The petitioner challenged the charge-sheet and subsequent orders under section 482 Cr. PC. The High Court, relying on judicial precedents, found sufficient material against the petitioner and declined to quash the proceedings. The Supreme Court upheld the High Court's decision, emphasizing that it is not the stage to delve deep into the records or ascertain the trial's outcome. The principles guiding the quashing of charges were reiterated, emphasizing that the power should be exercised sparingly and in the rarest of rare cases.

3. Role and Involvement of the Petitioner:
The second respondent alleged that the petitioner was introduced by the principal accused and was part of the gang that defrauded her. The charge-sheet mentioned that the petitioner, after securing anticipatory bail, made a confessional statement but later refused to sign it, leading to charges under section 180 IPC. The petitioner's involvement was further supported by the second respondent's statement under section 161 Cr. PC, alleging the petitioner counted the money received by the principal accused. The Supreme Court held that the petitioner's involvement, even if limited, could not be ruled out at this stage, and the trial should proceed.

4. Legitimacy of the Confessional Statement:
The DSP's affidavit claimed that the petitioner admitted to receiving money from the complainant and handed it over to the principal accused. The Supreme Court noted that under section 162 Cr. PC, no statement made to a police officer during an investigation is required to be signed. Section 180 IPC applies only if a statement is refused to be signed, which a public servant is legally competent to require. The Court found the DSP's affidavit irresponsible and warned him to be cautious in the future.

5. Judicial Principles Guiding Quashing of Criminal Proceedings:
The Supreme Court referred to the principles laid down in Amit Kapoor vs. Ramesh Chandra, emphasizing that the power to quash criminal proceedings should be exercised sparingly. The Court should not unduly interfere, and no meticulous examination of evidence is needed at the stage of framing charges. The allegations must be patently absurd and inherently improbable for the Court to interfere. The Court must balance the freedom of the accused and the right of the complainant to prosecute. The process should not be used for an oblique purpose, and the Court should not embark on a critical analysis of evidence at this stage.

6. Conduct of the Deputy Superintendent of Police:
The Supreme Court expressed its concern over the DSP's affidavit, which inaccurately claimed the petitioner's confessional statement required a signature. The Court emphasized the importance of police officers being aware of legal provisions to avoid adversely affecting the rights of the accused. The Registry was directed to forward a copy of the judgment to the Director General of Police, Haryana, to ensure police officers are educated on legal provisions.

Conclusion:
The Supreme Court upheld the High Court's decision, allowing the trial to proceed. The petitioner's involvement in the alleged conspiracy and fraud could not be ruled out at this stage. The Court emphasized the principles guiding the quashing of criminal proceedings and highlighted the need for police officers to be aware of legal provisions to prevent adverse impacts on criminal proceedings.