2003 (11) TMI 584 - SC - Indian Laws

Whether the High Court was not justified in quashing the investigation and proceedings in the connected case registered by the Special Police Establishment, Lokayukt, Gwalior? Whether the Court should not act on annexures to the petitions under Section 482 of the Code, which cannot be termed as evidence without being tested and proved?

Summary

Issues Involved:
1. Legality of quashing the investigation and proceedings under the Prevention of Corruption Act, 1988.
2. Parameters for exercising jurisdiction under Section 482 of the Code of Criminal Procedure, 1973.
3. Evaluation of evidence and materials at the investigation stage.

Detailed Analysis:

1. Legality of Quashing the Investigation and Proceedings:
The State of Madhya Pradesh challenged the High Court's decision to quash the investigation and proceedings under the Prevention of Corruption Act, 1988, in a case involving the alleged acquisition of disproportionate assets by a public servant. The High Court had concluded that the income and properties of the accused and his relatives were satisfactorily explained through income-tax returns and other documents, and thus, there was no basis for the allegations. The High Court also emphasized the necessity of providing an opportunity to the accused to explain the pecuniary resources or properties disproportionate to his known sources of income, as mandated by Section 13(1)(e) of the Act.

2. Parameters for Exercising Jurisdiction under Section 482 of the Code of Criminal Procedure, 1973:
The Supreme Court highlighted that the power under Section 482 of the Code is an exception and not the rule, intended to prevent abuse of the court's process or to secure the ends of justice. The Court reiterated that this power should be exercised sparingly and with caution. It cited the circumstances under which inherent jurisdiction may be exercised, such as to give effect to an order under the Code, to prevent abuse of the court's process, or to otherwise secure the ends of justice. The Court referred to precedents, including R.P. Kapur v. State of Punjab and State of Haryana v. Bhajan Lal, which outline categories where quashing of proceedings might be justified.

3. Evaluation of Evidence and Materials at the Investigation Stage:
The Supreme Court criticized the High Court for acting as if it were conducting a trial by evaluating the evidence and materials at the investigation stage. It emphasized that at the stage of considering an application for quashing the investigation, the Court should not sift through evidence or make conclusive findings. The Court noted that the investigation was incomplete, and it was inappropriate for the High Court to assess the acceptability of the materials, which is a matter for trial. The Court underscored that the High Court should refrain from making a prima facie decision when the facts are incomplete and hazy, and the evidence has not been fully collected or presented.

Conclusion:
The Supreme Court set aside the High Court's judgment, allowing the State to proceed with the investigation and further proceedings. The Court clarified that its interference should not be construed as an opinion on the merits of the case. The appeal was allowed, and the investigation was permitted to continue, emphasizing the limited scope of jurisdiction under Section 482 of the Code and the necessity of a complete investigation before making any determinations.