George Bhaktan v. Rabindra Lele & Ors.

A ## (2014] 11 S.C.R. 520 ## GEORGE BHAKTAN _v._ RABINDRA LELE & ORS. (Criminal Appeal No. 2165 of 2014) B ## SEPTEMBER 24, 2014 ## [DIPAK MISRA AND VIKRAMAJIT SEN, JJ.] - _Code of Criminal Procedure, 1973 ss.195(1)(b)(ii) and_ - - - _482 Prohibition in s. 195(1)(b)(ii) Applicability of_ c _Appellant filed complaint u/s.200 CrPC against respondents alleging commission of offences u/ss. 425, 468 and 471 /PC_ - - _Magistrate took cognizance Order of cognizance challenged on ground that the alleged forged document was produced in a suit brought by the respondents, therefore,_ D _prohibition contained in s. 195(1)(b)(ii) was attracted_ - _High Court quashed order of cognizance passed by the Magistrate_ - - _Propriety Held: High Court did not advert to any aspect pertaining to allegations in the complaint or the material brought on record to arrive at a conclusion whether a prima_ - E _facie case was made out or not It singularly addressed the controversy on the legal backdrop that when a document is produced in a civil proceeding, it attracts the bar ul s.195(1)(b)(ii) CrPC and, therefore, the complaint is not_ - _tenable in law On facts, there was no a/legation that the_ F _[document was forged when the matter was sflbjudice before ] the Civil Court_ - _High Court erred in relying on the principle stated in_ Gopalakrishna Menon _case_ - _Dicta of the Constitution Bench in_ Iqbal Singh Marwah _case squarely_ - _applicable Order passed by the High Court accordingly set_ G _[aside ]_[-] _Matter remanded to High Court for fresh consideration._ Allowing the appeal, the Court H HELD: The High Court has not adverted to any aspect 520 GEORGE BHAKTAN _v._ RABINDRA LELE 521 • pertaining to the allegations in the complaint or the material A brought on record to arrive at a conclusion whether a prima facie case has been made out or not. It has singularly addressed the controversy on the legal backdrop that when a document is produced in a civil proceeding, it attracts the bar under Section 195(1)(b)(ii) B of the Code of Criminal Procedure and, therefore, the complaint is not tenable in law. In the case at hand, there is no allegation that document was forged when the matter was subjudice before the Civil Court. The dicta of the Constitution Bench in _Iqbal Singh Marwah_ case is c squarely applicable. The High Court clearly erred in relying on the principle stated in _Gopalakrishna Menon's_ case. The matter is remanded to the High Court for fresh disposal. [Paras 11, 20, 22] [526-F-G; 527-A; 531-F-G; 532-0] _Gopalakrishna Menon and Anr. v. D. Raja Reddy and_ D _Anr._ (1983) 4 sec 240: 1983 (3) SCR 836 - held overruled. ' _Iqbal Singh Marwah and Another v. Meenakshi Marwah and Another_ (2005) 4 SCC 370 - followed. E _Sachida Nand Singh and another v. State of Bihar and another_ (1998) 2 sec 493 - relied on. _Smt. Nagawwa v. Veeranna Shivalingappa Konjalgi and others_ (1976) 3 SCC 736: 1976 (0) Suppl. SCR 123; _State of Haryana and others v. Bhajan Lal and others_ 1992 Supp (1) SCC 335; _Patel Laljibhai Somabhai v. State of Gujarat_ (1971) 2 SCC 376; _Raghunath v. State of U.P._ (1973) 1 SCC 564; _Mohan Lal v. State of Rajasthan_ (1974) 3 SCC 628; _Legal Remembrancer of Govt. of W.B. v. Haridas Mundra_ (1976) 1 SCC 555; _Surjit Singh v. Balbir Singh_ (1996) 3 SCC 533 and _M.S. Sheriff v. State of Madras_ 1954 SCR 1144 - referred to. F G H [2014] 11 S.C.R. 522 SUPREME COURT REPORTS |A|CaseLaw|LawReference:|| |---|---|---|---| ||1983 (3) SCR 836|heldoverruled|Para 7| ||1976 (0) Suppl. SCR 123|referredto|Para 7| |B|(2005) 4sec370|followed|Para 9| ||1992supp(1)sec335|referredto|Para 10| ||(1998) 2sec493|relied on|Para 12| ||(1971) 2sec376|referredto|Para 12| |c|(1973) 1sec564|referredto|Para 12| ||(1974) 3sec628|referredto|Para 12| ||(1976) 1sec555|referredto|Para 12| |D|(1996) 3sec533|referredto|Para 13| ||1954 SCR 1144|referredto|Para 18| A c CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No. 2165 of 2014. E From the Judgment and Order dated 07.01.2011 in MC No. 1 of 2010, in CRLMC No. 5808 of 2001 and 03.03.2012 in CRLMC No. 5808 of 2001 of the High Court of Orissa at Cuttack. F Tejaswi Kumar Pradhan for the Appellant. C.S.N. Mohan Rao, R. Santhan Krishnan, Aditya Kumar for the Respondents. The Judgment of the Court was delivered G ## JUDGMENT 1. Delay condoned. 2. Leave granted. H 3. The present appeal, by special leave, calls in question GEORGE BHAKTAN _v._ RABINDRA LELE • 523 the legal defensibility of the order dated 03.03.2012, passed by the High Court of Orissa at Cuttack in CrMC No. 5808/2001 whereby the learned Single Judge has quashed the order of cognizance dated 18.10.2000 passed by the learned SDJM, Panposh, Rourkela in ICC Case No. 92 of 1998. A 8 4. The broad essential facts which are required to be adumbrated for the adjudication of the appeal are that the appellant-complainant filed a complaint under Section 200 of the Code of Criminal Procedure, 1973 (for short 'the Code') against the accused-respondents alleging commission of offences under Section 425, 468 and 471 of the Indian Penal C Code, 1860 ( for short 'the IPC') on the foundation that the complainant, the Managing Director of Ores India (P) Ltd. had approached the accused persons for supply of machines and equipments for establishing an Iron Ore Crusher Unit at village Regalveda in the district of Sundargarh with the financial D assistance from Orissa State Financial Corporation (OSFC). The accused persons being desirous of supplying the machinery and equipments persuaded the complainant to place the purchase order in their favour and on the basis of their past performance, the appellant placed the purchase order on E 23.10.1997. As stipulated in the said purchase order, the accused persons, apart from other things, had agreed to provide designing and drawing for complete plant with 15 months guarantee from the date of dispatch. On the basis of the purchase order, the complainant sent cheques for Rs.15 F lakhs and, as alleged, after receipt of the said money the accused persons sent their written confirmation to OSFC acknowledging the receipt of the money. The OSFC, in turn, paid Rs.25 lakhs to the accused persons as an advance keeping in view the commitment made by the complainant. G F 5. As the complaint would further uncurtain, in spite of substantial amount of money being paid by way of advance, no steps were taken by the accused persons to ensure supply of machineries and equipments with an ulterior motive, as a H , 524 SUPREME COURT REPORTS [2014] 11 S.C.R.. A consequence of which the complainant suffered huge loss. It is asserted in the complaint petition that with the intention to cause wrongful loss and damage to the complainant, accused persons procured a letter pad of the complainant from a staff of the company and typed a letter with the signature of George B Bakhtan on that letter so that they would get an extension from the OSFC regarding the date of purchase. It is further alleged that the accused persons orchestrated a conspiracy and contrived to manipulate the transaction but eventually the machineries were not supplied. In this backdrop, the complaint c was lodged for the offences which have been mentioned hereinbefore. 6. On the basis of the complaint, initial statement of the complainant was recorded under Section 200 of the Code and thereafter an enquiry was conducted under Section 202 of the D Code and ultimately cognizance was taken. Be it stated, for some reason, the order of cognizance initially taken was set aside by the High Court and the matter was remitted to the trial court to deal with the aspect of cognizance in accordance with law. Thereafter, vide order dated 18.10.2000, the learned E Magistrate took cognizance in respect of the offences. 7. Being grieved by the aforesaid order, the respondents preferred a petition under Section 482 of the Code. The primary plank of proponement before the High Court was that the order F of cognizance was sensitively susceptible inasmuch as the alleged forged document was produced in the suit brought by the respondents and, therefore, the prohibition contained in Section 195(1}(b)(ii) would get attracted on all fours. To bolster the said submission, reliance was placed on a two-Judge Bench G decision in _Gopalakrishna Menon and Anr. VD. Raja Reddy and Anr'._ The said submission was resisted by the counsel for the complainant placing reliance on _Smt. Nagawwa V. Veeranna Shivalingappa Konjalgi and others2._ The High 1. (1983) 4 sec 240. - H 2. (1976) 3 sec 736. GEORGE BHAKTAN _v._ RABINDRA LELE 525 • Court, appreciating the legal submissions, came to hold as A follows:- "8. In the case at hand, the prosecution is on the basis of a private complaint and in the absence of a complaint from the appropriate civil court, where the alleged fraudulent 8 document has been produced, would not be sustainable and such proposition is no longer res integra what has been settled by the Hon'ble supreme Court in the judgment rendered in the case of _Gopa/akrishna Menon_ & _another_ (supra). c 9. In view of the aforesaid conclusion, I am of the considered view that if the prosecution is allowed to continue, serious prejudice would be caused to the petitioners and they would be called upon to face the trial which would not be sustainable. Hence, the order of D cognizance dated 18.10.2000 passed in LC.C. case No. 92 of 1998 by the learned S.D.J.M., Panmposh, Udit Nagar, Rourkela is set aside and it is left open for the opposite party-company, if so advised, to make such complaint before the Civil Court, Vadodara if aggrieved E in any manner to the alleged forged document produced before the said court who would be competent to deal with the same." E 8. As is evincible, at the said juncture, the High Court did not think it appropriate to dwell upon the justifiability of the order taking cognizance on facts, for it set aside the order solely on the basis of the principle stated in _**Gopalakrishna menon**_ (supra). F > 9. Attacking the aforesaid order Mr. Tejaswi Kumar G Pradhan learned counsel for the appellant submitted that the order passed by the High Court suffers from incurable infirmity, for it has relied on a decision which has not been accepted by the Constitution Bench in _**Iqbal Singh Marwah and Another**_ H 526 SUPREME COURT REPORTS [2014) 11 S.C.R. • A _**V. Meenakshi Marwah and Anothef'.**_ It is also urged by him that it would have been advisable on the part of the High Court to deal with the lis on the bedrock of law as well as on the factual score and as the same has not been done, the impugned order is wholly unsustainable and deserves to be set B aside. 10. Mr. Mohan Rao, learned counsel appearing for the respondents, resisting the aforesaid submissions urged that though the principle stated in _**Gopalakrishna Menon's**_ case C (supra) may not be applicable in praesenti, yet had the High Court perused the documents which have been alleged to have been forged by the complainant it would have come to a definite conclusion that no case has been made out in respect of the alleged offences. It is his further submission that present case is one which falls in one of the seven categories as enumerated 0 in _**State of Haryana and others v. Bhajan Lal and others".**_ That apart, Mr. Rao would also contend that the allegation in the complaint petition as regards the receipt of amount by way of cheques sent by the complainant is a false one inasmuch E as the cheques for the said amount were dishonoured and proceedings under Section 138 of the Negotiable Instruments Act, 1881 were instituted against the respondents and hence, the instant criminal proceeding, being a malafide one, deserve~ to be quashed. F 11. On a perusal of the order passed by the High Court, it is absolutely pellucid that it has not adverted to any _aspect_ pertaining to the allegations in the complaint or the material brought on record to arrive at a conclusion whether a prima facie case has been made out or not. It has singularly G addressed the controversy on the legal backdrop that when a document is produced in a civil proceeding, it attracts the bar under Section 195(1 )(b)(ii) of the Code and, therefore, the F 3. (2005) 4 sec _310._ - H 4. 1992 Supp (1) sec 335. 527 GEORGE BHAKTAN _v._ RABINDRA LELE A • _v._ complaint is not tenable in law. In _Gopalakrishna Menon's_ case the two-Judge Bench referred to various provisions of the Code and eventually ruled thus: "If S. 195 (1)(b)(ii) is attracted to the facts of the present case, in the absence of a complaint in writing of the Civil Court where the alleged forged receipt has been produced, taking of cognizance of the offence would be bad in law and the prosecution being not maintainable, there would be absolutely no justification to harass the appellants by allowing prosecution to have a full dressed trial." 12. In _Sachida Nand Singh and another v._ State _of Bihar and another_ a three-Judge Bench was dealing with the question whether a prosecution can be maintained in respect of a forged document produced in a court unless complaint has been filed by the court concerned in that behalf. Elaborating the posed question the Court stated that the question involved is whether prohibition contained in Section 195(1)(b)(ii) of the Code would apply to such prosecution. Proceeding further the three-judge Bench observed that though the question was ticklish, yet it had almost received a quietus with the pronouncement in _Patel Laljibhai Somabhai v. State of Gujarat',_ however, a subsequent decision in _Gopalakrishna Menon's_ case struck a different note and thereby revived the issue that had been put to rest. After referring to the language employed in Sections 340 and 195 of the Code and the decisions in _Raghunath v. State of U.P.7, Mohan Lal v. State of Rajasthan•_ and _Legal Remembrancer of Govt. of W.B. v. Haridas Mundra[9] ,_ the Court finally opined thus:- B C D E F G 5. (1998) 2 sec 493. 6. (1971) 2 sec 376. 7. (1973) 1 sec 564. 8. (1974) 3 sec 628. 9. (1976) 1 sec 555. H SUPREME COURT REPORTS 528 [2014] 11 S.C.R . A B c "Of course in the end of that decision it was mentioned that prosecution on the basis of a private complaint, in the absence of a complaint from appropriate civil court, is not sustainable. Learned Judges made reference to the decisions in _Patel Laljibhai Somabhai and S.L. Goswami (Dr) v. High Court of M.P._[10 ] , and observed that the ratio in those decisions support the view taken by them. The forgery alleged in _Goswami case_ took place during the period when the document in question was in the custody of the Court and in such a case the bar under Section 195(1)(b)(ii) would certainly apply. But, with great respect, we are unable to agree that the ratio in _Laljibhai Somabhai_ would support the conclusion reached in _Gopalakrishna Menon case._ 13. From the aforesaid it is limpid that the principle stated D in _Gopalkrishna Menon_ (supra) has specifically been overruled in _Sachida Nand Singh's_ case. Despite the threeJudge Bench decision in _Sachida Nand Singh_ (supra) the controversy was not allowed to rest. Thereafter the conflict was seen in the principle stated in _Surjit Singh v. Balbir Singh[11] ,_ E a decision rendered by a three-Judge Bench and _Sachida Nand Singh_ (supra) and both pertained to interpretation of Section 195 (1)(b)(ii) of the Code and, therefore, the controversy travelled to the Constitution Bench in _Iqbal Singh Marawah's case._ F 14. The Constitution Bench after analyzing in detail the contours of provisions contained in Section 340, 195(1)(b) and after referring to the decisions in _Patel Laljibhai_ (supra), _Raghunath_ (supra) and taking note of deletion of certain words G occurring in Section 195(1) of the old Code, and the 41st report of the Law Commission, came to hold as follows: • In view of language used in Section 340 CrPC the Court 10. (1979) 1 sec 373. H 11. (1996) 3 sec 533. GEORGE BHAKTAN _v._ RABINDRA LELE 529 • A is not bound to make a complaint regarding commission A of an offence referred to in Section 195(1)(b), as the section is conditioned by the words "court is of opinion that it is expedient in the interests of justice". This shows that such a course will be adopted only if the interest of justice requires and not in every case. Before filing of the B complaint, the court may hold a preliminary enquiry and record a finding to the effect that it is expedient in the interest of justice that enquiry should be made into any of the offences referred to in Section 195(1) (b). This expediency will normally be judged by the court by c weighing not the magnitude of injury suffered by the person affected by such forgery or forged document, but having regard to the effect or impact, such commission of offence has upon administration of justice. It is possible that such forged document or forgery may cause a very serious or 0 substantial injury to a person in the sense that it may deprive him of a very valuable property or status or the like, but such document may be just a piece of evidence produced or given in evidence in court, where voluminous evidence may have been adduced and the effect of such E piece of evidence on the broad concept of administration of justice may be minimal. In such circumstances, the court may not consider it expedient in the interest of justice to make a complaint. The broad view of clause (b) (ii), as canvassed by learned counsel for the appellants, would F render the victim of such· forgery or forged document remediless. Any interpretation which leads to a situation where a victim of a crime is rendered remediless, has to be discouraged." 15. Thereafter, the larger Bench proceeded to observe G thus: "An enlarged interpretation to Section 195(1 )(b)(ii), whereby the bar created by the said provision would also operate where after commission of an act of forgery the H .. 530 SUPREME COURT REPORTS [2014] 11 S.C.R. • - A document is subsequently produced in court, is capable of great misuse. As pointed out in _Sachida Nand Singh_ after preparing a forged document or committing an act of forgery, a person may manage to get a proceeding instituted in any civil, criminal or revenue court, either by - B himself or through someone set up by him and simply file the document in the said proceeding. He would thus be protected from prosecution, either at the instance· of a - · private party or the police until the court, where the document has been filed, itself chooses to file a complaint. - c The litigation may be a prolonged one due to which the actual trial of such a person may be delayed indefinitely. Such an interpretation would be highly detrimental to the interest of the society at large." 16. On the base of aforesaid ratiocination, the Constitution D Bench approved the principle laid down in _Sachidanand Singh_ (supra) by stating thus: - . ;,, - "In view of the di~cussion made above, we are of the. opinion that _Sachida Nand Singh_ has been correctly - E decided and the view taken therein is the correct view. Section 19591)(b)(ii) CrPC would be attracted only when the offences enumerated in the said provision have been committed with respect to a document after it has been produced or given in evidence in a proceeding in any court - F i.e. during the time when the document was in _custodia legis_ " In view of the aforesaid the law laid down in _Gopalkrishna Menon_ (supra) is no more good law. G 17. Be it stated, the Constitution Bench repelled the argument of strict construction and distinguishing many a decision, came to hold that Section 195 is not a penal provision but is a part of procedural law, namely, CrPC, which elaborately gives a procedure for trial of criminal cases. Proceeding H further, their Lordships held that the provision only creates a bar • : GEORGE BHAKTAN _v._ RABINDRA LELE 531 against taking cognizance of an offence in certain specified A situations except upon complaint by Court and a penal statute is one upon which an action for penalties can be brought by a public officer or by a person aggrieved and a penal act in its wider sense includes every statute creating an offence against the State, whatever is the character of the penalty ·for the B offence. A 18. Dealing with the argument that there should be no conflict in the findings recorded by the civil and criminal court, the Constitution Bench referred to earlier Constitution Bench C decision in **M.S.** _**Sheriff V.**_ **State** _**of Madras[12 ]**_ and declined to accept the said submission. 19. Eventually, taking note of the facts in that case, the Court held the Will in question had been produced in the Court subsequently and there was no allegation that the offence as enumerated in Section 195(1)(b){ii) was committed in respect of the said Will after it had been produced or filed in the Court, the bar created by the said provision would not come into play and hence, there was no embargo on the power of the court to take cognizance of the offence on the basis of the complaint filed by the complainants therein. D E 20. In the case at hand, as we find, the allegation in the complaint is that the respondents had forged the signature of the complainant and submitted to the Corporation seeking F extension of the period of supply. Thereafter, seeking certain relief a suit was filed and in the suit the document was filed. There is no allegation that this document was forged when the matter was subjudice before the Civil Court. Thus, the dicta of the Constitution Bench is squarely applicable. The High Court G has clearly erred in relying on the principle stated in _**Gopalakrishna Menon's**_ **case** (supra) which makes the impugned order wholly indefensible. 12. 1954 SCR 1144 .. H 532 SUPREME COURT REPORTS [2014] 11 S.C.R A A 21. We have already taken note of the submission of Mr. Rao that the High Court has not adverted to the factual score whether a case has been made out on the basis of the material brought on record. In the absence of any findings in that regard by the High Court, we do not intend to take up the burden on B ourselves. That makes it obligatory on our part to set aside the order passed by the High Court and remand the matter to it for fresh consideration whether in the obtaining factual matrix the order of cognizance deserves to be lancinated. We would request the High Court to dispose of the petition within a period c of three months as the matter has been continuing for long. We may hasten to clarify that we have not expressed any opinion on the merits of the case. 22. Consequently, the appeal is allowed, the order passed 0[by the High Court ][is ][set aside and the matter is remanded to ] the High Court for fresh disposal in accordance with law. Bibhuti Bhushan Bose Appeal allowed.