Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Crl.), 123 of 2016, Judgment Date: Feb 15, 2016

                                                                  Reportable

                        IN THE SUPREME COURT OF INDIA

                       CRIMINAL APPELLATE JURISDICTION

                   CRIMINAL APPEAL NO.    123      of 2016
               (Arising out of the SLP(Crl.) No. 7767 of 2011)


AIR CUSTOMS OFFICER IGI NEW DELHI                               …. Appellant

                                   Versus

PRAMOD KUMAR DHAMIJA                                           …. Respondent

                               J U D G M E N T

Uday U. Lalit, J.



1.    Leave granted.


2.    This appeal challenges the judgment and order dated 04.1.2011 passed
by the High Court of Delhi at New Delhi in Crl. M.C. No.460 of 2009.

3.    That the facts leading to the filing of this appeal are as under:-

  On the basis of specific information, AIR  Customs  Officers  (Preventive)
at IGI Airport, New Delhi, on 09.07.1996  recovered  and  seized  from  meal
trolleys of the aircraft of Lufthansa Airlines  flight   from  Frankfurt  to
Delhi,  184 gold biscuits  of  ten  tolas  each,  weighing  21454.400  grams
valued  at  Rs.1,09,84,652/-  concealed  in  the  meal   trolleys   by   two
passengers, named Varyam  Singh  and  Ranbir  Singh.  In  their  statements,
Varyam Singh and Ranbeer Singh admitted the recovery  and  seizure  of  gold
and named  other persons involved  in  the  incident.  Varyam  Singh,  inter
alia, disclosed the name of one Pramod Kumar i.e. the respondent herein  who
invested the money with him in the seized gold as well as the gold  smuggled
on earlier occasions.

Varyam Singh further stated that on 6.07.1996,  Ranbeer Singh  and  he  went
to Dubai where the respondent delivered two packets of gold; that they  went
to Frankfurt; that in the flight from Frankfurt to Delhi with  the  help  of
Ranbeer Singh, he put both the packets in dry ice trays  and  as  per   pre-
arrangement these packets were to be removed and delivered to him near  Moti
Bagh Gurudwara by the catering staff and that  he  had  agreed  to  pay  Rs.
50,000/- for this job to that person; that he had to hand over this gold  to
the respondent  and in return he was  to  get  Rs.  2,00,000/-  out  of  the
profit; that his share of investment in the  gold  seized  on  9.7.1996  was
Rs.Thirty Two lacs and that the balance was invested by the  respondent.  He
admitted that earlier he had gone to Frankfurt via Dubai and  come  back  to
Delhi on six occasions and brought gold in the same manner. The  authorities
recorded the statements of all the persons involved. However, the  statement
of the respondent could not be recorded as inspite of numerous  summons,  he
did not cooperate  with  the  investigating  authorities   and  remained  in
hiding.

 The Commissioner of Customs, Delhi accorded sanction on 04.09.1996 for  the
prosecution of the respondent, Varyam Singh, Ranbeer Singh and  four  others
and accordingly Complaint No. 66/1/96 was filed in the Court  of  ACMM,  New
Delhi. The respondent was declared “proclaimed offender” by  the  Ld.  ACMM,
New Delhi in the subject case.


In the meantime adjudicating proceedings  were  initiated  pursuant  to  the
show cause notice to the respondent.  Order  in  Original  No.  66/99  dated
30.09.1999 was  passed  by  the  Additional  Commissioner  of  Customs,  IGI
Airport, New Delhi  imposing  penalty  of  Rs.15  lacs  on  the  respondent.
Following observations in the said order are noteworthy:-
“In response to  summons  Shri  Kanwar  Bhan  appeared  before  the  Customs
authorities and he  in  his  further  voluntary  statement  dated  30.8.1996
recorded under Section 108 of the Customs Act,  1962,  stated  that  he  was
shown the  record  of  details  of  call  charges  of  Mobile  phone  number
9811028643 obtained  from Essar Cell Phone mobile phone  services,  that  on
21.04.1996 and 27.04.1996 telephone calls  were  made  to  telephone  number
6914037; that he had been told that telephone  number  6914037  belonged  to
Shri Varyam Singh and was his residence number and  who  had  been  arrested
for smuggling of 184 gold biscuits. On being  asked  about  that  he  stated
that neither did he know any person by name of Shri  Varyam  Singh  nor  his
telephone number on being asked about as to how telephone  calls  were  made
to telephone number 6914037 on 21.04.1996  three  times  and  one   time  on
27.04.1996 from his mobile phone, he stated that he did not know  the  exact
date but in the month of April, 1996, his younger brother Shri Pramod  Kumar
came to Delhi from Dubai as his  mother  was  seriously  ill,  it  might  be
possible that  Shri Pramod Kumar had made four calls from his (Kanwar  Bhan)
mobile phone to telephone number 6914037 belonging to Shri Varyam  Singh  as
he did not know Shri Varyam Singh  and his telephone number.”


  The aforesaid order dated 30.09.1999  was  carried    in  appeal  and  the
Commissioner    of    Customs    (Appeal)    vide    his     order     dated
  25.01.2008  set  aside  the  penalty  imposed  on  the  respondent.    The
Appellate Authority was of the view that there were two persons having  same
name i.e. Pramod Kumar, one in Dubai and the  second  being  the  respondent
and  that beyond the statement of the co-accused there was  no  material  on
record.  During the course of this order it was observed as under:-
“If the investment was made by Shri Pramod Kumar of Dubai,  then  it  cannot
be linked to the appellant. The department has not made  Shri  Pramod  Kumar
of Dubai a party in the case and  nothing  is  on  record  to  suggest  that
efforts were made to trace and identify Shri Pramod Kumar of Dubai  and  how
the telephone number in Dubai i.e. 531228 is linked to the appellant.

Thus there is only the lone statement of  Shri  Varyam  Singh  alleging  the
involvement of the appellant and is not corroborated  by  the  statement  of
any other person or by any documentary  evidence.  On  the  other  hand  the
claim of the appellant that he had left India on 06.09.1994 and  since  then
he has not visited India again is corroborated by the statements of  various
persons tendered under Section 108 of the  Customs  Act  1962  and  also  by
documentary evidence i.e. copies of his passports. No other person  involved
in the case has mentioned anything about the appellant. Thus  the  statement
of Shri Varyam Singh who himself accepted as evidence whereas the  claim  of
the appellant is supported by way of corroborative statements under  Section
108 of the Customs Act  1962  and  documentary  evidence  is  acceptable  as
credible evidence in his favour. Moreover the appellant  has  not  laid  any
claim on the impugned gold under seizure in this case.

Keeping the above in view the finding of the  Adjudicating  Authority  about
the appellant are not fair, legal and based on facts and hence  the  penalty
imposed on the appellant is hereby set aside.”

    Based on the observations and findings rendered in the  aforesaid  order
dated 25.01.2008, a petition under Section 482  of  the  Criminal  Procedure
Code being Crl. M.C. No. 460 of 2009 was filed on behalf of  the  respondent
in the High Court of  Delhi at New Delhi. It is relevant  to  note  that  in
the petition itself two addresses of  the  respondent  were  given,  one  of
Dubai and the other of Delhi. The affidavit in support of the  petition  was
filed by none other than Shri Kanwar Bhan, the brother  of  the  respondent.
It was submitted on behalf of the Department that  the  respondent  had  not
joined investigation and as such the instant petition did  not  deserve  any
consideration and that there were not two Pramod Kumars but only one  person
having two addresses. The  High  Court  by  its  judgment  and  order  under
appeal, allowed  the  petition  and  quashed  Complaint  No.66/1/96  pending
before the Additional Chief  Metropolitan  Magistrate,  New  Delhi.  It  was
observed by the High Court as under:-
“The entire evidence sought to be relied upon by the  respondent  department
against the petitioner is the same, that was before the Appellate  Authority
and since the Appellate Authority had considered  the  entire  evidence  and
come to above conclusion, I consider that no useful purpose would be  served
by continuing with the prosecution against the petitioner before  the  trial
court.”


4.    The exoneration of the respondent in the adjudication proceedings  was
the basis for petition  under  Section  482  Cr.P.C.  and  such  exoneration
certainly weighed with the High Court. In  Collector  of  Customs   v.  L.R.
Melwani[1], question Nos.1 & 2 posed before the Constitution Bench  of  this
Court were as  under:-
“(i)  Whether the prosecution from which these criminal  revision  petitions
arose is barred under Article 20(2) of the Constitution as  against  accused
1 and 2 in that case by reason of the decision of the Collector  of  Customs
in the proceedings under the Sea Customs Act?

(ii)  Whether under  any  circumstance  the  finding  of  the  Collector  of
Customs that the 1st and 2nd accused are not proved to  be  guilty  operated
as in issue estoppel in the criminal case against those accused?”


5.    The observations of the court in respect of aforesaid  questions  were
as under:-
“8…… The rule laid down in that  decision  was  adopted  by  this  Court  in
Pritam Singh v. State of Punjab, and again in N.R. Ghose v.  State  of  W.B.
But before an accused can call into aid the above rule,  he  must  establish
that in a previous lawful trial before a competent court, he has  secured  a
verdict of acquittal which verdict is binding on his prosecutor.     In  the
instant case for the reasons already mentioned, we are unable to  hold  that
the proceeding before the Collector of Customs is a  criminal  trial.   From
this it follows that the decision of the Collector  does  not  amount  to  a
verdict of acquittal in favour of accused 1 and 2.”


6.    A subsequent three-Judge Bench in K.G.  Premshankar  v.  Inspector  of
Police [2] considered the effect  of  the  decision  of  a  civil  court  on
criminal proceedings and  it was concluded as under:-
“30…. What emerges from  the  aforesaid  discussion  is  –(1)  the  previous
judgment which is final can be relied upon as provided under Sections 40  to
43 of the Evidence Act;  (2)  in  civil  suits  between  the  same  parties,
principle of res judicata may apply; (3) in a  criminal  case,  Section  300
Cr.P.C. makes provision that once a person is  convicted  or  acquitted,  he
may not be tried again for the same  offence  if  the  conditions  mentioned
therein are satisfied; (4) if the criminal  case and the  civil  proceedings
are for the same cause, judgment of the civil court  would  be  relevant  if
conditions of any of Sections 40 to 43 are satisfied, but it cannot be  said
that the same  would  be  conclusive  except  as  provided  in  Section  41.
Section 41 provides which judgment would be  conclusive  proof  of  what  is
stated therein.

31.   Further, the judgment, order or decree  passed  in  a  previous  civil
proceeding, if relevant, as provided under  Sections  40  and  42  or  other
provisions of the Evidence Act then in each case, the court  has  to  decide
to what extent it is binding or conclusive  with  regard  to  the  matter(s)
decided therein….

32.   In the present case, the decision rendered by the  Constitution  Bench
in M.S. Sheriff case would be binding,  wherein  it  has  been  specifically
held that no hard-and-fast rule can be laid down  and  that  possibility  of
conflicting decision  in  civil  and  criminal  courts  is  not  a  relevant
consideration. The law envisages

‘such an  eventuality   when  it  expressly  refrains  from      making  the
decision of one court binding on the other, or  even  relevant,  except  for
limited purpose such as sentence or damages’”.


 7.    The exoneration in related adjudication proceedings  and  the  effect
thereof on criminal proceedings again came up  for  consideration  before  a
three-Judge Bench of this Court in Radheshyam  Kejriwal  v.  State  of  West
Bengal and Another[3].   In his dissenting opinion  P.  Sathasivam,  J.  (as
the learned Chief Justice  then was) concluded that  there  was  nothing  in
Foreign Exchange  Regulation  Act,  1973  to  indicate  that  a  finding  in
adjudication is binding on a court in prosecution under Section  56  of  Act
or that the prosecution under Section 56 depended upon  the  result  of  the
adjudication under the Act.  C.K.  Prasad  J.,  speaking  for  the  majority
summed up as under:-
“38. The ratio which can be culled out from these decisions can  broadly  be
stated as follows:-
(i)   Adjudication proceedings and  criminal  prosecution  can  be  launched
simultaneously;

(ii)   Decision  in  adjudication  proceedings  is  not   necessary   before
initiating criminal prosecution;

(iii) Adjudication proceedings and criminal proceedings are  independent  in
nature to each other;

(iv)  The finding against the person facing prosecution in the  adjudication
proceedings is not binding on the proceeding for criminal prosecution;

(v)    Adjudication  proceedings  by  the  Enforcement  Directorate  is  not
prosecution by a competent  court  of  law  to  attract  the  provisions  of
Article 20(2) of the Constitution or Section 300 of  the  Code  of  Criminal
Procedure;

(vi)  The finding in the adjudication proceedings in favour  of  the  person
facing trial  for  identical  violation  will  depend  upon  the  nature  of
finding: If the exoneration in  adjudication  proceedings  is  on  technical
ground and not on merit, prosecution may  continue; and

(viii)      In case of exoneration, however, on merits where the  allegation
is found to be  not  sustainable  at  all  and  the  person  held  innocent,
criminal prosecution on the same set of facts and  circumstances  cannot  be
allowed to continue the underlying principle being the  higher  standard  of
proof in criminal cases.”

8.    The majority judgment in Radheyshyam Kejriwal v. State of West  Bengal
and  Another[4]  is  relied  upon  by  the  respondent  in  support  of  the
submission  that the exoneration  in  the  present  case  being  on  merits,
criminal prosecution on the same set of facts ought not  to  be  allowed  to
continue.    Ms.  Ranjana  Narayan,  learned  Advocate  appeared   for   the
appellant while Mr. Naveen  Malhotra,  learned  Advocate  appeared  for  the
respondent. We have considered  rival  submissions  and   gone  through  the
record which brings out following crucial facets :-

(a)   The order in original dated 30.09.1999 referred to  the  statement  of
Kanwar Bhan, the brother of the respondent, which clearly suggests that  the
respondent had come down to Delhi in  April, 1996.  This  statement  is  not
even referred to in the appellate order dated 30.09.1999 but  a  finding  is
rendered that the respondent had not visited India after September, 1994.

(b)   The  respondent  was  declared  a  proclaimed  offender  and  had  not
participated in any of the proceedings personally.    In  the  circumstances
no weightage could be given to copies of the passport submitted  in  support
of the assertion that he had not visited India after September 1994.

(c)   The appellate order further discloses that the  statement  of   Varyam
Singh did allege  the  involvement  of  the  respondent.  In  law,  if  such
statement is otherwise admissible  and  reliable,  conviction  can  lawfully
rest on such material.

(d)   The finding in the appellate order that there were two Pramod  Kumars,
is completely incorrect and unstateable.

        In the back drop of these facts  it  cannot  be  accepted  that  the
exoneration of the respondent in the adjudication proceeding was  on  merits
or that he was found completely innocent.

9.   Considering the facts and circumstances of the  case,  we  are  of  the
view that the High Court was  not  right  and  justified  in  accepting  the
prayer for quashing of the proceedings. We,  therefore,  allow  this  appeal
and set-aside the view taken by the High Court. Case  No.  66/1/96,  on  the
file of the ACMM, New Delhi, shall be proceeded  with,  in  accordance  with
law.


                                                                  ………………………J.
                                                           (V. Gopala Gowda)



                                                                …………………..……J.
                                                          (Uday Umesh Lalit)

New Delhi,
February 15, 2016
-----------------------
[1]
      [2] (1969) 2 SCR 438
[3]
      [4] (2002) 8 SCC 87
[5]
      [6] (2011) 3 SCC 581
[7]
      [8] (2011)3 SCC 581