Supreme Court of India

CRIMINAL APPEAL NOs.....................OF 2014 (Arising out of Special Leave Petition (Crl.) No Judgment Date: Dec 01, 2014

                                                                  REPORTABLE

                        IN THE SUPREME COURT OF INDIA
                       CRIMINAL APPELLATE JURISDICTION

               CRIMINAL APPEAL NOs.....................OF 2014
    (Arising out of Special Leave Petition (Crl.) Nos.2521-2522 of 2014)

Union of India etc.
Rep. through Superintendent of Police                    ...Appellant(s)

                                  versus

T. Nathamuni                                            ...Respondent(s)

                               J U D G M E N T


M.Y. Eqbal, J.

      Leave granted.

2.    The present appeals are  directed  against  the  common  judgment  and
order dated 5.7.2013 passed by the Madurai Bench of  Madras  High  Court  in
Crl.O.P. No.1943 & 6464 of 2010, whereby  the  High  Court   set  aside  the
order passed by the Trial court permitting  a  Sub-Inspector  of  Police  to
investigate the matter under the Prevention of Corruption Act.

3.    The facts giving rise to the present appeals are that on the basis  of
a complaint from one S. Muniraj a case being RC  50(A)/2009  was  registered
by Central Bureau of Investigation, ACB, Chennai  against  respondent  -  T.
Nathamuni, Inspector of Income Tax on the allegation that  the  accused  had
demanded an amount of Rs. 5,000/- from the complainant.   A  trap  was  laid
and allegedly the accused was caught red handed while  accepting  the  bribe
amount.  Initially, the case was investigated by Mr. Lawrence, Inspector  of
Police and owing to  some  administrative  reasons,  the  Superintendent  of
Police, Central Bureau of Investigation,  Anti  Corruption  Branch,  Chennai
filed petition dated  22.9.2007  under  Section  17  of  the  Prevention  of
Corruption Act, 1988 (in short, 'the Act')  before  the  Court  of   Special
Judge CBI cases, Madurai seeking permission for investigation  of  the  case
by  Shri  G.A.  Suriya  Kumar,  Sub-Inspector  of  Police,  instead  of  Mr.
Lawrence, Inspector of Police.
4.    The Special Judge for CBI cases, Madurai vide order  dated  24.09.2009
allowed the aforesaid petition permitting G.A. Suriya  Kumar,  Sub-Inspector
of Police to investigate  the  case.   After  completion  of  investigation,
charge sheet dated 01.12.2009 was filed in the  Court  of  Special  Sessions
Judge for CBI cases, Madurai and the Court took cognizance and  assigned  it
CC No.7/2009.

5.    During the course of  trial,  the  respondent  moved  the  High  Court
preferring  criminal  original  petition  under  section  482  of   Criminal
Procedure Code (in short, 'Cr.P.C.') to quash the entire proceedings  in  CC
No.7/2009 on the ground that there is correction in  the  FIR  and  sanction
was not accorded by proper authority.   Respondent  also  preferred  another
petition to call for the records and to quash  the  order  dated  24.09.2009
passed by the Special Judge, Madurai in Crl. M.P. No.549 of 2009  permitting
Shri GA Suriya Kumar, Sub-Inspector of Police to investigate the case.

6.    The High Court vide  its  impugned  order  dated  5.7.2013  set  aside
aforesaid order of the Trial Court on the ground that Section 17 of the  Act
provides that if the officer not below the rank of Inspector  of  Police  is
authorized by the Government, such officer can investigate the case  without
permission of the Court.  There is no specific provision in  Section  17  of
the Act that the Sub-Inspector of Police is also  empowered  to  investigate
the case with the permission of the Court.  The High Court further  observed
that the Special Court without assigning any reason in the  order  permitted
the Sub-Inspector of Police to investigate the matter and the  same  is  not
in accordance with law.

7.    Hence, these appeals by special leave by the Union of  India  as  well
as the State.

8.   We have heard learned counsel for the parties.  Mr.  K.  Radhakrishnan,
learned senior counsel appearing for the appellant submitted that  the  High
Court has failed to appreciate that  Special  Judge  granted  permission  to
aforesaid Sub-Inspector of Police, CBI, Chennai to investigate the case  and
after  completion  of  the  investigation,  charge  sheet  was   filed   and
cognizance was  taken.   Learned  counsel  contended  that  the  High  Court
interpreted Section 17 of the Act erroneously.  The  provisions  of  Section
17(a) of the Act prescribe that without the permission  of  the  Court,  the
investigation of the case below the rank of Inspector of  Police  shall  not
be done.  But in this case, the investigation was done  with  the  order  of
the Court.  Learned counsel submitted that by virtue of Section 5(3) of  the
Delhi Special Police Establishment Act  any  member  of  the  Delhi  Special
Police Establishment of or above the rank of Sub-Inspector is made  officer-
in-charge  of  police  station  and,  therefore,  they  have  the  power  to
investigate into the offences mentioned in the notification under Section  3
of the Act within their respective limits and  they  can  exercise  all  the
functions of the Officer-in-charge of the police station.

9.    Per contra, it has been submitted on behalf  of  the  respondent  that
criminal prosecution was initiated on a complaint given by the Secretary  of
Rajapalayam Town Co-operative Housing Society, Rajapalayam  relating  to  an
enquiry in connection with evasion of payment of income tax  for  the  house
building owned by him.  However, investigation has  been  conducted  without
prior sanction of the competent authority as required under  Section  19  of
the Act.  In the present case, sanction had been given  by  Commissioner  of
Income Tax after completion of investigation.   It  is  contended  that  the
powers of the High Court under Section  482  is  wide  and  full  enough  to
interfere in this case where the  lower  court  made  investigation  without
proper sanction as is mandated under Section 19 of the Act  and  also  where
investigation is done by a person below the rank of Inspector of  Police  as
mandated under Section 17 of the  Act.   It  is  further  submitted  by  the
respondent that the Court  has  no  power  to  grant  permission  to  police
officer below the rank of Inspector  of  Police,  without  any  specific  or
general order of the Government to that effect for such an officer.  It  was
further submitted by the counsel that the accused has all  justification  in
challenging the faulty procedure  in  investigation.   Since  provisions  of
Section 17 and 19 are held mandatory, once protections  under  the  Act  are
taken away, public servants cannot carry out  their  public  duties  without
fear or fervor.

10.   While setting aside order of the  trial  court,  the  High  Court  has
observed that reading of Section  17  of  the  Act  discloses  that  if  the
Officer not below the rank of the Inspector of Police is authorized  by  the
Government, such officer can investigate the case without permission of  the
Court.

11.   In the instant case, the only question that needs to be considered  is
as to whether the  order  passed  by  the  Magistrate  permitting  the  Sub-
Inspector, CBI, Chennai to investigate the matter can be sustained  in  law.
 The only ground taken by the respondent in  the  quashing  petition  before
High Court is that as per the provisions of  Section  17  of  Prevention  of
Corruption Act, 1988, no officer below the rank of Inspector  of  Police  is
authorized by the Government to investigate the case without  permission  of
the Court.  Further, Section 17 does not confer any power to  the  Court  to
grant permission  to  Sub-Inspector  of  Police  to  investigate  the  case.
Hence, order passed  by  the  Magistrate  permitting  the  Sub-Inspector  of
Police to investigate the case  is  without  jurisdiction  and  against  the
mandatory provisions of Section 17 of the Act as well as Article 21  of  the
Constitution of India.  Before answering  the  question  we  would  like  to
refer to Section 17 of the Prevention of Corruption Act,  1988  which  reads
as under:-

"17. Persons authorised to investigate.-Notwithstanding  anything  contained
in the Code of Criminal Procedure, 1973  (2  of  1974),  no  police  officer
below the rank,-
(a) in the case of the Delhi Special Police Establishment, of  an  Inspector
of Police;
(b) in the metropolitan areas of Bombay, Calcutta, Madras and Ahmedabad  and
in any other metropolitan area notified as such  under  sub-section  (1)  of
section 8 of the Code of  Criminal  Procedure,  1973  (2  of  1974),  of  an
Assistant Commissioner of Police;
(c) elsewhere, of a Deputy Superintendent of Police or a police  officer  of
equivalent rank,
shall investigate any offence punishable under this Act  without  the  order
of a Metropolitan Magistrate or a Magistrate of  the  first  class,  as  the
case may be, or make any arrest therefor without a  warrant:  Provided  that
if a police officer not  below  the  rank  of  an  Inspector  of  Police  is
authorised by the State Government in this  behalf  by  general  or  special
order, he may also investigate any such  offence  without  the  order  of  a
Metropolitan Magistrate or a Magistrate of the first class, as the case  may
be, or make arrest therefor without a  warrant:  Provided  further  that  an
offence referred to in clause (e) of sub-section (1)  of  section  13  shall
not be investigated without the order of a  police  officer  not  below  the
rank of a Superintendent of Police."

12.   It is clear that in the case of investigation under the Delhi  Special
Police Establishment Act, an officer below  the  rank  of  Inspector  cannot
investigate without the order of a competent  Magistrate.   In  the  present
case, order of the Special Judge was  obtained  by  filing  an  application.
That order dated 24.9.2009 shows that it was passed on request  and  in  the
interest of justice, investigation pursuant to such  order  did  not  suffer
from want of jurisdiction and hence, in the facts  of  the  case,  the  High
Court erred in law in interfering with such investigation more  so  when  it
was already completed.

13.   The question raised by the respondent is well answered by  this  Court
in a number of decisions rendered in a different  perspective.   The  matter
of investigation by an officer not authorized by law has  been  held  to  be
irregular.  Indisputably, by the order of the Magistrate  investigation  was
conducted by Sub-Inspector, CBI  who,  after  completion  of  investigation,
submitted charge-sheet.  It was only during the trial, objection was  raised
by the Respondent that the order passed by the  Magistrate  permitting  Sub-
Inspector, CBI to investigate is without  jurisdiction.   Consequently,  the
investigation conducted by  the  officer  is  vitiated  in  law.   Curiously
enough  the  respondent  has  not  made  out  a  case  that  by  reason   of
investigation  conducted  by  the  Sub-Inspector  a  serious  prejudice  and
miscarriage  of  justice  has  been  caused.    It  is  well  settled   that
invalidity  of  investigation  does  not  vitiate  the   result   unless   a
miscarriage of justice has been caused thereby.

14.   In the case of Dr. M.C. Sulkunte vs. The State of Mysore, AIR 1971  SC
508, the main question raised by the appellant  in  an  appeal  against  the
order of conviction was that the sanction to investigate the  offence  given
by the Magistrate was not proper in as much  as  he  had  not  recorded  any
reason as to why he had given permission  to  the  Inspector  of  Police  to
investigate  the  offence  of  criminal  misconduct  of  obtaining   illegal
gratification.   Considering  Section  5(A)  of  the  Act  Their   Lordships
observed:-
"15. Although laying the trap was part of the investigation and it had  been
done by a Police Officer below  the  rank  of  a  Deputy  Superintendent  of
Police, cannot on that ground be held that the sanction was invalid or  that
the conviction ought not to be  maintained  on  that  ground.  It  has  been
emphasised in a number of decisions of  this  Court  that  to  set  aside  a
conviction it must be shown that there has been miscarriage of justice as  a
result of an irregular investigation. The observations in State of  M.P.  v.
Mubarak Ali, 1959 Supp 2 SCR 201 at pp 210 and 211, to the effect that  when
the Magistrate without applying his mind only mechanically issues the  order
giving permission the investigation is tainted  cannot  help  the  appellant
before us."

15.   In the case of Muni Lal vs. Delhi Administration, AIR  1971  SC  1525,
this Court was considering the question with regard to the irregularity   in
investigation for the  offence  under  the  Prevention  of  Corruption  Act.
Following earlier decisions, this Court held:-
"4. From the above proposition it follows that where cognizance of the  case
has in fact been taken and  the  case  has  proceeded  to  termination,  the
invalidity of the  preceding  investigation  will  not  vitiate  the  result
unless miscarriage of justice has been caused thereby and  the  accused  has
been prejudiced. Assuming in favour of the  appellant,  that  there  was  an
irregularity in the investigation and that Section 5-A of the Act,  was  not
complied with in substance, the trial by the Special Judge  cannot  be  held
to be illegal unless it is  shown  that  miscarriage  of  justice  has  been
caused on account of illegal investigation.  The  learned  counsel  for  the
appellant has been unable to show us how there has been any  miscarriage  of
justice in this case  and  how  the  accused  has  been  prejudiced  by  any
irregular investigation."

16.  In the case of State of Haryana vs. Bhajan Lal, AIR 1992 SC  604,  this
Court while considering Section 5A of the Act, held as under:
"125. It has been ruled by this Court in several decisions that Section  5-A
of the Act is mandatory and not directory and  the  investigation  conducted
in violation thereof bears the  stamp  of  illegality  but  that  illegality
committed in the course of an investigation does not affect  the  competence
and the jurisdiction of the court for trial and where the cognizance of  the
case has in fact been taken and the case is proceeded  to  termination,  the
invalidity of the  preceding  investigation  does  not  vitiate  the  result
unless miscarriage of justice has been caused thereby. See (1) H.N.  Rishbud
and Inder Singh v. State of Delhi (AIR 1955 SC 196); (2) Major  E.G.  Barsay
v. State of Bombay (1962) 2 SCR  195;  (3)  Munna  Lal  v.  State  of  Uttar
Pradesh, ((1964) 3 SCR 88; (4) S.N. Bose v. State of  Bihar,  (1968)  3  SCR
563; (5) Muni Lal v. Delhi Administration, 1971 (2) SCC 48, 6)  Khandu  Sonu
Dhobi v. State of  Maharashtra,  1972  (3)  SCR  510.  However,  in  Rishbud
[pic]case and Muni Lal case, it has been ruled that if  any  breach  of  the
said mandatory proviso relating to investigation is brought  to  the  notice
of the court at an early  stage  of  the  trial,  the  court  will  have  to
consider the nature and extent of the violation and pass appropriate  orders
as may be called for to rectify the illegality and cure the defects  in  the
investigation."

17.   In the case of  A.C.  Sharma  vs.  Delhi  Admn.,  (1973)  1  SCC  726,
provisions of Section 5A were again considered by this  Court  and  held  as
under:
"15. As the foregoing discussion shows  the  investigation  in  the  present
case by the Deputy Superintendent of Police cannot be considered  to  be  in
any way unauthorised or contrary to law. In this connection it  may  not  be
out of place also to point out that the function of investigation is  merely
to collect evidence and any irregularity or even illegality  in  the  course
of collection of evidence can scarcely be considered  by  itself  to  affect
the legality of the trial by an otherwise competent court of the offence  so
investigated. In H.N. Rishabud and Inder Singh v. State of Delhi (supra)  it
was held that an illegality committed in the course  of  investigation  does
not affect the competence and jurisdiction of the court for trial and  where
cognizance of the case has in fact been taken and the case has proceeded  to
termination of the  invalidity  of  the  preceding  investigation  does  not
vitiate the result unless miscarriage of justice has  been  caused  thereby.
When any breach of the mandatory provisions  relating  to  investigation  is
brought to the notice of the court at an early stage of the trial the  Court
will have to consider the nature  and  extent  of  the  violation  and  pass
appropriate orders for such reinvestigation as may be called for, wholly  or
partly, and by such officer as it considers appropriate  with  reference  to
the requirements of Section 5-A of the Prevention of Corruption  Act,  1952.
This decision was followed in Munna Lal v. State of U.P where  the  decision
in  State  of  Madhya  Pradesh  v.  Mubarak  Ali,  AIR  1959  SC   707   was
distinguished. The same view was taken in the State of Andhra Pradesh v.  M.
Venugopal, 1964 (3) SCR 742 and more recently in Khandu Sonu Dhobi v.  State
of  Maharashtra  (supra).  The  decisions  of  the  Calcutta,   Punjab   and
Saurashtra High Courts  relied  upon  by  Mr  Anthony  deal  with  different
points: in any event to the extent they  contain  any  observations  against
the view  expressed  by  this  Court  in  the  decisions  just  cited  those
observations cannot be considered good law."

18.    As  noticed,  on  the  basis  of  the  permission  accorded  by   the
Magistrate, the Sub-Inspector, CBI  proceeded  with  the  investigation  and
finally submitted charge-sheet.  It was  only  after  that,  said  order  of
Magistrate was questioned by the Respondent by filing  a  criminal  petition
in the High Court.  The learned Single Judge,  appreciating  the  submission
made by the learned counsel, held  that  since  the  special  court  without
assigning any reason permitted Sub-Inspector of Police  to  investigate  the
matter, the order is  not  in  accordance  with  law  and  disposed  of  the
petition giving liberty to the prosecution to file a fresh  petition  before
the court seeking permission to get the matter investigated by  a  competent
officer.

19.    As discussed earlier, the High Court erred in  overlooking  the  gist
of order of Special  Judge  permitting  the  Sub-Inspector  to  investigate.
Further, having regard to the fact that no case of prejudice or  miscarriage
of justice by reason of investigation by  the  Sub-Inspector  of  Police  is
made out, the order of the High Court cannot be sustained in law.   For  the
reasons stated above, these appeals are allowed and the order passed by  the
High Court is set aside.  The concerned Court  shall  now  act  with  utmost
expedition.

                                        ..................................J.
                                                              [ M.Y. Eqbal ]


                                         ..................................J
                                                         [Shiva Kirti Singh]
New Delhi
December 01, 2014