Full Judgment Text
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PETITIONER:
SHEO NANDAN PASWAN
Vs.
RESPONDENT:
STATE OF BIHAR & ORS.
DATE OF JUDGMENT20/12/1986
BENCH:
BHAGWATI, P.N. (CJ)
BENCH:
BHAGWATI, P.N. (CJ)
VENKATARAMIAH, E.S. (J)
KHALID, V. (J)
OZA, G.L. (J)
NATRAJAN, S. (J)
CITATION:
1987 AIR 877 1987 SCR (1) 702
1987 SCC (1) 288 JT 1986 1132
1986 SCALE (2)1099
CITATOR INFO :
R 1987 SC 863 (31)
R 1988 SC1531 (191)
RF 1992 SC 248 (44)
RF 1992 SC 604 (114,140)
ACT:
Review of judgments or orders by the Supreme
Court--Constitution of India, 1950, Article-137 read with
Rule 1 of order XL of the Supreme Court Rules, 1966--Nature
of the power of Review by the Supreme Court--Whether the
Supreme Court could interfere with the granting consent
orders for "Nolles Prosequi" against the accused, when the
orders of the Special Judge, of the High Court in Revision,
and of the majority of the Judges of the Supreme Court in an
appeal by special leave, were in favour of the accused.
Review order is to the effect "the review petition
should be admitted and the appeal should be reheard immedi-
ately after the decision of Nandini Satpathi’s case Crl.
Appeals 48 and 49 referred to a Constitution Bench"--Meaning
and consequence of the order admitting the Review
Petition--Whether the judgment sought to be reviewed was set
aside or not.
Code of Criminal Procedure, 1973, section 321--Withdraw-
al from the Prosecution--Scope and construction of the
provisions of the section as to the power of the Public
Prosecutor to withdraw and the power to grant consent to
such withdrawal by the Magistrate--Whether on the face of
the record, there was any error apparent--Whether the prin-
ciple of administrative law be invoked for construing the
section.
Locus standi of a complainant in a criminal proceedings
to file a revision before the High Court and an appeal by
special leave before the Supreme Court under Article 136 of
the Constitution, against an order granting consent to
withdraw the criminal case.
"Discharge" of an accused, consequent to the consent
passed by the Magistrate under section 321 and "Discharge"
of an accused made under section 227 or 239 of the Code of
Criminal Procedure.
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HEADNOTE:
Under Article 137 of the Constitution of India The
Supreme Court shall have power to review any judgment pro-
nounced or order
703
made by it, subject to the provisions of any law made by
Parliament or any rules made under Article 145. The Supreme
Court, in exercise of the powers conferred by Article 145 of
the Constitution and all other powers enabling it and with
the approval of the President made the "Supreme Court’Rules
1966". Under Rule I of Order XL thereof, the "Court may
review its judgment or order but no application for review
will he entertained ...... in a criminal proceeding except
on the ground of an error apparent on the face of the re-
cord."
Patna Urban Cooperative Banks was registered in May 1970
and it commenced its banking business with Nawal Kishore
Sinha as its Chairman, K.P. Gupta as its Honorary Secretary,
M.A. Hydary as Manager and A.K. Singh as loan clerk. Dr.
Jagannath Misra who was then a Member of the Legislative
Council was closely associated with Nawal Kishore Sinha and
helped the Cooperative Bank and Nawal Kishore Sinha in
diverse ways in connection with the affairs of the Bank and
assisted in mobilisation of the resources for the Bank.
There were some irregularities in the affairs of the Bank.
The then Chief Minister Shri Abdul Ghafoor ordered the
prosecution of the officers and staff of the Bank including
its Honorary Secretary Shri K.P. Gupta, Manager, M.A. Hai-
dary and the loan clerk. However, this was not done. On
11.4.1975 Shri Abdul Ghafoor was replaced by Dr. Jagannath
Misra as Chief Minister. On May 16, 1975 he passed an order
that only stern action should he taken for realisation of
loans since on the perusal of the file it appeared there was
no allegation of defalcation against the Chairman and mem-
bers of the Board. This date is alleged to have been later
changed to May 14, 1975 by a fresh order. As per the revised
order directions for restoration of normalcy and holding of
Annual General Meeting "of the bank was made. On 15.4.1976
the Reserve Bank cancelled the banking licence issued to the
Bank and a liquidator was appointed. Consequent to the
report of the Estimates Committee and the debate in the
Assembly, Dr. Jagannath Misra directed, on 4.8.76 the prose-
cution against those involved in the defalcation. Thus 23
criminal cases were filed against the office bearers and
loanees but Nawal Kishore Sinha was excluded from being
arraigned as an accused. In June 1977 there was a change of
Ministry at the Centre. In June 1977 the Government headed
by Dr. Jagannath Misra was replaced by the Government headed
by Sri Karpoori Thakur.
As a sequel to the memorandums submitted by the Patna
Secretariat Non-gazetted Employees’ Association to the now
Chief Minister on 9.7.1977 requesting him to enquire into
allegations against Dr. Jagannath Misra, after a detailed
procedure and obtaining requisite
704
sanction of the Governor, a criminal case was instituted by
the vigilance Department against Dr. Jagannath Misra and
others.
The charge sheet filed by the State of Bihar against the
respondents on 19th February, 1979, was for offences under
sections 420/466/ 471/109/120-B of Indian Penal Code and
under Sections 5(1) (a), S(a) (b) & 5(1) (d) read with
Section 5(2) of the Prevention of Corruption Act, 1947. The
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charge against Dr. Jagannath Misra was that he, who at all
material times, was either a Minister or the Chief Minister
of Bihar abusing his position as a Public servant, in con-
spiracy with the other accused, sought to interfere with the
criminal prosecution and surcharge proceedings against Nawai
Kishore Sinha and others with a view to obtain to himself
and to the other respondents pecuniary advantage to the
detriment of Patna Urban Cooperative Bank. The Chief Judi-
cial Magistrate took cognizance of the case on 29.7.1979.
There was a change of ministry in Bihar in June 1980 and
the second respondent became the Chief Minister again. A
policy decision was taken on 10.6.1980, that criminal cases
launched out of political vendetta and cases relating to
political agitation be withdrawn. On 24.2.1981 the Govern-
ment appointed Shri L.P. Sinha as a Special Public prosecu-
tor. On 25.2.1981, the secretary to the Government of Bihar
wrote a letter to the District Magistrate informing him of
the policy decision taken by the Government,to withdraw from
prosecution of two vigilance cases including the case with
which the Court is concerned. He was requested to take steps
for the withdrawal of the case. On I7th June, 1981, Shri
Sinha made an application under s.32I of the Cr.P.C. to the
Special Judge seeking permission to withdraw from the prose-
cution of respondent Nos. 2, 3 and 4 on four grounds; (a)
Lack of prospect of successful prosecution in the light of
the evidence, (b) Implication of the persons as a result of
political and personal vendetta; (c) Inexpediency of the
prosecution for the reasons of the State and public policy
and (d) Adverse effects that the continuance of the prosecu-
tion will bring on public interest in the light of the
changed situation. The learned Special Judge gave consent
sought, by his order dated 20th June, 1981. The appellant,
thereupon, filed a criminal Revision Application No. 874/81
against the order permitting withdrawal of the prosecution.
The said application was dismissed in limine by the High
Court by an order dated 14.9.1981. The appellant therefore
preferred Crl. Appeal No. 241/82 by special leave to this
Court. In two well reasoned concurring judgments, Baharul
Islam J and R.B. Misra J. dismissed the appeal by their
judgments dated December 16, 1982 and by an equally reasoned
judgment, Tulzapurkar J. dissented from the
705
main judgement and allowed the appeal. (See Sheonandan
Paswan v. State of Bihar & 0rs.,[(1983) 2 SCR 61] Baharul
Islam J. demited office on 13.1. 1983. An application was
filed on 17.1. 1983 to review the judgment under Article 137
of the Constitution read with Order XI of the Supreme Court
Rules. On 22.8.1983, the matter was heard in open court by a
Bench consisting of Tulzapurkar J., A.N. Sen J. and R.B.
Misra J, and A.N. Sen J. passed an order admitting the
Review Petition without disclosing any reason therefor and
directed the rehearing of the petition immediately after the
decision in Mohd. Mumtaz v. Smt. Nandini Satpathy [1983] 4
SCC 104, which was referred already to a Constitutional
Bench of five Judges. Hence the rehearing of the case to
review the two concurrent judgments.
Dismissing the appeal, in accordance with the opinion of
the majority, the Court, (Per Venkataramiah J.) (Majority
view)
Held: 1.1 Merely because a court discharges or acquits
an accused arraigned before it, the court cannot be consid-
ered to have compromised with the crime. True, corruption,
particularly at high places should be put down with a heavy
hand. But, the passion to do so should not overtake reason.
The Court always acts on the material before it and if it
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finds that the material is not sufficient to connect the
accused with the crime, it has to discharge or acquit him,
as the case may be, notwithstanding the fact that the crime
complained of is a grave one. Similarly if the case has been
withdrawn by the Public Prosecutor for good reason with the
consent of the Court, Supreme Court should be slow to inter-
fere with the order of withdrawal. In either case, where the
Special Judge had rejected the application for withdrawal
and the High Court had affirmed that order, and where the
special judge had permitted the withdrawal but the High
Court had reversed that order, the Supreme Court may not
have interfered with the orders of the High Court under
Article 136 of the Constitution. But this is a case where
the Special Judge had permitted the withdrawal of the prose-
cution, and the said order of withdrawal has been affirmed
by the High Court as well as by the majority judgment pro-
nounced by Supreme Court earlier. Interference by the Su-
preme Court on review must only be on strong and compelling
reasons. [766D-H]
1.2 When the earlier decisions of the Supreme Court are
allowed to remain in tact, there is no justification to
reverse the majority judgments of Baharul Islam and R.B.
Misra JJ., reported in [1983] 2 SCR 61 by which the appeal
had already been dismissed. The reversal of the earlier
judgment of Supreme Court by the process of Review strikes
at
706
the finality of judgments of Supreme Court and would amount
to the abuse of the power of review vested in Supreme Court,
particularly in a criminal case. This case which was admit-
ted solely on the ground that Nandini Satpathy’s case had
been subsequently referred to a larger Bench to review the
earlier decision cannot be converted into an appeal against
the earlier decision of Supreme Court. [774A-C]
R.K. Jain etc. v. State through Special Police Estab-
lishment and Ors. etc., [1980] 3 SCR 982 and State of Bihar
v. Ram Naresh Pandey, [1957] SCR 279, referred to.
2.1 Section 321 of the Code of Criminal Procedure cannot
be construed in the light of the principles of Administra-
tive law. The legal position expounded by the Supreme Court
in R.K. Jain’s case and in Ram Naresh Pandey’s, case is
correct. If any change in the law is needed it is for Par-
liament to make necessary amendments to section 321 of the
Code of the Criminal Procedure, 1973, which has remained so
despite the judgment of the Supreme Court in Pandey’s case
rendered in 3957. [773D-E]
2.2 The judgment of a Public Prosecutor under section
321 of the Code of Criminal Procedure, 1973 cannot be light-
ly interfered with unless the Court comes to the conclusion
that he has not applied his mind or that his decision is not
bona fide. A person may have been accused of several other
misdeeds, he may have been an anthema to a section of the
public media or he may be an unreliable politician. But
these circumstances should not enter into the decision of
the Court while dealing with a criminal charge against him
which must be based only on relevant material. [773B-C ]
2.3 In the circumstances of this case, it cannot be said
that the Public Prosecutor had not applied his mind to the
case or had conducted himself in an improper way. If in the
light of the material before him the Public Prosecutor has
taken the view that there was no prospect of securing a
conviction of the accused it cannot be said that his view is
an unreasonable one. The Public Prosecutor is not a Persecu-
tor. He is the representative not of an ordinary party to a
controversy, but of a sovereignty whose obligation to govern
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impartially is as compelling as its obligation to govern at
all, and whose interest, therefore, in a criminal prosecu-
tion is not that it shall win a case, but that justice shall
be done. As such he is in a peculiar and very definite sense
the servant of the land, the two fold aim of which is that
guilt shall not escape or innocence suffer. He may prosecute
with earnest and vigour indeed, he
707
should do so. But while he may strike hard blows, he is not
at liberty to strike foul ones. It is as much his duty to
refrain from improper methods calculated to produce a wrong-
ful conviction as it is to use every legitimate one to bring
about a just one. [772E-H]
Berger v. United States, 295 US 78, quoted with approval.
2.4 Further the questions involved in this case are:
whether Dr. Jagannath Misra has been a privy to the misdeeds
committed in the Patna Urban Co-operative Bank; whether he
and his co-accused should be prosecuted for the offences of
conspiracy, bribery etc., and whether the Public Prosecutor
had grievously erred in applying for the withdrawal of the
case. All the other Judges who have dealt with the case on
merits from the Special Judge onwards, except Tulzapurkar J.
have opined that the permission was properly given for
withdrawal. In the circumstances, it is difficult to take a
different view. [770G-H; 771A-B]
The three circumstances put up against the accused in
this case are (i) that Jiwanand Jha had credited Rs. 10,000
and Rs. 3000 on 27.12.1973 and on 1.4.1974 respectively in
the Savings Bank account of Dr. Jagannath Misra; (ii) that
there was ante-dating of the order passed by Dr. Jagannath
Misra on 14.5.1975; and (iii) that there was a second con-
fessional statement of Hydary which supported the prosecu-
tion. As regards the two items of bribe, it has not been
shown by any extract of bank account that the said two sams
came from the Patna Urban Cooperative Bank. If that was so
there would have been entries in the Bank accounts. Mere
crediting of the two sums, without any other reliable evi-
dence, in a bank account by a political ally or a friend
does not by itself show that the sums were either bribe
amounts or any official favour had been shown. This fact by
itself is not conclusive about the guilt of the accused. The
passing of the two orders one on 15.6.1975 on the note sheet
and the other on buff paper which is dated 14.5.1975 cannot
be faulted on account of the explanation that it was the
practice in the Bihar Secretariat that whenever an order is
changed it is done by writing the later order on a buff-
sheet and pasting it on the earlier order. It is not also
shown by the prosecution that any action had been taken
pursuant to the order dated 16.5.1975 by any of the depart-
mental authorities. If any action had been taken it would
have been a matter of record readily available for produc-
tion. No such record is produced before Supreme Court.
Hence’ it is a mere surmise to say that any such action was
sought to be nullified, particularly when there was no
acceptable evidence at all on the communication of the order
dated 16.5.1975 to any departmental authorities. [769F-G;
770D-G ]
708
Per Khalid J. (on behalf of himself and on behalf of S.
Natarajan J.)
1.1 Admitting a review petition is not, the same thing
as setting aside the order sought to be reviewed. Order 47,
Rule 1 C.P.C. deals with review in civil matters, Article
137 of the Constitution is a special power with the Supreme
Court to review any judgment pronounced or order made by it.
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An order passed in a criminal case can be reviewed and set
aside only if there are errors apparent on the record. In
this case, one of the Judges who was a party to the order to
review (R.B. Misra J) had earlier dismissed the appeal with
convicting reasons. If the judgment was set aside by the
order passed in the review petition, the learned Judge would
definitely have given his own reasons for doing so by a
separate order. This has not been done. All that the order
says is that the review petition had been admitted. The
direction to re-hear the appeal, therefore can only be to
ascertain reasons to see whether the judgment need be set
aside. [776C-G]
2.1 There is no error apparent on the face of the record
in the judgment reported as Sheonandan Paswan v. State of
Bihar & Ors., [1983] 2 SCR 61. [776G-H]
2.2 All the three judges who gave the earlier judgment
in this case have correctly declined to accept the plea that
Shri Sinha was not a competent Public Prosecutor since
Datt’s appointment has not been cancelled. [780B-C]
3.1 Section 321 needs three requisite to make an order
under it valid; (1) The application should be filed by a
public prosecutor or Assistant Public Prosecutor who is
competent to make an application for withdrawal; (2) he must
be in charge of the case; (3) the application should get the
consent of the court before which the case is pending. All
the three requisites are satisfied here. [780D-E]
3.2 In the absence of any allegation of mala fide
against the public prosecutor or of bias against the Special
Judge the Public Prosecutor should normally be credited with
fairness in exercise of his power under s.321. Equally, in
the absence of a challenge in the revision petition before
the High Court to the order of the Special Judge giving
consent, it has to be assumed that he has perused the rele-
vant records before passing the consent order. [781 C-E]
3.3 Section 321 gives the public prosecutor the power
for withdrawal of any case at any stage before judgment is
pronounced. This
709
pre-supposes the fact that the entire evidence may have been
adduced in the case, before the application is made. When an
application under s.32I Cr. P.C. is made, it is not neces-
sary for the court to assess the evidence to discover wheth-
er the case would end in conviction or acquittal. To contend
that the court when it exercises its limited power of giving
consent under s.32I has to assess the evidence and find out
whether the case would end in acquittal or conviction, would
be to re-write s.321 Cr.P.C. and would be to concede to the
court a power which the scheme of s.321 does not contem-
plate. [781 F-H]
3.4 The acquittal or discharge order under s.321 are not
the same as the normal final orders in criminal cases. The
conclusion will not be hacked by a detailed discussion of
the evidence in the case of acquittal or absence of prima
facie case or groundlessness in the case of discharge. All
that the court has to see is whether the application is made
in good faith, in the interest of public policy and justice
and not to thwart or stifle the process of law. The court,
after considering these facets of the case, will have to see
whether the application suffers from such improprieties or
illegalities as to cause manifest injustice if consent is
given. On a reading of the application for withdrawal, the
order of consent and the other attendant circumstances, it
must be held that the application for withdrawal and the
order giving consent were proper and strictly within the
confines of section 321 Cr.P.C. [781H; 782A-C]
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3.5 While construing s.321, it is necessary to bear in
mind the wide phraseology used in it, the scheme behind it
and its field of operation. True, it does not give any
guideline regarding the grounds on which an application for
withdrawal can be made. But since it was enacted with a
specific purpose, it would be doing violence to its language
and contents by importing into the section words which are
not there or by restricting its operation by fetters in the
form of conditions and provisos. [782C-D]
3.6 While conferring powers upon the Subordinate courts
under s.321 of the Code, the Legislature had only intended
that the court should perform a supervisory function and not
an adjudicatory function in the legal sense of the term.
Section 321 clothes the public prosecutor to withdraw from
the prosecution of any person, accused of an offence both
when no evidence is taken or even if entire evidence has
been taken. The outer limit for the exercise of this power
is "at any time before the judgment is pronounced". The
initiative is that of the Public Prosecutor and what the
court has to do’ only to give its consent and not to deter-
mine any matter judicially. The Judicial function implicit
in the
710
exercise of the judicial discretion for granting the consent
would normally mean that the court has to satisfy itself
that the executive function of the Public Prosecutor has not
been improperly exercised, or that it is not an attempt to
interfere with the normal course of justice for illegitimate
reasons or purposes. [484A-B; C-D]
3.7 The courts’ function is to give consent. It is not
obligatory on the part of the court to record reasons before
consent is given. However, consent of the court is not a
matter of course. When the Public Prosecutor makes the
application for withdrawal after taking into consideration
all the materials before him, the Court exercises its judi-
cial discretion by considering such materials and on such
consideration either gives consent or declines consent. If
on a reading of the order giving consent a higher court is
satisfied that such consent was given on an overall consid-
eration of the materials available, the order giving consent
has necessarily to be upheld. [484D-G]
3.8 The order under section 321 is pot appealable but
only revisable under section 397 of the Code of Criminal
Procedure. While considering the legality, propriety or the
correctness of a finding or a conclusion, normally, the
revising court does not dwell at length into the facts and
evidence of the case. The Court, in revision, considers the
materials only to satisfy itself about the correctness,
legality and propriety of the findings, sentence or order
and refrains from substituting an order passed under s.397
appeal comes to the Supreme Court by special leave under
Article 136 of the Constitution of India. [789B-C]
It has been the declared policy of the Supreme Court not
to embark upon a roving enquiry into the facts and evidence
of cases like this or even an order against discharge. The
Supreme Court will not allow itself to be converted into a
court of facts and evidence. The Supreme Court seldom goes
into evidence and facts. That is as it should be. Any depar-
ture from this salutary self imposed restraint is not a
healthy practice. As an apex Court, any observation on
merits or on facts and evidence of a case which has to go
back to the courts below will seriously prejudice the party
affected and it should be the policy of the court not to
tread upon this prohibited ground and invite unsavory but
justifiable criticism. Supreme Court cannot assess the
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evidence to find out whether there is a case for acquittal
or conviction and cannot convert itself into a trial court.
Nor can this court order a retrial and examination of hun-
dred witnesses to find out whether the case would end in
acquittal or conviction. [789D-G]
711
3.9 Section 321 Crl. P.C. is virtually a step by way of
composition of he offence by the State. The State is the
master of the litigation in criminal cases. By the exercise
of functions under s.321 the accountability of the concerned
person or persons does not disappear. A private complaint
can still be filed if a party is aggrieved by the withdrawal
of the prosecution but running the possible risk of a suit
of malicious prosecution if the complaint is bereft of any
basis. [789G-H; 790A]
3.10 When the Magistrate states in his order that he has
considered the materials, it is not proper for the court not
to accept that statement. The proper thing to do is to hold
that Magistrate gave consent on objective consideration of
the relevant aspects of the case. It would be acting against
the mandate s.321 to find fault with the Magistrate in such
cases, unless the order discloses that the Magistrate has
failed to consider whether the application is made in good
faith, in the interest of public policy and justice and not
to thwart or strifle the process of law. The application for
withdrawal by the Public Prosecutor has been made in good
faith after careful consideration of the materials placed
before him and the order of consent given by the Magistrate
was also after the consideration of various datails as
indicated above. It would be improper for the Court, keeping
in view the scheme of s.321, to embark upon a detailed
inquiry into the facts and evidence of the case or to direct
re-trial for that would be destructive of the object and
intent of the section. [792C-E; 793B-D]
State of Bihar v. Ram Naresh Pandey, [1957] SCR 279;
M.N. Sankaranarayanan Nair v.P.V. Balakrishnan & Ors.,
[1972]2 SCR 599; Bansi Lal v. Chandan Lal, AIR 1976 AC 370;
State of Orissa v. Chandrika Mohapatra & Ors., [1977] 1 SCR
335; Balwant Singh v. State of Bihar, [1978] 1 SCR 604;
Subhash Chander v. State, [1980] 2 SCR 44 and Rajendra kumar
Jain v. State, [1980] 3 SCR 982, referred to.
4.1 In this case the Supreme Court is called upon only
to consider the ambit and scope of s.321 Crl. P.C. and not
the truth or otherwise of the allegations against the re-
spondent No. 2. The appellant is admittedly a political
rival of respondent No.2. There is no love lost between
them. It is at the instance of such a highly interested
person that the Court is called upon to direct re-trial of
the case, setting aside the consent given by the Special
Judge. The second respondent is a leader of a political
party. He was a rival to the Chief Minister who followed him
after the 1977 at the time of institution of the case. In
1977, when the second respondent was the Chief Minister, a
warrant of arrest was issued
712
against Shri Karpoori Thakur for his arrest and detention.
It has been suggested that Shri Thakur had grudge against
the second respondent. Viewed against this background, and
on the unsatisfactory factual details of the case, accepting
the appeal and ordering retrial would not advance either the
interests of justice or public interest. [796B-E]
4.2 There were two confessional statements of Haidari in
this case one on 4.11.1976 and another on 24.1.1978. In the
former he did not implicate respondent No.2 but he did it in
the next one. The second statement at best is the confes-
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sional statement of a co-accused which normally will not
inspire confidence, in any court. It is also a statement
an accomplice turned approver and hence of a very little
evidentiary value. When Supreme Court exercises its juris-
diction while considering an order giving consent on an
application under s.321, consistent with the declared policy
of the court not to embark upon evidence, request for an
order for retrial on this legally weak and infirm evidence
should be rejected. [795A-E]
4.3 As to the accusation of forgery, taking the entire
evidence against the appellant it cannot be held that he has
committed forgery under s.463 or an offence under s.466.
Even though there is overwriting or pasting or interpolation
or change of digits, there is no evidence at all to show
that this paper went out of the Chief Minister’s office or
that any one was unduly favoured or that any one secured
undue advantage by use of such overwriting. [796A-B]
Per Bhagwati (on behalf of himself and G.L. Oza J.)
(Minority view). (Per contra)
1.1 The Review Bench did exercise the power of review
and set aside the order made by the Original Bench. When the
Review Bench used the expression "I ....... admit the
Review" and directed rehearing of the appeal, it must by
necessary implication be held to have allowed the Review
Petition and set aside the order of the Original Bench. The
true meaning and effect of the order of the Review Bench
cannot be allowed to be obfuscated by a slight ineptness of
the language used by the Review Bench. The substance of the
order must always be looked in to its apparent form. [737F-
H]
1.2 There can be no doubt that the Review Bench was not
legally bound to give reasons for the order made by it. The
apex Court being the final court against which there is no
further appeal, it is not under any legal compulsion to give
reasons for an order made by it. But
713
merely because there may be no legal compulsion on the apex
court to give reasons. It does not follow that the apex
court may dispose of cases without giving any reasons at
all. It would be eminently just and desirable on the part of
the apex court to give reasons for the orders made by it.
But when the apex court disposes of a Review Petition by
allowing it and setting aside the order sought to be re-
viewed on the ground of an error apparent on the face of
record, it would be desirable for the apex court not to give
reasons for allowing the Review Petition. Where the apex
court holds that there is an error apparent on the face of
the record and the order sought to be reviewed must there-
fore be set aside and the case must be reheard, it would
considerably prejudice the losing party if the apex court
were to give reasons for taking this view. If the Review
Bench of the Court were required to give reasons, the Review
Bench would have to discuss the case fully and elaborately
and expose what according to it constitutes an error in the
reasoning of the Original Bench and this would inevitably
result in pre-judgment of the case and prejudice is rehear-
ing. A reasoned order allowing a Review Petition and setting
aside the order sought to be reviewed would, even before the
reheating of the case, dictate the direction of the rehear-
ing and such direction, whether of binding or of persuasive
value, would conceivably in most cases adversely affect the
losing party at the rehearing of the case. Therefore, the
Review Bench, in the present case, could not be faulted for
not giving reasons for allowing the Review Petition and
directing rehearing of the appeal. [738B-G]
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2. It is now well settled law that a criminal proceeding
is not a proceeding for vindication of a private grievance
but it is a proceeding initiated for the purpose of punish-
ment to the offender in the interest of the society. It is
for maintaining stability and orderliness in the society
that certain acts are constituted offences and the right is
given to any citizen to set the machinery of the criminal
law in motion for the purpose of bringing the offender to
book. Locus standi of the complainant is a concept foreign
to criminal jurisprudence. Now if any citizen can lodge a
first information report or file a complaint and set the
machinery of the criminal law in motion and his locus standi
to do so cannot be questioned, a citizen who finds that a
prosecution for an offence against the society is being
wrongly withdrawn can oppose such withdrawal cannot oppose
such withdrawal. If he can be a complainant or initiator of
criminal prosecution, he should equally be entitled to
oppose prosecution which has already been initiated at his
instance. If the offence for which a prosecution is being
launched is an offence against the society and not merely an
individual wrong, any member of the society must have locus
to initiate a prosecution as also to resist
714
withdrawal of such prosecution, if initiated. Here in the
present case, the offences charged against Dr. Jagannath
Misra and others are offences of corruption, criminal breach
of trust etc. ’and therefore any person who is interested in
cleanliness of public administration and public morality
would be entitled to file a complaint; equally he would be
entitled to oppose the withdrawal of such prosecution, if it
is already instituted. [739C-H; 740A]
R.S. Nayak v. A.R. Antulay, [1984] 2 SCR 500, referred to
3.1.
It is undoubtedly true that the effect of withdrawal of
the prosecution against Dr. Jagannath Misra was that he
stood discharged in respect the offences for which he was
sought to be prosecuted but it was not an order of discharge
which was challanged by Sheonandan Paswan in the revision
application filed by him before the High Court but it was an
order granting consent for withdrawal of the prosecution
that was assailed by him. [740E-G]
3.2 The analogy of an order of discharge made under
section 227 or section 239 of the Code of Criminal Procedure
is not apposite because there the Sessions Judge or the
Magistrate, as the case may be, considers the entire materi-
al before him and then comes to the conclusion that there is
not sufficient ground or proceeding against the accused or
that the charge against the accused is groundless. But,
here, when the Magistrate makes an order granting consent to
withdrawal of the prosecution under s.321, it is a totally
different judicial exercise which he performs and it would
not therefore be right to say that if the High Court sets
aside the order of the Magistrate granting consent to with-
drawal from the prosecutor, the High Court would be really
setting aside an order of discharge made by the Magistrate.
What the High Court would be doing would be no more than
holding that the withdrawal from the prosecution should
proceed against the accused and ultimately if there is not
sufficient evidence or the charges are groundless, the
accused may still be discharged. Even the order of discharge
can be discharged by the High Court in revision if the High
Court is satisfied that the order passed by the Magistrate
is incorrect, illegal or improper or that the proceedings
resulting in the order of discharge suffer from any irregu-
larity. [740F-H; 741A-C]
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3.3 The revisional power exercised by the High Court
under s.397 is couched in words of widest amplitude and in
exercise of this power can satisfy itself as to the correct-
ness, legality propriety of any order passed by the Magis-
trate or as to the regularity of any proceedings of such
Magistrate. When the Supreme Court is hearing an appeal
715
against an order made by the High Court in the exercise of
its revisional power under s.397 it is the same revisional
power which the Supreme Court would be exercising and the
Supreme Court, therefore, certainly can interfere with the
order made by the Magistrate and confirmed by the High Court
if it is satisfied that the order is incorrect, illegal or
improper. In fact, in a case like the present where the
question is of purity and public administration at a time
when moral and ethical values are fast deteriorating and
there seems to be a crises of character in public life, the
Supreme Court should regard as its bounded duty-a duty owed
by it to the society-to examine carefully whenever it is
alleged that a prosecution for an offence of corruption or
criminal breach of trust by a person holding high public
office has been wrongly withdrawn and it should not matter
at all as to how many judges in the High Court or the lower
court have been party to the granting of such consent for
withdrawal. The mathematics of numbers cannot, therefore, be
invoked for the purpose of persuading the court not to
exercise its discretion under Article I36 of the Constitu-
tion. [741C-H]
4.1 It is a well-established proposition of law that a
criminal prosecution, if otherwise justifiable and based
upon adequate evidence does not become vitiated on account
of mala fides or political vendetta of the first informant
or the complainant. [742D-E]
State of Punjab v. Gurdial Singh, [1980] 1 SCR 1076, re-
ferred to.
4.2 The fact that the prosecution against Dr. Jagannath
Misra was initiated by the successor Government of Karpoori
Thakur after the former went out of power, by itself cannot
support the inference that the initiation of the prosecution
was actuated by political vendetta or mala fides because it
is quite possible that there might be material justifying
the initiation of prosecution against Dr. Jagannath Misra
and the successor Government might have legitimately felt
that there was a case for initiation of prosecution and that
is why the prosecution might have been initiated. Therefore,
the prosecution cannot be said to be vitiated on that ac-
count. [742G-H; 743A]
Krishna Ballabha Sahay and Ors. v. Commission of En-
quiry, [1969] 1 SCR 387 and P.V. Jagannatha Rao v. State of
Orissa, [1968] 3 SCR 789, referred to.
5.1 There is no provision of law which requires that no
prosecution should be launched against a former Chief Minis-
ter or a person holding high political office under the
earlier regime without first set-
716
ting up a Commission of Enquiry for enquiring into his
conduct. It cannot be said that if a prosecution is initiat-
ed without an inquiry being held by a Commission of Enquiry
set up for that purpose, the prosecution would be bad or
that on that ground alone the prosecution could be allowed
to be withdrawn. [743G-H; 744A]
5.2 In view of the tardy and slow moving criminal proc-
ess in India causing inordinate delay and availability of
adequate protection under different existing laws to the
accused, it would be perfectly legitimate for the successor
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government to initiate a prosecution of a former Chief
Minister or a person who has held high political office
under the earlier regime without first having an enquiry
made by a Commission of Enquiry, provided of course, the
investigation is fair and objective and there is sufficient
material to initiate such prosecution. [744A-D]
6. No unfettered or unrestricted power is conferred on
the Public prosecutor/Assistant Public Prosecutor under
section 321 of the Code to apply for withdrawal from the
Prosecution, but the said power must be a controlled or
guided power or else it will fail foul of Article 14 of the
Constitution- Section 321 is more or less similar to the
powers of the police under s. 173 of the Code of Criminal
Procedure. [746F-H]
The police has no absolute or unfettered discretion
whether to prosecute an accused or not to prosecute him. In
fact, in the constitutional scheme, conferment of such
absolute and uncanalised discretion would be violative of
the equality clause of the Constitution. The Magistrate is
therefore given the power to structure and control the
discretion of the police. The discretion of the police to
prosecute is thus’ ’combined and confined" and, subject to
appeal or revision, and the Magistrate is made the final
arbiter on this question. The Legislature has in its wisdom
taken the view it would be safer not to vest absolute dis-
cretion to prosecute in the police which is an Executive arm
of the government but to subject it to the control of the
judicial organ of the State. The same scheme has been fol-
lowed by the Lesiglature while conferring power on the
Public Prosecutor to withdraw from the prosecution. This
power can be exercised only with the consent of the court so
that the court can ensure that the power is not abused or
misused or exercised in an arbitrary or fanciful manner.
Once the charge-sheet is filed and the prosecution is initi-
ated, it is not left to the sweet-will of the State or the
Public Prosecutor to withdraw from the prosecution. Once the
prosecution is launched, its relentless course cannot be
halted except on sound considerations germane to public
justice. The Public Prosecutor cannot therefore withdraw
from the prosecution unless the Court
717
before which the prosecution is pending gives its consent
for such withdrawal. This is a provision calculated to
ensure non-arbitrarinesS on the part of the Public Prosecu-
tor and compliance with the equality clause of the Constitu-
tion. [748D-H]
H.S. Bains v. State, AIR 1980 SC 1883; Subhash Chander
v. State & Ors., [1980] 2 SCR 44; M.N. Sankaranarayanan Nair
v. P.N. Balakrishnan & Ors., [1972] 2 SCR 599; and State of
Orissa. v. C. Mohapatra, [1977] 1 SCR 385, referred to.
7.1 The position in law in regard to the degree of
autonomy enjoyed by the Public Prosecutor vis-a-vis the
government in filling an application for withdrawal of the
prosecution is rather confused. Now there can be no doubt
that prosecution of an offender who is alleged to have
committed an offence is primarily the responsibility of the
Executive. It is the Executive which is vested with the
power to file a chargesheet and initiate a prosecution. This
power is conferred on the Executive with a view to protect-
ing the society against offenders who disturb the peace and
tranquility of the society by committing offences. Of course
it is left to the court to decide whether to take cognizance
of the offences set out in the charge-sheet but the filing
of the charge-sheet and initiation of the prosecution is
solely within the responsibility of the Executive. It is the
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State through the investigating authorities which files a
charge-sheet and initiate the prosecution and the Public
Prosecutor is essentially counsel for the State for conduct-
ing the prosecution on behalf of the State. The Public
Prosecutor is an officer of the court, as indeed every
advocate practising before the court is, and he owes an
obligation to the court to be fair and just: he must not
introduce any person interest in the prosecution nor must he
be anxious to secure conviction at any cost. He must present
the case on behalf of the prosecution fairly and objective-
ly. He is bound to assist the court with his fairly consid-
ered view and the fair exercise of his intention. But at the
same time he conducts the prosecution on behalf of the
Central Government or the State Government, as the case may
be, and he is an advocate acting on behalf on the Central
Government or the State Government which has launched the
prosecution. There is nothing wrong if the government takes
a decision to withdraw from the prosecution and communicate
such direction to the Public Prosecutor. The Public Prosecu-
tor, would, inter alia, consider the grounds on which the
government has taken the decision to withdraw from the
prosecution and if he is satisfied that those grounds are
legitimate, he may file an application for withdrawal from
the prosecution. If on the other hand he takes the view that
the grounds which have been given by the government are not
718
legitimate he has two options available to him. He may
inform the government that in his opinion, the grounds which
have weighed with the government are not valid and that he
should be relieved from the case and if this request of his
is not granted he may tender his resignation or else, he may
make an application for withdrawal from the prosecution as
directed by the government and at the hearing of the appli-
cation he may offer his considered view to the court that
the application is not sustainable on grounds set out by him
and leave it to the court to reject the application. There
is nothing wrong in the Public Prosecutor being advised or
directed by the government to file an application for with-
drawal from the prosecution and the application for with-
drawal made by him pursuant to such direction or advice is
not necessarily vitiated. The Public Prosecutor can of
course come to his own independent decision that the prose-
cution should be withdrawn but ordinarily if he is wise and
sensible person he will not apply for withdrawal without
consulting the government because it is the government which
has launched the prosecution and is prosecuting the accused.
Theoretically of course, he can make an application for
withdrawal from the prosecution without consulting the
government and he cannot be accused of any illegality for
doing so and the court may give its consent for such with-
drawal but in that event the Public Prosecutor would render
the risk of incurring the displeasure of the Government
which has appointed him. If the Public Prosecutor seeks the
permission of the government for withdrawal from the prose-
cution and the government grants such permission to him and
on the basis of such permission he applies for withdrawal
the application cannot be said to be vitiated. The proviso
to s.321 in fact contemplates in so many terms that in
certain categories of offences the Public Prosecutor ap-
pointed by the State Government cannot move the court for
its consent to withdraw from the prosecution without the
permission of the Central Government. There is no danger of
abuse or misuse of power by the Government inherent in this
process because there are two principal safeguards against
any such abuse or misuse of power by the government: one is
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that an application must be based on grounds which advance
public justice and the other is that there can be no with-
drawal without the consent of the Court. [755C-H; 756A-H;
757A-F]
State of Bihar v. Ram Naresh Pandey, [1957] SCR 279;
Balwant Singh v. State of Bihar, [1978] 1 SCR 604; M.N.
Sankaranarayanan Nair v. P.V. Balakrishnan & Ors., [1972] 2
SCR 599;.State of Orissa, v. C. Mohapatra, [1977] 1 SCR 335
and R.K. Jain v. State, [1980] 3 SCR 982, referred to.
7.2 The Public Prosecutor cannot maintain an application for
719
withdrawal from the prosecution on the ground that the
government does not want to produce evidence and proceed
with the prosecution against the accused or that the govern-
ment considers that it is not expedient to proceed with the
prosecution. The Public Prosecutor has to make out some
ground which would advance or further the cause of public
justice. If the Public Prosecutor is able to show that he
may not be able to produce sufficient evidence to sustain
the charge, an application for withdrawal from the prosecu-
tion may be legitimately made by. him. [758H; 759A-B]
7.3 However, where a charge has been framed by the court
either under s.228 or s.240 of the Code of Criminal. Proce-
dure, 1973 it would not be open to the Public Prosecutor to
apply for withdrawal from the prosecution on the ground of
insufficiency of evidence in support of the prosecution. The
reason is that in both these cases the Court applies its
mind to the material consisting of the police report and the
documents sent with it under s.173 and comes to a conclusion
that a prima facie case has been made out against the ac-
cused and the charge should therefore be framed. When the
court has come to this conclusion after full consideration
and framed a charge, the court cannot be persuaded on the
same material to hold that there is not sufficient evidence
to sustain the prosecution. The Public Prosecutor cannot be
permitted to make a volte face on the basis of the same
material. To do so would be mockery of justice and it would
shake the confidence of the court in the purity and integri-
ty of the administration of justice. It is, therefore, clear
that though the prosecution can be withdrawn at any stage,
even after the framing of the charge, it would not be compe-
tent to the Public Prosecutor once the charge is framed, to
apply for withdrawal of the prosecution on the ground that
the same material which was before the court when it framed
the charge is not sufficient to sustain the prosecution. Of
course, if some material has subsequently come to light
which throws doubt on the veracity of the prosecution case
the Public Prosecutor can certainly apply for withdrawal on
the ground that the prosecution is not well-founded. It may
also happen in the meanwhile a key witness may have died or
some important evidence may have become unavailable or some
such thing may have happened in that event, the Public
Prosecutor may legitimately feel that it will not be possi-
ble to sustain the prosecution in the absence of such evi-
dence and he may apply for withdrawal from the prosecution.
But on the same material without anything more, the Public
Prosecutor cannot apply for withdrawal from the prosecution
after the charge is framed. To allow him to do so would
impair the faith of the people in the purity and integrity
of the judicial process. [759C-H; 760A-E]
720
Bansi Lal v. Chandi Lal, AIR 1976 SC 370, referred to.
7.4 Further while exercising its function under s.239 is
to consider the police report and the document sent along
with it as also any statement made by the accused if the
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court chooses to examine him. And if the court finds that
there is no prima facie case against the accused the court
discharges him. But that is precisely what the court is
called upon to do when an application for withdrawal from
the prosecution is made by the public prosecutor on the
ground that there is insufficient or no evidence to support
the prosecution- There also the court would have to consider
the material placed before it on behalf of the prosecution
for the purpose of deciding whether the ground urged by the
public prosecutor for withdrawal of the prosecution is
justified or not and this material would he the same as the
material before the court while discharging its function
under s.239. If the court while considering an application
for withdrawal on the ground of insufficiency or absence of
evidence to support the prosecution has to scrutinise the
material for the purpose of deciding whether there is in
fact insufficient evidence or no evidence at all in support
of the prosecution, the court might as well engage itself in
this exercise while considering under s.239 whether the
accused shall he discharged or a charge shall he framed
against him. It is an identical exercise which the court
will he performing whether the court acts under s.239 or
under s.321. If that he so, in a warrant case instituted on
a police report the public prosecutor should not he entitled
to make an application for withdrawal from the prosecution
on the ground that there is insufficient or no evidence in
support of the prosecution. The court will have consider the
same issue under s.239 and it will most certainly further or
advance the case of public justice if the court examines the
issue under s.239 and gives its reasons for discharging the
accused after a judicial consideration of the material
before it, rather than allow the prosecution to he withdrawn
by the Public Prosecutor. When the prosecution is allowed to
he withdrawn there is always an uneasy feeling in the public
mind that the case has not been allowed to be agitated
before the court and the court has not given a judicial
verdict. But if on the other hand, the court examines the
material and discharges the accused under s.239 it will
always carry greater conviction with the people because
instead of the prosecution being withdrawn and taken out of
the ken of judicial scrutiny the judicial verdict based on
assessment and evaluation of the material before the court
will always inspire greater confidence- Since the guiding
consideration in all these cases is the imperative of public
justice and it is absolutely essential that justice must not
only he done but also appear to be done. Hence in a warrant
case instituted on a police report--which the
721
present case against Dr. Jagannath Misra and others admit-
tedly is-it should not be a legitimate ground for the public
prosecutor to urge in support of the application for with-
drawal that there is insufficient or no evidence in support
of the prosecution. The court in such a case should be left
to decide under s.239 whether the accused should be dis-
charged or a charge should be framed against him. [761A-H;
762A-B]
7.5 Ultimately every offence has a social or economic
cause behind it and if the State feels that the elimination
or eradication of the social or economic cause of the crime
would be better served by not proceeding with the prosecu-
tion, the State should clearly be at liberty to withdraw
from the prosecution. Though in this area no hard and fast
rule can be laid down nor can any categories of cases be
defined in which an application for withdrawal of the prose-
cution could legitimately be made. It must ultimately depend
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on the facts and circumstances of each case in the light of
what is necessary in order to promote the ends of justice.
[762C-D; H; 763A-B]
7.6 The Court, while considering whether to grant con-
sent or not, must not accept the ipse dixit of the public
prosecutor and content itself by merely examining whether
the public prosecutor has applied an independent mind but
the court must satisfy itself not only that the grounds are
germane or relevant to advancement of public justice but
also whether the grounds in fact are satisfactorily estab-
lished. The ultimate test which must be applied by the court
in order to determine the validity of the grounds in a
particular case is that the requirement of public justice
outweighs the legal justice of that case so that withdrawal
from the prosecution could be permitted in the larger inter-
est of public justice. The imperative of public justice
provides the only relevant consideration for determining
whether consent should be granted or not. It is not possible
to provide an exclusive definition of what may be regarded
as failing within the imperative of public justice in a
straitjacket formula. Every case must depend on its peculiar
facts and circumstances because there may be a myriad situa-
tion where this question may have to be considered by the
Court. [763G-H; 764A-D]
8. Applying these principles to the facts of the present
case, it is clear, that the court of the Chief Judicial
Magistrate Patna as also the High Court were clearly in
error in granting consent to the withdrawal from the prose-
cution against Dr. Jagannath Misra and others. There are two
very strong and cogent reasons why consent to the withdrawal
of the prosecution must be refused. In the first place, the
learned Chief Judicial Magistrate could have considered
under s.239 whether the
722
material placed before him was sufficient to make out a
prima facie case against Dr. Jagannath Misra and the other
accused so that if the learned Chief Judicial Magistrate
came to the conclusion on the basis of such material that
the charge against Dr. Jagannath Misra and the other accused
was groundless, he would be bound to discharge them for
reasons to be recorded by him in writing. There is no reason
why in these circumstances the public prosecutor should be
allowed to withdraw from the prosecution under s.321. The
same exercise could be performed by the learned Chief Judi-
cial Magistrate by acting under s.239. Moreover, in the
present case, the decision to withdraw from the prosecution
was taken by the Cabinet at a meeting held on 24th February
1981 and this meeting was presided over by Dr. Jagannath
Misra himself. It may be that Shri Lallan Prasad Sinha did
not implicitly obey the decision of the Cabinet and applied
his independent mind to the question whether the prosecution
should be withdrawn or not but even so, it would seriously
undermine the confidence of the people in the administration
of justice if a decision to withdraw the prosecution against
him is taken by the accused himself and pursuant to this
decision the Special Public Prosecutor who was appointed by
the State Government of which the accused is Chief Minister,
applies for withdrawal from the prosecution. It is an ele-
mentary principle that justice must not only done but must
also appear to be done. It would be subversive of all prin-
ciples of justice that the accused should take a decision to
withdraw the prosecution against himself and then the Spe-
cial Public Prosecutor appointed in effect and substance by
him makes an application for withdrawal from the prosecu-
tion. [764E-H; 765A-E]
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8.2 It is no doubt true that if there is not sufficient
evidence to sustain the prosecution against Dr. Jagannath
Misra and the other accused, it would be subjecting them to
harassment and inconvenience to require them to appear and
argue before the Court for the purpose of securing an order
of discharge under s.239, but even so it would be desirable
in the interest of public justice that high political per-
sonages, accused of offences should face the judicial proc-
ess and get discharged, rather than seem to manoeuvre the
judicial system and thus endanger the legitimacy of the
political as well as the judicial process. It is possible
that in a particular case personal harassment or inconven-
ience may be caused by non withdrawal of the prosecution, if
the accused is really innocent and is ultimately liable to
be discharged, but such harassment or inconvenience must be
considered as an inevitable cost of public life, which the
repositories of public power should have no hesitation to
pay, as justice must not only be done but must also appear
to be done. [765E-H; 766A]
723
JUDGMENT:
CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No. 241
of 1982
From the Judgment and Order dated 14.9.81 of the Patna
High Court in Crl. Revision No. 874/81.
Dr. L.M. Singhvi, S.K. Sinha, S.K. Verma, A.M. Singhvi,
S. Singh, C. Mukhopadhya and R. Tyagi for the Appellants.
Dr. Y.S. Chitale, F.S. Nanman, S.N. Kacker, Rajinder
Singh, D. Goburdhan, D. Chandrachud, L.R. Singh, Gopal
Singh, M.P. Jha, R.K. Jain, Ranjit Kumar and B.P. Singh for
the Respondents.
The following Judgments were delivered:
BHAGWATI, CJ. This case has had a chequered history and
it is necessary to state the facts in some detail in order
to appreciate the questions which arise for determination
before us. The principal actor in the drama in this case is
Dr. Jagannath Misra, one time Chief Minister of the State of
Bihar. The main controversy around-which all questions
revolve is whether the prosecution launched against Dr.
Jagannath Misra at a time when he was not in power has been
rightly allowed to be withdrawn by the Chief Judicial Magis-
trate or whether such withdrawal is invalid and must be set
aside so that the prosecution can continue against Dr.
Jagannath Misra.
The fact-situation out of which this case arises relates
to the affairs of a cooperative Bank called the ’Patna Urban
Cooperative Bank’ (hereinafter referred to as the ’Coopera-
tive Bank’). The Cooperative Bank was registered in May 1970
and it commenced its banking business with Nawal Kishore
Sinha as its Chairman, K.P. Gupta as its Honorary Secretary,
M.A. Hyderi as its Manager and A.K. Singh as a loan clerk.
It was not seriously disputed that most of the members of
the Cooperative Bank were closely associated with Nawal
Kishore Sinha. The object of the Cooperative Bank was to
help people financially to set up small industries and
businesses and to assist people in ordinary circumstances to
carry on their vocation or business. There was a sub-Commit-
tee formed, called "Loan Sub Committee", consisting of Nawal
Kishore Sinha, K.P. Gupta and one Purnendu Narain, an Advo-
cate, to attend to the work of sanctioning and granting of
loans. The Chairman, i.e., Nawal Kishore Sinha, was, accord-
ing to the bye-laws, the ultimate deciding authority in
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regard to all the functions of the Cooperative Bank and the
Honorary Secre-
724
tary i.e.K.P. Gupta along with the Chairman had to exercise
supervisory control over all the activities of the Coopera-
tive Bank, while the Manager, i.e. M.A. Hyderi, was con-
cerned only with its :lay-to-day working. Dr. Jagannath
Misra who was then a Member of the Legislative Council was
closely associated with Nawal Kishore Sinha and he helped
the Cooperative Bank and Nawal Kishore Sinha in diverse ways
in connection with the affairs of the Cooperative Bank and
also assisted in mobilisation of resources for the Coopera-
tive Bank. Sometime in 1974 separate audits into the func-
tioning of the Cooperative Bank were carried out by the
Reserve Bank of India as well as the Cooperative Department
of the State of Bihar for the years 1972-73 and 1973-74 and
as a result of these audits, there came to light a large
number of irregularities such as non-maintenance of cash
books in a proper manner and grant of overdraft facilities
without current account as also illegal practices and acts
of defalcation and malversation of funds of the Cooperative
Bank. The audit reports disclosed that huge amounts running
into lakhs of rupees, had been squandered away by giving
loans to non-members, giving loans even without applica-
tions, agreements or promissory notes, giving loans without
hypothecation or security, giving short-term loans instead
of releasing cash from sale proceeds of hypothecated goods,
giving loans to the same persons in different names and
giving loans to fictitious persons and non-existing firms or
industries. There were instances where loans had been grant-
ed on the security of Gandhi Maidan and Patna Railway Sta-
tion. The audit team of the Reserve Bank in its Report came
to the conclusion that Nawal Kishore Sinha and others were
responsible for ’bad loans’ to the tune of Rs. 12 lakhs and
misappropriation and embezzlement of funds to the extent of
Rs.25 lakhs.
On the basis of these audit reports, the Registrar
Cooperative Societies, at the instance of the Reserve Bank,
made an order on 10th July 1974 superseding the management
of the Cooperative Bank, removing Naval Kishore Sinha and
other Directors on the Board from their office as Chairman
and Directors and appointing an officer of the Cooperative
Department as Special Officer to look-after the affairs of
the Cooperative Bank. The Registrar, Cooperative Societies
followed up this action by putting up a note dated 4th
November 1974 to the Secretary, Cooperation pointing out
that, according to the audit reports, prima facie charges of
defalcations, embezzlement of funds, conspiracy etc. were
made out against the officials of the Cooperative Bank and
legal action should be taken against them after taking the
opinion of the Public Prosecutor. The Secretary, Cooperation
by his note dated 7th November 1974 sought the opinion of
the Law Depart-
725
ment in regard to the action to be taken as suggested in the
note of the Registrar, Cooperative Societies. The Law De-
partment recorded its opinion in the relevant file on 18th
November 1974 that a prima facie case of conspiracy and
criminal breach of trust was made out against the loanees
and the office bearers of the Cooperative Bank. On the basis
of this opinion, a draft complaint was prepared on 16th
December 1974 by the Asstt. Public Prosecutor, Patna for
being filed in the court of the Chief Judicial Magistrate,
Patna and on the same day, an office noting was made on the
file suggesting that the advice of the Law Department on the
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draft complaint be obtained. This course of action was
approved by the Secretary, Cooperation and the Minister for
Cooperation also approved of it on1st January 1975 and it
also received the approval of the then Chief Minister, Shri
Abdul Ghafoor on 2nd January 1975. The file was then sent
back to the Law Department and the Law Department again
reiterated its earlier advice for launching the prosecution
and on the file being received back on 17th January 1975,
the Secretary Cooperation, endorsed the file on 21st January
1975 to the Additional Public Prosecutor, Shri Girish Narain
Sinha, for necessary action, that is, to file the prosecu-
tion. Thus, by 21st January 1975 a firm decision was taken
to launch a criminal prosecution- against the loanees and
the members of the Board of Directors of the Cooperative
Bank including the Chairman Naval Kishore Sinha and a com-
plaint in that behalf duly approved by the Law Department
and signed by Shri Jagdish Narain Verma, District Coopera-
tive Officer, Patna on 25th January 1975 was ready with the
Addl. Public Prosecutor, for being filed in the court of the
Chief Judicial Magistrate. But before the Additional Public
prosecutor could file the complaint, Dr. Jagannath Misra who
was then Minister incharge of Agriculture and Irrigation
wrote a buff-sheet note dated 24th January 1975 asking the
Secretary Cooperation to send the concerned file along with
the audit reports to him before instituting the criminal
case. It may be pointed out that under the Notification
dated 30th April 1974 issued under Article 166(3) of the
Constitution read with Rule 5 of the Rules of Executive
Business of the State of Bihar, the then Chief Minister Shri
Abdul Ghafoor, was holding inter alia the portfolio of Law
but, according to the affidavit of Shri Neelanand Singh
dated 19th October 1982 filed on behalf of respondent No. 1
in this Court, Shri Abdul Ghafoor had, with a view to lessen
his heavy burden, requested Dr. Jagannath Misra to look
after the work of the Law Department. Since Dr. Jagan-
nath Misra asked for the concerned file, Shri Abdul
Ghafoor, on a reference made to him directed on 27th January
1975 that the file may be sent to Dr. Jagannath Misra. The
Secretary, Cooperation accordingly recalled the comp-
726
laint and other papers from the Additional Public Prosecutor
on 28th January 1975. The file was then placed before R.K.
Srivastava, Minister of Cooperation and he made an endorse-
ment on the file on 31st January 1975 pointing out various
instances of criminal conspiracy criminal breach of trust
and misappropriation of public funds which had come to light
against the Directors of the Cooperative Bank and sent the
file to Dr. Jagannath Misra route to the Chief Minister
since they wanted to see the file before the complaint was
actually lodged. It does not appear from the record as to
when the file was actually sent to Dr. Jagannath Misra but
in any event the file was in the hands of Dr. Jagannath
Misra on 24th February 1975. The file remained with Dr.
Jagannath Misra for over two and a half months and no en-
dorsement was made by him on that file until the middle of
May 1975 with the result that prosecution could not be filed
against Naval Kishore Sinha and the other Directors. Mean-
while on 11th April 1975, Shri Abdul Ghafoor was thrown out
and in his place Dr. Jagannath Misra became Chief Minister.
Dr. Jagannath Misra made an Order in his own hand in Hindi
in the file on 16th May 1975 regarding the action to be
taken against Nawal Kishore Sinha and others and the English
translation of this Order ran as follows:
"Much time has passed. On perusal of the File
it appears that there is no allegation of
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defalcation against the Chairman and the
Members of the Board of the Bank. Stern action
should be taken for realisation of loans from
the loanees and if there are difficulties in
realisation from the loanees surcharge pro-
ceedings should be initiated against the Board
of Directors. The normal condition be resorted
in the Bank after calling the Annual General
Meeting and holding the election.
Sd/
-
May 16, 1975 Jagan-
nath Misra
In the margin opposite to this Order, the seal contain-
ing the despatch entry originally showed May 16, 1975 as the
date on which the file was despatched from the Chief Minis-
ter’s ,secretariat to the Cooperative Department after Dr.
Jagannath Misra had made the Order. It is obvious from the
first part of the Order that Dr. Jagannath Misra did not
want any criminal prosecution to be launched against Nawal
Kishore Sinha and the other Members of the Board of the
Cooperative Bank and that is why he observed that there was
no allegation of defalcation against the Chairman and the
Members of the
727
Board though that was not correct. The object of making this
observation clearly was to pre-empt the filing of any crimi-
nal prosecution against Nawal Kishore Sinha and the other
members of the Board. The second part of the Order provided
that if there was any difficulty in realisation of the loans
from the loanees, surcharge proceedings should be initiated
against the Chairman and other members of the Board and
since the loans advanced by the Cooperative Bank were mostly
in fictitious names and in any event it was impossible to
recover them. It was clear that, on the basis of this part
of the Order, surcharge proceedings would have to be adopted
against the Chairman and other Directors of the Cooperative
Bank. Now, according to the despatch entry as originally
made, the file containing this Order must have left the
office of Dr. Jagannath Misra on 16th May 1975, though the
case of Dr. Jagannath Misra is that it never left his of-
fice. If the file left the office of Dr. Jagannath Misra on
16th May 1975, it does not appear from the record as to when
i4 came back, because there is no endorsement or seal show-
ing inward receipt of the file by the Secretariat of Dr.
Jagannath Misra. But whether the file remained in the office
of Dr. Jagannath Misra as claimed by him or it left the
office on 16th May 1975 and subsequently came back to the
office, it is indisputable that Dr. Jagannath Misra passed
another Order in his own hand on a piece of paper in Hindi
under his signature and had it pasted over the earlier order
dated 16th May 1975 so as to efface the same completely and
this subsequent Order was ante-dated to 14th May 1975. The
date of despatch namely, 16th May 1975 in the despatch entry
appearing in the margin was also altered to 14th May 1975 by
over-writing. The English translation of this second Order
addressed to the Minister, Cooperation was in the following
terms:
"Please issue order for restoring the normal
condition in the Bank after holding Annual
General Meeting".
Sd
/-
May 14, 1975 Jagan-
nath Misra"
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The explanation given on behalf of Dr. Jagannath Misra was
that, as Chief Minister, he had authority and power to
revise or review his earlier order and that it is the usual
practice prevailing at the Patna Secretariat that whenever
any order passed earlier is sought to be revised or reviewed
by the same officer or Minister, it is done by pasting it
over by a piece of paper containing the revised order. But
even with this explanation, the admitted position that
emerges is that the first Order dated 16th May 1975 made by
Dr. Jagannath Misra in 1 is own
728
handwriting in the file was obliterated by the second Order
made by him subsequent to 16th May 1975 but ante-dated to
14th May 1975 and the date 16th May 1975 in the despatch
entry was also changed to 14th May 1975 by overwriting. The
effect of this action on the part of Dr. Jagannath Misra was
that even the direction to adopt surcharge proceedings
against the Chairman and Board of Directors in default of
realisation of the loans from the loanees, was wiped out and
the only direction which remained was that normal condition
in the Cooperative Bank should be restored by calling the
Annual General Meeting and holding the election. Thus, not
only no approval was given by Dr. Jagannath Misra to the
filing of the prosecution against the Chairman and members
of the Board of Directors but no direction was given even in
regard to the adoption of surcharge proceedings against
them. There can be no doubt that Dr. Jagannath Misra as
Chief Minister had the authority and power to revise the
earlier Order dated 16th May 1975 and he could have easily
done sO, but instead, he ante-dated the second Order to 14th
May 1975 and pasted it over the earlier Order dated to 16th
May 1975 so as to efface it altogether and also altered the
date of the despatch entry to 14th May 1975. The contention
was that this was deliberately done by Dr. Jagannath Misra
with the fraudulent intent to override the effect of the
earlier Order dated 16th May 1975 and protect Nawal Kishore
Sinha from civil liability arising from initiation of sur-
charge proceedings. This contention was disputed on behalf
of Dr. Jagannath Misra and it was said that this was an
innocent act in accordance with the practice of the Patna
secretariat and the ante-dating was not mala fide but simply
a result of bona fide error. This is a matter which would
have to be gone into by the Court if the withdrawal of the
prosecution is set aside and the prosecution is directed to
be continued against Dr. Jagannath Misra.
So far as the filing of the prosecution against Nawal
Kishore Sinha and the other members of the Board of Direc-
tors was concerned, it appears that the Cooperative Depart-
ment wanted to go ahead with it and the Minister, Coopera-
tion accordingly put up a Note dated 28th June 1975 and
sought directions from Dr. Jagannath Misra as to what should
be the next course of action in the matter of filing of the
complaint. Dr. Jagannath Misra in response to this query
passed the following Order in the file on 30th June 1975:
"Discussion has been held. There is no need to file the
prosecution." This clearly shows that Dr. Jagannath Misra
did not want any prosecution to be filed against Nawal
Kishore Sinha and others and wanted to protect Nawal Kishore
Sinha against any such criminal prosecution. It appears that
in July 1975 there were questions and call attention motions
in the
729
Bihar Legislative Assembly and in the course of the proceed-
ings, the propriety of not filing prosecution against Nawal
Kishore Sinha and others connected with the affairs of the
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Cooperative Bank, despite the advice of the Law Department,
was discussed and the Speaker referred the matter to the
Estimates Committee of the House. The next event which
happened in chronological sequence was that the annual
general meeting of the Cooperative Bank was held and the
associates of Nawal Kishore Sinha were elected in November,
1975, the management of the Cooperative Bank was handed over
to the elected directors. But, on 15th April, 1976 the
Reserve Bank of India cancelled the banking licence of the
Cooperative Bank and on 19th April, 1976 the Cooperative
Bank was ordered to be liquidated and T. Nand Kumar, an IAS
officer, was appointed liquidator of the Cooperative Bank.
The Estimates Committee to which the matter had been
referred by the Speaker submitted its report in June, 1976
recommending prosecution of Nawal Kishore Sinha and others
and this led to a debate in the Bihar Legislative Assembly
in July 1976, the upshot of which was that the Government
was forced to agree to launch prosecution against the cul-
prits. Dr. Jagannath Misra accordingly passed an order on
4th August 1976 directing launching of prosecution against
those involved in the sordid affairs of the Cooperative Bank
but even there, he directed that the prosecution be launched
against some of the office bearers and loanees including
K.P. Gupta, M.A. Hyderi and A.K. Singh but not against Nawal
Kishore Sinha. Thus, 23 criminal cases were filed against
these office bearers and loanees but Nawal Kishore Sinha was
excluded from being arraigned as an accused in these cases.
This order made by Dr. Jagannath Misra affords the clearest
indication that, even with all the furore which had arisen
on account of non-prosecution of Nawal Kishore Sinha and
others. Dr. Jagannath Misra persisted in his attempt to
shield Nawal Kishore Sinha from prosecution. T. Nand Kumar,
liquidator of the Cooperative Bank however addressed a
communication to the Registrar Cooperative Societies sug-
gesting that besides the other office bearers, Nawal Kishore
Sinha also deserved to be prosecuted for the offences of
embezzlement, forgery, cheating etc. but the matter was kept
pending. for the report of the Superintendent of the Police
(Cooperative Vigilance Cell). The Superintendent of Police
(Cooperative Vigilance Cell) after collecting the necessary
evidence got it examined by the Deputy Secretary, Law, and
on the basis of the opinion given by the Law Department that
a criminal case was fully made Out against Nawal Kishore
Sinha. He proposed on the file on 8th October, 1976 that a
730
fresh criminal case as per draft first information report,
should be filed against Nawal Kishore Sinha and he should
also be made co-accused in the previously instituted cases.
This proposal was approved by the Deputy Inspector General
(CID) and it was submitted to the Commissioner of Coopera-
tive Department for obtaining the approval of the Chief
Minister, that is, Dr. Jagannath Misra. Since Dr. Jagannath
Misra had earlier made an order restricting the filing of
criminal cases against some of the office bearers and loa-
nees and excluded Nawal Kishore Sinha from the prosecution,
the Superintendent of Police in charge of cooperative vigi-
lance cell categorically stated in his note that the draft
first information report against Nawal Kishore Sinha had
been vetted by the Deputy Secretary, Intelligence CID, as
well as by Inspector General of Police. The Commissioner of
Cooperative Department after examining the entire material
carefully and obtaining clarifications on certain points put
up a lengthy note on 15th January, 1977, to the Minister
Cooperation in which he specifically placed the proposal of
the Superintendent of Police (Cooperative Vigilance Cell)
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for launching first information report against Nawal Kishore
Sinha for his approval and also suggested that the Hon’ble
Minister may obtain the approval of the Chief Minister. The
Minister Cooperation in his turn endorsed the file on 20th
January, 1977 to the Chief Minister for approval. The file
was received in the secretariat of the Chief Minister on
30th March, 1977 and Dr. Jagannath Misra as Chief Minister
instead of clearly and specifically approving the proposal
or even indicating his mind either way, merely marked the
file to ’I.G. of Police’ on 9th April, 1977. It is difficult
to understand this endorsement made by Dr. Jagannath Misra
because the draft first information report had already been
vetted and approved by the Inspector General of Police and
there was no point in referring the matter back to the
Inspector General of Police. If Dr. Jagannath Misra was
merely approving the action proposed to be taken he would
have either made an endorsement of approval or put his
signatures or initials without saying anything more but
instead he marked the file to ’I.G. of Police’. There is
considerable force in the submission made on bahalf of the
appellant that the object of making this endorsement was
merely to put off the matter. Soon thereafter however on
30th April, 1977 the Government of Dr. Jagannath Misra went
out of power and President’s Rule was imposed in the State
of Bihar. The file containing the proposal for prosecution
of Nawal Kishore Sinha then went to the Advisor (Coopera-
tion) under the President’s Rule and he approved the propos-
al on 15th May, 1977 and the then Governor, Shri Jagannath
Kaushal, gave his approval to the proposal on 16th May, 1977
with the result that a criminal case ultimately came to be
filed against
731
Nawal Kishore Sinha on 30th May, 1977. It is obvious from
this narration of facts that Dr. Jagannath Misra, whilst he
was in power, made determined effort to protect Nawal Ki-
shore Sinha against any criminal prosecution even though the
filing of criminal prosecution was advised by the Reserve
Bank of India and the Cooperative Department, proposed by
the investigating authorities, recommended by the Estimates
Committee and strongly supported by the Law Department. But
ultimately a criminal prosecution was launched against Nawal
kishore Sinha after Dr. Jagannath Misra went out of power.
Sometime in May, 1977 as a result of fresh elections
to the State Legislature, a new Government came to power in
the State of Bihar and at the instance of Shri Karpoori
Thakur who became the Chief Minister in the new Government,
an inquiry was directed into the allegations regarding
irregularities in the affairs of the Cooperative Bank. The
inquiry was entrusted to the then Secretary Shri D.N. Sahay.
Meanwhile a Commission of Inquiry had already been institut-
ed by the State Government and Shri D.N. Sahay therefore
addressed a communication dated 1st September, 1977 to the
Special Secretary in regard to the charge relating to the
affairs of the Cooperative Bank and he pointed out that
since an inquiry had already been instituted, it may not be
desirable to proceed with a vigilance inquiry. Shri Karpoori
Thakur however directed that the vigilance inquiry might
continue as the materials collected as a result of the
vigilance inquiry could be made use of by the Commission of
Inquiry. The vigilance inquiry was thereafter entrusted to
Shri D.P. Ojha who was posted as Superintendent of Police,
Vigilance, by Shri Karpoori Thakur and all the cases relat-
ing to the affairs of the Cooperative Bank were transferred
to the vigilance department. M.A. Hyderi who was already an
accused in the previously instituted cases was re-arrested
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in connection with those cases and in the course of the
fresh investigation started by the vigilance department,
M.A. Hyderi made a second confessional statement on 24th
January, 1978 which implicated Dr. Jagannath Misra which
sought to support the case that Dr. Jagannath Misra had been
helping Nawal Kishore Sinha by abusing his office and for
making illegal gains for himself. It may be noted that M.A.
Hyderi had earlier made a confessional statement on 3/4th
November, 1976 in which he had not implicated Dr. Jagannath
Misra but in the second confessional statement recorded on
24th January, 1978 he clearly and unequivocally implicated
Dr. Jagannath Misra. On 28th January, 1978 A.K. Singh also
made a confessional statement supporting the confessional
statement of M.A. Hyderi. Immediately after recording these
confessional statements Shri D.P. Ojha submitted his inquiry
report
732
recommending institution of criminal cases against Dr.
Jagannath Misra and others. This recommendation was support-
ed by the Deputy Inspector General of Police (Vigilance) as
also by the inspector General of Police (Vigilance). The
file was then referred to the Advocate General, Shri K.D.
Chatterjee, and the recommendation to institute prosecution
against Dr. Jagannath Misra and others was approved by the
Advocate General who opined that there was sufficient mate-
rial for the prosecution of Dr. Jagannath Misra and others.
The file was then placed before the Chief Minister, Karpoori
Thakur, on 31st January, 1978 and it was approved by him on
the same day and a direction was given to investigate the
case against Dr. Jagannath Misra and others and to institute
prosecution against them. The police in the vigilance de-
partment thereafter filed Vigilance P.S. Case No. 9(2)78 and
carried out further investigation and ultimately as a result
of such investigation, two charge sheets were filed against
Dr. Jagannath Misra and others on 21st February, 1979.
One, A.K. Datta, a senior advocate of the Patna High
Court was appointed Special Public Prosecutor by the State
Government on 26th February, 1979 to conduct these two
vigilance cases against Dr. Jagannath Misra and others and
on 21st November, 1979, the Chief Judicial Magistrate-cum-
Special Judge, Patna took cognizance of these two cases. But
before these two cases could proceed further there was a
change of Government in the State of Bihar and Dr. Jagannath
Misra once again became the Chief Minister in June, 1980.
Dr. Jagannath Misra after coming back to power constituted a
Cabinet subCommittee on 15th September, 1980 to consider the
expediency of the withdrawal of the prosecution and on 20th
February, 1981 the Cabinet sub-Committee recommended that
the cases against Dr. Jagannath Misra and others should be
withdrawn. This recommendation of the Cabinet sub-Committee
was placed before the Cabinet presided over by Dr. Jagannath
Misra and it was approved by the Cabinet on 24th February,
1981. On the same day on which the recommendation of the
Cabinet sub-Committee was approved, a decision was taken
that the two cases against Dr. Jagannath Misra and others
should be withdrawn and the State Government cancelled the
panel of lawyers which had been constituted by the previous
Government for conducting cases pertaining to the vigilance
department and in its place constituted a new panel consist-
ing of four lawyers including one Lallan Prasad Sinha. The
Secretary to the Government of Bihar thereafter addressed a
letter dated 25th February, 1981 to the District Magistrate
which was in the following terms:-
733
" Government of Bihar
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 25 of 70
Law (Justice) Department
From: Shri Ambika Prasad Sinha
Secretary to Government,
Bihar, Patna
To: The District Magistrate
Patna.
Patna, Dated 25th Feb. 1981.
Subject:
In connection with the withdrawal of Vigilance P.S. Case No.
9(2)78
and P.S. case No. 53(8)78.
Sir,
I am directed to say that the State
Government have decided to withdraw from
prosecution the above mentioned two criminal
cases on the ground of inexpediency of prose-
cution for reasons of State and public policy.
You are, therefore, requested to
direct the public prosecutor to pray the Court
after himself considering for the withdrawal
of the above mentioned two cases for the above
reasons under section 321 of the Code of
Criminal Procedure.
Please acknowledge receipt of the
letter and also intimate this department about
the result of the action taken.
Yours
faithfully,
sd.
Illegible
Secretary
to Govt. Patna.
Memo No. MW 26/81, 1056 J.
Patna, dated 25th February, 1981
Copy forwarded to Vigilance Depart-
ment for information."
734
Shri Lallan Prasad Sinha thereupon filed an application
in the Court of the Chief Judicial Magistrate on 16th Jane,
1981 praying for permission to withdraw from the prosecution
of Dr. Jagannath Misra and others under Vigilance P.C. Case
No. 9(2)78. There were four grounds stated in the applica-
tion for permission to withdraw from the prosecution and
they may be stated as follows in the language of the appli-
cation itself:-
(1) Lack of prospect of successful prosecution
in the light of evidence,
(2) the implication of the persons as a result
of political and personal vendetta,
(3) inexpediency of the prosecution for the
reasons of the State and public policy, and
(4) the adverse effects that the continuation
of the prosecution will bring on public inter-
est in the light of the changed situation.
The application after setting out these grounds proceeded to
elaborate them in the following words:-
" ..... That I have therefore gone through
the case diary and the relevant materials
connected with the case and have come to the
conclusion that in the circumstances prevail-
ing at the time of institution of the case and
the investigation thereof, it appears that the
case was instituted on the ground of political
vendetta and only to defame the fair image of
Dr. J.N. Mishra, who was then the leader of
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the opposition and one of the acknowledged
leaders of the Congress party in the country.
The prosecution was not launched in order to
advance the interest of public justice. I
crave leave to place materials in support of
the above submission and conclusion at the
time of moving this petition.
That it is in public interest that
the prosecutor which has no reasonable chance
of success and has been launched as a result
of political vendetta unconnected with the
advancement of the cause of public justice
should not proceed further. More so, as the
same is directed against the head of the
Executive in whom not only the electorate have
put their faith and confidence but who has
been elected
735
leader of the majority party in the legisla-
ture, both events have taken place after the
institution of the case ......"
The application for withdrawal was opposed by Sheonandan
Paswan, a member of the Bihar Legislative Assembly and its
Deputy Speaker at the material time. The locus standi of
Sheonandan Paswan to object to the application for withdraw-
al was challenged by Shri Lallan Prasad Sinha and this
challange was upheld by the learned Chief Judicial Magis-
trate and it was held that Sheonandan Paswan had no locus
standi to oppose the application for withdrawal. The learned
Chief Judicial Magistrate then considered the application
for withdrawal on merits and passed an order dated 28th
JUne, 1981 in which, after reciting the rival contentions
urged before him, held that "it is a fit case in which
prayer of the 1earned Special Public Prosecutor to withdraw
should be allowed and it is therefore allowed" and Dr.
Jagannath Misra and other accused persons were ordered to be
discharged. It will thus be seen that no reasons at all were
given by the learned Chief Judicial Magistrate in his order
for giving his consent to the withdrawal of the prosecution
against Dr. Jagannath Misra and others. It does not appear
from the order as to which ground or grounds’ appealed to
the learned Chief Judicial Magistrate for giving his consent
to the withdrawal.
Sheonandan Paswan thereupon filed Criminal Revision
Application No. 874 of 1981 against the order of the learned
Chief Judicial Magistrate permitting withdrawal of the
prosecution but this application was dismissed in limine by
the High Court by an order dated 14th September 1981. The
High Court observed that the learned Chief Judicial Magis-
trate having considered the grounds urged by Lallan Prasad
Sinha for withdrawal of the prosecution "was satisfied that
permission should be accorded to the special public prosecu-
tor to withdraw the prosecution" and there was, therefore,
no illegality in the Order passed by the learned Chief
Judicial Magistrate. The High Court did not even consider
for itself whether the grounds on which withdrawal of the
prosecution was sought were justified or not. The High Court
seem to proceed on the basis that if the learned Chief
Judicial Magistrate was satisfied that permission should be
accorded for withdrawal of the prosecution, that was enough
and it was not necessary for the High Court to examine the
validity of the grounds urged for such withdrawal. This view
taken by the High Court was, as we shall presently point
out, wholly erroneous.
Since the High Court rejected the Revision Application in
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736
limine, Sheo Nandan Paswan filed the present appeal after
obtaining special leave from this Court. The appeal was
heard by a Bench of three Judges consisting of Tulzapurkar,
Baharul Islam and R.B. Misra, JJ. There was a difference of
opinion amongst the Judges in regard to the decision of the
appeal. Tulzapurkar, J. took the view that a prima facie
case was clearly made out against Dr. Jagannath Misra and
others and the ground urged on behalf of the State Govern-
ment that there was not sufficient evidence which could lead
to the conviction of Dr. Jagannath Misra and others, was not
well founded. The learned Judge took this view on a detailed
consideration of the material which was on record and held
that the withdrawal of the prosecution was not justified
either on merits or in law and being illegal had to be
quashed. Baharul Islam and R.B. Misra, JJ., on the other
hand, took the view that the entire investigation was viti-
ated and no person could be convicted on the basis of evi-
dence procured as a result of such investigation and the
withdrawal of the prosecution was, therefore, justified.
Having regard to the majority judgment of Baharul Islam and
R.B. Misra, JJ., the appeal was dismissed.
Sheo Nandan Paswan thereupon filed a Review application
before this Court. But on the date when the Review applica-
tion was filed, Baharul Islam, J. had already resigned his
office as a Judge of this Court. Now, under the Rules of
this Court the Review application had to be heard by the
same Bench but since Baharul Islam, J. had ceased to be a
Judge, A.N. Sen, J. was asked to join Tulzapurkar and R.B.
Misra, JJ. and thus the Bench consisting of Tulzapurkar,
A.N. Sen and R.B. Misra, JJ. heard the Review application.
The judgment of the Review Bench was delivered by A.N. Sen,
J on 22nd August 1983 and after setting out the rival argu-
ments the learned Judge observed:
"Applying the well-settled principles govern-
ing a review petition and giving my very
anxious and careful consideration to the facts
and circumstances of this case, I have come to
the conclusion that the review petition should
be admitted and the appeal should be re-heard.
I have deliberately refrained from stating my
reasons and the various grounds which have led
me to this conclusion. Any decision of the
facts and circumstances which, to my mind,
constitute errors apparent on the face of the
record and my reasons for the finding that
these facts and circumstances constitute
errors apparent on the face of the record
resulting in the success of the review peti-
tion, may have the possibility of
737
prejudicing the appeal which as a result of my
decision has to be re-heard."
and in the result the learned Judge passed an order admit-
ting the review petition and directing re-hearing of the
appeal. But since prior to the date of this judgment the
case of Mohd. Mumtaz v. Smt. Nandini Satpathy, [1983] 4 SCC
104 had already been referred to a Bench of five Judges, the
learned Judge directed that the present appeal should be
re-heard immediately after Nandini Satpathy’s case. That is
how the present appeal has now come before this Bench of
five Judges.
There was one contention of a preliminary nature ad-
vanced by Mr. Nariman on behalf of Dr. Jagannath Misra and
that contention was that on a proper reading of the order on
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the Review Petition made by A.N. Sen, J. it was clear that
the Review Bench did not exercise the power of review and
set aside the order made by the Original Bench. The argument
was that the order made by the Original Bench stood un-
quashed and unreserved and it was therefore not competent to
the Constitution Bench to rehear the appeal on merits as if
the order of the Original Bench did not exist. It was also
urged by Mr. Nariman on behalf of Dr. Jagannath Misra that
the order made by the Review Bench was not legal and valid
since it was a non-speaking order which did not contain any
reasons why the order of the Original Bench should be re-
viewed. This contention was of course not strongly pressed
by Mr. Nariman but in any event we do not think that it has
any substance. It is undoubtedly true that the order of the
Review Bench did not in so many terms set aside the order of
the Original Bench and used a rather unhappy expression,
namely, "I ...... admit the Review Petition". But it is
clear that when the Review Bench used the expression
"I ..... admit the Review Petition" it plainly unequivocal-
ly meant that it was allowing the Review Petition and set-
ting aside the order of the Original Bench, otherwise it is
difficult to understand how it could possibly "direct the
reheating of the appeal". The appeal could be reheard only
if the Review Petition was allowed and the order of the
Original Bench was set aside and therefore obviously when
the Review Bench directed rehearing of the appeal, it must
by’ necessary implication be held to have allowed the Review
Petition and set aside the Order of the Original Bench. We
cannot allow the true meaning and effect of the order of the
Review Bench to be obfuscated by a slight ineptness of the
language used by the Review Bench. We must look at the
substance of the Order rather than its apparent form. We
must therefore proceed on the basis that the Order of the
Original Bench
738
was set aside and reheating of the appeal directed by the
Review Bench.
We must concede that no reasons appear to have been
given by the Review Bench for allowing the Review petition
and directing heating of the appeal. The question is: does
this introduce any infirmity in the Order of the Review
Bench. There can be no doubt that the Review Bench was not
legally bound to give reasons for the Order made by it. The
apex court being the final court against which there is no
further appeal, it is not under any legal compulsion to give
reasons for an order made by it. It is not uncommon to find
the Supreme Court of the ’United States allowing a writ of
certiorari without giving any reasons. But merely because
there may be no legal compulsion on the apex court to give
reasons, it does not follow that the apex court may dispose
of cases without giving any reasons at all. It would be
eminently just and desirable on the part of the apex court
to give reasons for the orders made by it. But when the apex
court disposes of a Review Petition by allowing it and
setting aside the order sought to be reviewed on the ground
of an error apparent on the face of record, it would be
desirable for the apex court not to give reasons for allow-
ing the Review Petition. Where the apex court holds that
there is an error apparent on the face of the record and the
order sought to be reviewed must therefore be set aside and
the case must be reheard, it would considerably prejudice
the losing party if the apex court were to give reasons for
taking this view. If the Review Bench of the apex court were
required to give reasons, the Review Bench would have to
discuss the case fully and elaborately and expose what
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according to it constitutes an error in the reasoning of the
Original Bench and this would inevitably result in pre-
judgment of the case and prejudice its reheating. A reasoned
order allowing a Review Petition and setting aside the order
sought to be reviewed would, even before the rehearing of
the case, dictate the direction of the reheating and such
direction, whether of binding or of persuasive value, would
conceivably in most cases adversely affect the losing party
at the reheating of the case. We are therefore of the view
that the Review Bench in the present case could not be
faulted for not giving reasons for allowing the Review
Petition and directing reheating of the appeal. It is sig-
nificant to note that all the three Judges of the Review
Bench were unanimous in taking the view that "any decision
of the facts and circumstances which .....constitute errors
apparent on the face of record and my ..... reasons for
the finding that these facts and circumstances constitute
errors apparent on the face of record resulting in the
success of the Review Petition, may have the possibility of
prejudicing the
739
appeal which as a result of my decision has to be reheard".
This contention of Mr. Nariman must therefore be rejected.
The learned counsel on behalf of Dr. Jagannath Misra
also raised another contention of a preliminary nature with
a view to displacing the locus standi of Sheonandan Paswan
to prefer the present appeal. It was urged that when Shri
Lallan Prasad Sinha applied for permission to withdraw the
prosecution against Dr. Jagannath Misra and others, Sheonan-
dan Paswan had no locus to oppose the withdrawal since it
was a matter entirely between the Public Prosecutor and the
Chief Judicial Magistrate and no other person had a right to
intervene and oppose the withdrawal, and since Sheonandan
Paswan had no standing to oppose the withdrawal, he was not
entitled to prefer an appeal against the order of the
learned Chief Judicial Magistrate and the High Court grant-
ing permission for withdrawal. We do not think there is any
force in this contention. It is now settled law that a
criminal proceeding is not a proceeding for vindication of a
private grievance but it is a proceeding initiated for the
purpose of punishment to the offender in the interest of the
society. It is for maintaining stability and orderliness in
the society that certain acts are constituted offences and
the right is given to any citizen to set the machinery of
the criminal law in motion for the purpose of bringing the
offender to book. It is for this reason that in R.S. Nayak
v. A.R. Antulay, [1984] 2 SCC 500 this Court pointed out
that "punishment of the offender in the interests of the
society being one of the objects behind penal statute enact-
ed for larger goods of society, the right to initiate pro-
ceedings cannot be whittled down, circumscribed of lettered
by putting it into a strait jacket formula of locus standi".
This Court observed that locus standi of the complainant is
a concept foreign to criminal jurisprudence. Now if any
citizen can lodge a first information report or file a
complaint and set the machinery of the criminal law in
motion and his locus standi to do so cannot be questioned,
we do not see why a citizen who finds that a prosecution for
an offence against the society is being wrongly withdrawn,
cannot oppose such withdrawal. If he can be a complainant or
initiator of criminal prosecution, he should equally be
entitled to oppose withdrawal of the criminal prosecution
which has already been initiated at his instance. If the
offence for which a prosecution is being launched is an
offence against the society and not merely an individual
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wrong, any member of the society must have locus to initiate
a prosecution as also to resist withdrawal of such prosecu-
tion, if initiated. Here in the present case, the offences
charged against Dr. Jagannath Misra and others are offences
of corruption, criminal breach of trust etc. and therefore
any person who is interested in cleanliness of public
740
administration and public morality would be entitled to file
a complaint, as held by this Court in R.S. Nayak v.A.R.
Antulay (supra) and equally he would be entitled to oppose
the withdrawal of such prosecution if it is already insti-
tuted. We must therefore reject the contention urged on
behalf of Dr. Jagannath Misra that Sheonandan Paswan had no
locus standi to oppose the withdrawal of the prosecution. If
he was entitled to oppose the withdrawal of the prosecution,
it must follow a fortiori that on the turning down of his
opposition by the learned Chief Judicial Magistrate he was
entitled to prefer a revision application to the High Court
and on the High Court rejecting his revision application he
had standing to prefer an appeal to this Court. We must
therefore reject this contention of the learned counsel
appearing on ’behalf of Dr. Jagannath Misra.
There was also one other contention urged on behalf of
Dr. Jagannath Misra with a view to bunking an inquiry by
this Court into the merits of the appeal. It was argued on
behalf of Dr. Jagannath Misra that this was not a fit case
in which the Court should interfere in the exercise of its
extraordinary jurisdiction under Article 136 of the Consti-
tution since the permission granted by the learned Chief
Judicial Magistrate for withdrawal of the prosecution had
resulted in discharge of Dr. Jagannath Misra in respect of
the offences for which he was charge-sheeted and this order
of discharge was upheld by the High Court in revision and
finally by two out of three Judges of this Court and it
would be unfair and unjust to reverse the order of discharge
and direct a retrial of Dr. Jagannath Misra. We have consid-
ered this argument but it does not appeal to us. We fail to
see any logic behind it. It is undoubtedly true that the
effect of the withdrawal of the prosecution against Dr.
Jagannath Misra was that he stood discharged in respect of
the offences for which he was sought to be prosecuted but it
was not an order of discharge which was challenged by Sheo-
nandan Paswan in the revision application filed by him
before the High Court but it was an order granting consent
for withdrawal of the prosecution that that assailed by him.
The analogy of an order of discharge made under section 227
or section 239 of the Code of Criminal Procedure is not
apposite because there the Sessions Judge or the Magistrate,
as the case may be, considers the entire material before him
and then comes to the conclusion that there is not suffi-
cient ground for proceeding against the accused or that the
charge against the accused is groundless. But here when the
Magistrate makes an order granting consent to withdrawal of
the prosecution under section 321, it is a totally different
judicial exercise which he performs and it would not there-
fore be right to say that if the High Court sets aside the
order of the Magistrate granting consent
741
to withdrawal from the prosecution, the High Court would be
really setting aside an order of discharge made by the
Magistrate. What the High Court would be doing would be no
more than holding that the withdrawal from the prosecution
was incorrect or improper and that the prosecution should
proceed against the accused and ultimately if there is not
sufficient evidence or the charges are groundless, the
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accused may still be discharged. Moreover it may be pointed
out that even an order of discharge made by the Magistrate
can be set aside by the High Court in revision if the High
Court is satisfied that the order passed by the Magistrate
is incorrect, illegal or improper or that the. proceedings
resulting in the order of discharge suffer from any irregu-
larity. The revisional power exercised by the High Court
under section 397 is couched in words of widest amplitude
and in exercise of this power can satisfy itself as to the
correctness, legality or propriety or any order passed by
the Magistrate or as to the regularity of any proceedings of
such Magistrate. When this Court is hearing an appeal
against an order made by the High Court in the exercise of
its revisional power under section 397 it is the same revi-
sional power which this Court would be exercising and this
Court therefore certainly can interfere with the order made
by the Magistrate and confirmed by the High Court if it is
satisfied that the order is incorrect, illegal or improper.
In fact, in a case like the present where the question is of
purity of public administration at a time when moral and
ethical values are fast deteriorating and there seems to be
a crisis of character in public life, this Court should
regard as its bounden duty--a duty owed by it to the socie-
ty--to examine carefully whenever it is alleged that a
prosecution for an offence of corruption or criminal breach
of trust by a person holding high public office has been
wrongly withdrawn and it should not matter at all as to how
many Judges in the High Court or the lower court have been
party to the granting of such consent for withdrawal. Here
in the present case, it is no doubt true that the order
granting consent for withdrawal of the prosecution was made
by the learned Chief Judicial Magistrate and it was upheld
by the High Court and two out of three Judges of the bench
of this Court which initially heard the appeal agreed with
the view taken by the High Court but we cannot overlook the
fact that according to the Review Bench which also consisted
of three Judges, there was an error apparent on the face of
the record in the judgment of the earlier Bench. The mathe-
matics of numbers cannot therefore be invoked for the pur-
pose of persuading this Court not to exercise its discretion
under Article 136 of the Constitution.
It was then contended on behalf of Dr. Jagannath Misra that
742
Sheonandan Paswan was Minister in the cabinet of Karpoori
Thakur and continued to be a member of the political party
opposed to Dr. Jagannath Misra and he was therefore actuat-
ed by political motivation in opposing the withdrawal of
prosecution against Dr. Jagannath Misra and in preferring a
revision application to the High Court and an appeal to this
Court. This contention is also without substance and does
not command itself to us. We may concede for the purpose of
argument that Sheonandan Paswan opposed the withdrawal of
the prosecution against Dr. Jagannath Misra because he had a
political score to settle with Dr. Jagannath Misra and he
was motivated by a political vendetta. But that is no reason
why this Court should sustain an order made by the learned
Cheif Judicial Magistrate granting consent for withdrawal of
the prosecution if otherwise the order appears to be improp-
er and unjustified. The question is even if no one had
opposed the withdrawal of the prosecution, would the learned
Chief Judicial Magistrate and the High Court have been
justified in granting consent to the withdrawal of the
prosecution and that would depend essentially on the facts
and particulars of the case placed before the Court. The
political motivation or vendetta of Sheonandan Paswan could
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not possibly be a valid ground for granting consent for
withdrawal of the prosecution if otherwise on the facts and
circumstances of the case it was improper and invalid. It is
a well-established proposition of law that a criminal prose-
cution, if otherwise justifiable and based upon adequate
evidence does not become vitiated on account of mala fides,
or political vendetta of the first informant or the com-
plainant. It was rightly observed by Krishna lyer, J. in
State of Punjab v. Gurdial Singh, [1980] 1 SCR 1076. "If the
use of power is for the fulfilment of a legitimate object,
the actuation or catalisation by malice is not legiciable."
The same principle must obviously apply where a person is
opposing withdrawal of prosecution against an accused. His
political motivation or vendetta cannot justify grant of
consent for withdrawal if otherwise it is not legitimate or
justified.
It is undoubtedly true that the prosecution against Dr.
Jagannath Misra was initiated by the successor Government of
Karpoori Thakur after Dr. Jagannath Misra went out of power.
But that by itself cannot support the inference that the
initiation of the prosecution was actuated by political
vendetta or mala fides because it is quite possible that
there might be material justifying the initiation of prose-
cution against Dr. Jagannath Misra and the successor Govern-
ment might have legitimately felt that there was a case for
initiation of prosecution and that is why the prosecution
might have been initiated. There would be nothing wrong on
the part of the successor Government in
743
doing so and the prosecution cannot be said to be vitiated
on that account. This is precisely what Hidayatullah, J.
speaking for the Constitution Bench pointed out in Krishna
Ballabha Sahay and others v. Commission of Enquiry, [1969] 1
SCR 387:-
"The contention that the power cannot be
exercised by the succeeding ministry has been
answered already by this Court in two Cases.
The earlier of the two has been referred to by
the High Court already. The more recent case
is Shri P.V. Jagannath Rao & Ors. v. State of
Orissa, [1968] 3 SCR 789. It hardly needs any
authority to state that the inquiry will be
ordered not by the Minister against himself
but by some one else. When a Minister goes out
of office, its successor may consider any
glaring charges and may, if justified, order
an inquiry. Otherwise, each Ministry will
become a law unto itself and the corrupt
conduct of its Ministers will remain beyond
scrutiny."
These observations afford a complete answer to the conten-
tion urged on behalf of Dr. Jagannath Misra that this Court
should not interfere with the withdrawal of the prosecution
because the successor Government of Karpoori Thakur or
Sheonandan Paswan was actuated by political motivation or
vendetta.
The learned counsel on behalf of Dr. Jagannah Misra also
contended that the prosecution should not have been initiat-
ed against Dr. Jagannath Misra without a prior inquiry made
through a Commission of Enquiry set up for that purpose. The
argument was that both prudence and propriety requires the
setting up of a Commission of Enquiry prior to initiation of
the prosecution because an inquiry made through the Commis-
sion of Enquiry would act as a filter for politically moti-
vated or mala fide prosecution. This argument is also, in
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our opinion, without any force and cannot be sustained. It
is undoubtedly true that in the past there have been cases
where a successor Government has set up a Commission of
Enquiry to enquire into the conduct of former Chief Minister
and other persons connected with the administration during
the regime of the former Chief Minister but that does not
mean that no prosecution should be launched against a former
Chief Minister or a person holding high pOlitical office
under the earlier regime without first setting up a Commis-
sion of Enquiry for enquiring into his conduct. There is no
provision of law which requires such a course of action to
be adopted and it cannot be said that if a prosecution is
initiated without an inquiry being held by a Commis-
744
sion of Enquiry set up for that purpose, the prosecution
would be bad or. that on that ground alone the prosecution
could be allowed to be withdrawn. The criminal process in
India is quite tardy and slow moving and as it is, it takes
considerable time for a prosecution to ultimately come to an
end and if a requirement were super-imposed that no prosecu-
tion shall be launched against a person holding high politi-
cal office under an earlier regime without first setting up
a Commission of Enquiry and the Commission coming to a prima
facie conclusion that such person has committed acts which
would constitute offences, the entire criminal process would
be reduced to a mockery because the Commission of Enquiry
itself might go on for years and after the inquiry is con-
cluded the prosecution will start where the entire evidence
will have to be led again and it would be subject to cross-
examination followed by lengthy arguments. It would, in our
opinion, be perfectly legitimate for the successor Govern-
ment to initiate a prosecution of a former Chief Minister or
a person who has held high political office under the earli-
er regime without first having an inquiry made by a Commis-
sion of Enquiry, provided, of course, the investigation is
fair and objective and there is sufficient material to
initiate such prosecution. There are, under the existing
law, sufficient safeguards for the purpose of ensuring that
no public servant is harassed by false and vexatious prose-
cution or charges of corruption because no such prosecution
can be initiated without sanction under section 6 of the
prevention of Corruption Act or section 197 of the Code of
Criminal Procedure, 1973. These safeguards cannot be said to
be inadequate even if they do not afford adequate protection
in any particular case, the Magistrate is. always there to
protect an innocent accused because if in the opinion of the
Magistrate, there is not sufficient evidence and the charge
against the accused appears to be groundless, the Magistrate
may straightaway discharge the accused without taking any
evidence. It would become very difficult--almost
impossible--to bring, to use the words of Krishna lyer, J.
"the higher inhabitants of Indian public and political
decks" within the net of the criminal law if an additional
requirement is imposed that there should first be an inquiry
by the Commission of Enquiry before any prosecution can be
launched against them. This contention urged on behalf of
Dr. Jagannath Misra must also, therefore, fail.
That takes us to the merits of the question debated
before us, namely, whether the learned Chief Judicial Magis-
trate and the High Court were right in granting consent for
withdrawal of the prosecution against Dr. Jagannath Misra
and others. The application for withdrawal was made by Shri
Lallan Prasad Sinha and consent for such
745
withdrawal was given by the learned Chief Judicial Magis-
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trate under section 321 of the Code of Criminal Procedure,
1973 and consequently, it is this section which falls for
construction and application in the present case. The ques-
tion is whether the application for withdrawal made by Shri
Lallan Prasad Sinha was within the scope of his power under
section 321 and whether the consent given by the Chief
Judicial Magistrate for such withdrawal was within the terms
of that section. Section 321 reads as follows:-
"321. Withdrawal from prosecution--The Public
Prosecutor or Assistant Public Prosecutor in
charge of a case may, with the consent of the
Court, at any time before the judgment. is
pronounced, withdraw from the prosecution of
any person either generally or in respect of
any one or more of the offences for which he
is tried; and, upon such withdrawal,--
(a) if it is made before a charge has been
framed, the accused shall be discharged in
respect of such offence or offences;
(b) if it is made after a charge has been
framed, or when under this Code no charge is
required he shall be acquitted in respect of
such offence or offences:
Provided that where such offence--
(i) was against any law relating to a matter
to which the executive power of the Union
extends, or
(ii) was investigated by the Delhi Special
Police Establishment under the Delhi Police
EStablishment Act, 1946 (25 of 1946); or
(iii) involved the misappropriation or de-
struction of, or damage to, any property
belonging to the Central Government, or
(iv) was committed by a person in the service
of the Central Government while acting or
purporting to act in the discharge of his
official duty,
746
and the Prosecutor in charge of the case has
not been appointed by the Central Government,
he shall not, unless he has been permitted by
the Central Government to do so, move the
Court for its consent to withdraw from the
prosecution and the Court shall, before ac-
cording consent, direct the Prosecutor to
produce before it the permission granted by
the Central Government to withdraw from the
prosecution."
This section corresponds to section 494 of the old Criminal
Procedure Code, 1898 and it incorporates certain changes
which have relevance in that they threw some light on the
true interpretation of the section. It may be noted that
there are two limbs of section 321. The first is that any
Public Prosecutor or Assistant Public prosecutor incharge of
a case may withdraw from the prosecution of any person but
this power to withdraw from the prosecution is not an unfet-
tered or unrestricted power because it can be exercised only
"with the consent of the Court". If the Court does not give,
its consent to the withdrawal of the prosecution, the Public
Prosecutor or the Assistant Public Prosecutor cannot with-
draw it. But the question is as to what are the grounds on
which the Public Prosecutor or Assistant Public Prosecutor
can apply for withdrawal from the prosecution and also
similarly what are the considerations which must weigh with
the Court in granting or refusing consent for the withdrawal
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of the prosecution. There have been a number of decisions of
this Court bearing on both these issues but it must be
conceded straightaway that these decisions do not disclose
any uniform approach. The Court has in some decisions taken
very narrow view while in some others it has adopted a
broader view. The Court has swung from narrow grounds to
broad ones in different decisions from time to time. We
shall consider some of these decisions a little later.
Now one thing is certain that no unfettered or unre-
stricted power is conferred on the Public Prosecutor--when
we refer to Public Prosecutor, we also include Assistant
Public Prosecutor--to apply for withdrawal from the prosecu-
tion. It is obvious that the power conferred on the Public
Prosecutor to withdraw from the prosecution must be a con-
trolled or guided power or else it will fall foul of Article
14 of the Constitution. It is necessary in this context to
refer to certain other provisions of the Code of Criminal
Procedure, 1973 which, though not directly relevant, throw
some light on the determination of the question as to what
is the extent of the power of the Public Prosecutor to
withdraw from the prosecution and how it is controlled and
regulated.
747
When a First Information Report relating to the commission
of a cognizable offence is lodged in a Police Station under
section 154 or an order is made by a Magistrate directing
the police to investigate a non-cognizable case under sec-
tion 155, the police is bound to investigate the offence
alleged to have been committed. The powers of the police in
regard to investigation and the procedure to be followed by
them in such investigation are set out in sections 157 to
172. Section 173 sub-section (1) casts an obligation on the
police to complete the investigation without unnecessary
delay and sub-section (2) of section 173 then proceeds to
state that as soon as the investigation is completed, the
officer-incharge of the Police Station shall forward to a
Magistrate empowered to take cognizance of the offence on a
police report, a report in the prescribed form stating the
,various particulars mentioned in that sub-section. Section
190 confers power on the Magistrate to take cognizance of an
offence and there are three different ways in which cogni-
zance of an offence may be taken by a Magistrate. This
section states that cognizance of an offence may be taken(a)
upon receiving a complaint of facts which constitute such an
office (b) upon a police report of such facts and (c) upon
information received from any person other than a police
officer or upon his own knowledge that such offence has been
committed. We may concentrate our attention on clause (b)
since the section read with that clause clearly goes to show
that even in the matter of initiating a prosecution, the
police has no unfettered discretion. It is now well-settled
as a result of several decisions of this Court, of which we
may mention only one, namely, H.S. Bains v. State; AIR 1980
SC 1883, that even if the report submitted by the police to
the Magistrate under section 173 states that in the opinion
of the police no offence appears to have been committed and
no prosecution may therefore be initiated, the Magistrate
can still form an opinion on the facts set out in the report
that they constitute an offence and he can take cognizance
of the offence and issue process against the accused. The
Magistrate may also find, after considering the report, that
the investigation is unsatisfactory or incomplete or there
is scope for further investigation and in that event, the
Magistrate may decline to accept the report and direct the
police to make further investigation and then decide whether
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or not to take cognizance of the offence after considering
the report submitted by the police as a result of such
further investigation. It will thus be seen that the police
has no absolute or unfettered discretion whether to prose-
cute an accused or not to prosecute him. In fact, in our
constitutional scheme, conferment of such absolute and
uncanalised discretion would be violative of the equality
clause of the Constitution. The Magistrate is therefore
given the power to structure and control the discretion of
the
748
police. If the Magistrate finds from the report made by the
police either on initial investigation or on further inves-
tigation directed by the Magistrate, that prima facie an
offence appears to have been committed, the Magistrate is
empowered to take cognizance of the offence notwithstanding
the contrary opinion of the police and equally if the Magis-
trate forms an opinion that on the facts set out in the
report no offence prima facie appears to have been committed
though the police might have come to a contrary conclusion,
the Magistrate can decline to take cognizance of the of-
fence. The discretion of the police to prosecute is thus
’cabined and confined’ and, subject to appeal or revision,
and the Magistrate is made the final arbiter on this ques-
tion. The Legislature has in its wisdom taken the view that
it would be safer not to vest absolute discretion to prose-
cute in the police which is an Executive arm of the Govern-
ment but to subject it to the control of the judicial organ
of the State.
The same scheme has been followed by the Legislature
while conferring power on the Public Prosecutor to withdraw
from the prosecution. This power can be exercised only with
the consent of the Court so that the Court can ensure that
the power is not abused or misused or exercised in an arbi-
trary or fanciful manner. Once the charge-sheet is filed and
the prosecution is initiated, it is not left to the sweet-
will of the State or the Public Prosecutor to withdraw from
the prosecution. The Court is entrusted with control over
the prosecution and as pointed out by Krishna lyer, J. in
Subhash Chander v. State and others; [1980] 2 SCR 44. "The
even course of criminal justice cannot be thwarted by the
Executive however high the accused, however sure the Govern-
ment feels a case is false, however unpalatable the continu-
ance of the prosecution to the powers-that-be who wish to
scuttle court justice because of hubris, affection or other
noble or ignoble consideration." Once the prosecution is
launched, its relentless course cannot be halted except on
sound considerations germane to public justice. And again,
to quote the words of Krishna lyer, J. in the same case,
"the Court is monitor, not servitor, and must check to see
if the essentials of the law are not breached, without, of
course, crippling or usurping the power of the public prose-
cutor." The Public Prosecutor cannot therefore withdraw from
the prosecution unless the Court before which the prosecu-
tion is pending gives its consent for such withdrawal. This
is a provision calculated to ensure non-arbitrariness on the
part of the Public Prosecutor and compliance with the equal-
ity clause of the Constitution.
It is also necessary to point out that the law has fashioned
749
another safeguard against arbitrary exercise of power by the
Public Prosecutor in withdrawing from the prosecution and
this safeguard is that the Public Prosecutor can apply for
withdrawal only on the basis of certain legitimate grounds
which are germane or relevant to public justice. It is
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significant to note that the entire development of adminis-
trative law is characterised by a consistent series of
decisions controlling and structuring the discretion con-
ferred on the State and its officers. The Law always frowns
on uncanalised and unfettered discretion conferred on any
instrumentality of the State and it is the glory of adminis-
trative law that such discretion has been through judicial
decisions structured and regulated. This Court has there-
fore, despite fluctuating opinions delivered in different
cases, laid down the broad principle and consistently acted
upon it, namely, that the power to apply for withdrawal from
the prosecution can be exercised only in furtherance of
justice. It was pointed out by this Court in M.N. Sankarana-
rayanan Nair V.P.V. Balakrishnan and others, [1972] 2 SCR
599, "the essential consideration which is implicit in the
grant of the power is that it should be in the interest of
administration of justice." So also, one of us, (Bhagwati,
J. as he then was) said in State of Orissa v. C. Mohapatra,
[1977] 1 SCR 385 "the ultimate guiding consideration must
always be the interest of administration of Justice." That
is the broad principle under which the Public prosecutor,
must bring his case in order to be able to justify his
application for withdrawal from the prosecution. What are
the different grounds which may possibly come within this
principle is a matter which we shall presently discuss but
whatever be the grounds on which the application is made it
can be sustained only if those grounds are relatable to
furtherance of public justice.
There was one major question debated before us in regard
to the position of the Public Prosecutor in relation to an
application for withdrawal from the prosecution and the
issue was as to what is the degree of autonomy conferred on
the Public Prosecutor vis-a-vis the Government whilst filing
an application for withdrawal. This issue can be operationa-
lised into three different questions: (1) Does section 321
permit a Public Prosecutor to withdraw from a case without
seeking the opinion of the Government (2)whether section 321
empowers a Public Prosecutor to refuse to withdraw from the
prosecution despite the advice of the Government to withdraw
and (3) where a public prosecutor withdraws from the prose-
cution on the advice and direction of the Government, does
he act contrary to the requirement of section 321? These
questions have presented a lot of difficulty and unfortu-
nately as mentioned earlier the decisions of this Court have
not been
750
consistent in the answer to be given to these questions. We
shall refer to a few of these decisions. In State of Bihar
v. Ram Naresh Pandey; [1957] SCR 279 which is the first
important case dealing with the interpretation and applica-
tion of section 321, this Court while deliberating on the
role of a Public Prosecutor said:-
" ....... it is right to remember that the
Public Prosecutor (though an executive officer
as stated by the Privy Council in Bawa Faqir
Singh v. The Kind Emperor, [1938] L.R. 65 I.A.
388, 395) is, in a larger sense , also an
officer of the Court and that he is bound to
assist the Court with his fairly-considered
view and the Court is entitled to have the
benefit of the fair exercise of his function.
It has also to be appreciated that in this
country the scheme of the administration of
criminal justice,is that the primary responsi-
bility of prosecuting serious offences (which
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are classified as cognizable offences) is on
the executive authorities. Once information of
the commission of any such offence reaches the
constituted authorities, the investigation
including collection of the requisite evi-
dence, and the prosecution for the offence
with reference to such evidence, are the
functions of the executive. But the Magistrate
also has his allotted functions in course of
these stages. "............... In all these
matters he exercises discretionary functions
in respect of which the initiative is that of
the executive but the responsibility is his."
These observations seem to suggest that the prosecution for
an offence is the function of the Executive and that the
Public Prosecutor is really an Executive Officer who is
conducting the prosecution on behalf of the State. So also
in M.N. Sankarayaraya Nair v. P.V. Balakrishnan and others
(supra) we find that there is a paragraph which seems to
impliedly accept governmental directive in the matter of
withdrawal from the prosecution as legitimate and that
paragraph reads as follows:-
"The appellant’s Advocate later during the
course of the argument conceded that there is
no force in the first of his contentions
namely that the Public Prosecutor cannot
either be asked by the State Government to
consider the filing of a petition under sec-
tion 494 nor would it be proper for him if he
was of the opinion that the prosecution ought
not to proceed to get the consent of the
Government to the
751
filing of a petition under that section for
obtaining permission of the Court to withdraw
from the prosecution."
This Court also seemed to accept in State of Orissa v. C.
Mohapatra (supra) that the policy decision for withdrawal
from the prosecution can be made by the State though the
application for withdrawal would be made by the Public
Prosecutor. This is what the Court said in that case:
"We cannot forget that ultimately every of-
fence has Social or economic cause behind it
and if the State feels that elimination or
eradication of the social or economic cause
behind it would be better served by not pro-
ceeding with the prosecution the State should
be at liberty to withdraw." (italics are ours)
This position seems to obtain until 1978 so far as the
decided cases are concerned.
But in 1978 the trend changed when in Balwant Singh v.
State of Bihar; [1978] 1 SCR 604 the view that found favour
was that the Public Prosecutor is the primary authority to
decide on the question of withdrawal from the prosecution.
This Court speaking through Krishna Iyer, J observed in this
case:-
"The Statutory responsibility for deciding
upon withdrawal squarely vests on the public
prosecutor. It is non-negotiable and cannot be
bartered away in favour of those who may be
above him on the administrative side. The
Criminal Procedure Code is the only matter of
the public prosecutor and he has to guide
himself with reference to Criminal Procedure
Code only’. ..... Here, the Public Prosecu-
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tor is ordered to move for withdrawal. This is
not proper for a District Magistrate to do.
Indeed, it is not proper to have the public
prosecutor ordered about. It is entirely
within the discretion of the public prosecu-
tor. It may be open to the District Magistrate
to bring to the notice of the Public Prosecu-
tor and suggest to him to consider whether the
prosecution should be withdrawn or not. He
cannot command where he can only command."
This decision for the first time made the Public Prosecutor
autonomous of the Executive in so far as withdrawal from the
prosecution is
752
concerned and held that the Public Prosecutor must apply his
own mind and come to his own decision whether to apply for
withdrawal or not, irrespective of the opinion or advice of
the Executive.
The same view was reiterated by Krishna lyer J., speak-
ing on behalf of the Court, in Subhash Chander v. State and
others (supra) where the learned Judge said:-
"The functionary clothed by the Code with the
power to withdraw from the prosecution is the
Public Prosecutor. The Public Prosecutor is
not the executive, nor a flunk of political
power. Invested by the Statute with a discre-
tion to withdraw or not to withdraw, it is for
him to apply an independent mind and exercise
his discretion. In doing so, he acts as a limb
of the judicative process, not as an extension
of the executive."
The learned Judge strongly depricated the action of the
District Magistrate in directing the Public Prosecutor to
withdraw the prosecution in the case before him and observed
in words admitting of no doubt:-
"The jurisprudence of’ genuflexion is alien to
our system and the law expects every reposito-
ry of power to do his duty by the Constitution
and the law, regardless of commands, direc-
tives, threats and temptations. The Code is
the master for the criminal process. Any
authority who coerces or orders or pressurises
a functionary like a public prosecutor, in the
exclusive province of his discretion violates
the rule of law and any public prosecutor who
bends before such command betrays the authori-
ty of his office. May be, Government or the
District Magistrate will consider that a
prosecution or class of prosecutions deserves
to be withdrawn on grounds of policy or rea-
sons of public interest relevant to law and
justice in their larger connotation and re-
quest the public prosecutor to consider wheth-
er the case or cases may not be withdrawn.
Thereupon, the Prosecutor will give due weight
to the material placed, the policy behind.the
recommendation and the responsible position of
Government, which in the last analysis, has to
maintain public order and promote public
justice. But the decision to withdraw must be
his."
this case also, like the earlier one in Balwant Singh v.
State of Bihar
753
(supra), introduced the concept of independent application
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of mind by the Public Prosecutor on the question of with-
drawal from the prosecution and insisted that the Executive
cannot direct or pressurise the Public Prosecutor to with-
draw from the prosecution and the Public Prosecutor must
come to his own decision without bending before the command
of the Executive. Once this component of independent appli-
cation of mind on the part of the Public Prosecutor was
introduced the Court while considering whether consent for
such withdrawal should be granted or not was required to
deliberate not only on the legitimacy of the grounds urged
in support of the withdrawal but also whether the Public
Prosecutor had applied his mind in the matter.
But then again there was a slight shift in this posi-
tion in the latest decision in R.K. Jain v. State, [ 1980] 3
SCR 982. The Court in this case adopted a more middle of the
road approach and after pointing out what ’the Court con-
ceived to be the correct position in law in the following
words:-
"Whilst at one point it said that it shall be
the duty of the Public Prosecutor to inform
the Court’ and it shall be the duty of the
Court to appraise itself of the reasons which
prompt the Public Prosecutor to withdraw from
the prosecution. The Court has a responsibili-
ty and stake in the administration of criminal
justice and so has the Public Prosecutor, its
’Minister of Justice.’ Both have a duty
to protect the administration of criminal
justice against possible abuse or misuse by
the Executive by resort to the provisions of
s.321 Cr. PC." (emphasis is ours)
The Court recognised that the Government has a role in the
administration of criminal justice and observed:
"An elected Government, sensitive and
responsive to the feelings and emotions of the
people, will be amply justified if for pur-
poses of creating an atmosphere of goodwill or
for the purpose of not disturbing the calm
which has descended it decides not to prose-
cute the offenders involved or not to proceed
further with prosecutions already launched. In
such matters who but the Government can and
should decide in the first instance whether it
should be baneful or beneficial to launch or
continue prosecutions. If the Government
decides that it would be in the interest to
withdraw from
754
prosecutions, how is the Government to go
about to task?" (emphasis is ours).
and proceeded to add that the Public Prosecutor may act on
the advice of the Government in applying for withdrawal of
the prosecution "where large and sensitive issues of public
policy are involved." Chinnappa Reddy, J. speaking on behalf
of the Court elaborated this view in the following words:-
"Where large and sensitive issues of public
policy are involved he must if he is right
minded the Public Prosecutor seek advice and
guidance from the policy-makers. His sources
of information and resources are of a very
limited nature unlike those of the policy-
makers. If the policy makers themselves move
in the matter in the first instance as indeed
it is proper that they should where matters of
momentous public policy are involved and if
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they advice the Public Prosecutor to withdraw
from the prosecution,. it is not for the Court
to say that the initiative came from the
Government and therefore the Public Prosecutor
cannot be said to have exercised a free mind."
(Emphasis is ours)
The majority Judges however took a different view in the
present appeal when it was heard by the earlier Bench.
Baharul Islam, J. stated the view of the majority in the
following terms:-
"Unlike the Judge, the Public Prosecutor is
not an absolutely independent officer. He is
an appointee of the Government, Central or
State (see sections 24 and 25, CrPC), appoint-
ed for conducting in court any prosecution or
other proceedings on behalf of the Government
concerned. So there is the relationship of
counsel and client between the Public Prosecu-
tor and the Government. A Public Prosecutor
cannot act without instructions of the Govern-
ment; a Public Prosecutor cannot conduct a
case absolutely on his own, or contrary to the
instruction of his client, namely, the Govern-
ment ... Section 321 of the Code does not lay
any bar on the Public Prosecutor to receive
any instruction from the Government before he
files an application under that section. If
the Public Prosecutor receives such instruc-
tions, he cannot be said to act under extrane-
ous influence. On the contrary, the Public
Prosecutor cannot file an application for
withdrawal of a
755
case on his own without instruction from the
Government ...... In our opinion, the object
of Section 321, Cr. P.C. appears to be to
reserve power to the Executive Government to
withdraw any criminal case on larger grounds
of public policy such as inexpediency of
prosecutions for reasons of State, broader
’public interest like maintenance of ,law and
order, maintenance of public peace and harmo-
ny, social, economic and political; changed
social and political situation; avoidance of
destabilization of a stable government and the
like. And such powers have been, in our opin-
ion, rightly reserved for the Government, for,
who but the Government is in the know of such
conditions and situations prevailing in a
State or in the country? The Court is not in a
position to know such situations."
It will thus be seen that the position in law in regard to
the degree of autonomy enjoyed by the Public Prosecutor
vis-a-vis the Government in filing an application for with-
drawal of the prosecution is rather confused and it would be
desirable to approach the question on first principle.
Now there can be no doubt that prosecution of an offend-
er who is alleged to have committed an offence is primarily
the responsibility of the Executive. It is the executive
which is vested with the power to file a charge-sheet and
initiate a prosecution. This power is conferred on the
Executive with a view to protecting the society against
offenders who disturb the peace and tranquillity of the
society by committing offences. Of course it is left to the
Court to decide whether to take cognizance of the offences
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set out in the charge-sheet but the filing of the charge-
sheet and initiation of the prosecution is solely within the
responsibility of the Executive. When the prosecution is
initiated by filing a charge-sheet the Public Prosecutor
comes into the picture. Of course, even before the charge-
sheet is filed, the investigating, authorities may seek the
advice of the Public Prosecutor in regard to the prosecution
of the accused but it is not obligatory on the investi-
gating authorities to do so. The Public Prosecutor comes on
the scene as soon as the charge-sheet is filed and he ap-
pears and argues the case on behalf of the prosecution. It
is the State through the investigating authorities which
files a charge-sheet and initiate the prosecution and the
Public Prosecutor is essentially counsel for the State for
conducting the prosecution on behalf of the State. The
expression "Public Prosecutor" is defined in section clause
(u) to mean" any person appointed under section 24 and
includes any person acting under the
756
directions of a Public Prosecutor." Section 24 provides for
the appointment of a Public Prosecutor: sub-section (1) of
section 24 states that "for every High Court the Central
Government or the State Government shall, after consultation
with the High Court, appoint a Public Prosecutor and may
also appoint one or more Additional Public Prosecutors for
conducting in such court any prosecution, appeal or other
proceeding on behalf of the Central Government or State
Government, as the case may be". (Emphasis is ours). Sub-
section(3) of section 24 enacts that for every District, the
State Government shall appoint a Public Prosecutor and may
also appoint one or more Additional Public Prosecutors for
the district and under sub-section(7) of that section a
person is eligible for being appointed as a Public Prosecu-
tor or an Additional Public Prosecutor only if he has been
in practice as an advocate for not less than 7 years. Thus
the Public Prosecutor appointed by the State Government
conducts the prosecution on behalf of the State Government
and the Public Prosecutor appointed by the Central Govern-
ment does so on behalf of the Central Government. It is
undoubtedly true that the Public Prosecutor is an officer of
the Court, as indeed every advocate practising before the
Court is, and he owes an obligation to the Court to be fair
and just: he must not introduce any personal interest in the
prosecution nor must he be anxious to secure conviction at
any cost. He must present the case on behalf of the prosecu-
tion fairly and objectively and as pointed out by this Court
in State of Bihar v. Ram Naresh Pandey (supra) he is bound
to assist the court with his fairly considered view and the
fair exercise of his judgment. But at the same time it must
be noted that he conducts the prosecution on. behalf of the
Central Government or the State Government, as the case may
be, and he is an advocate acting on behalf of the Central
Government or the State Government which has launched the
prosecution. We are therefore of the view that there is
nothing wrong if the Government takes a decision to withdraw
from the prosecution and communicate such direction to the
Public Prosecutor. The Public Prosecutor would inter alia
consider the grounds on which the Government has taken the
decision to withdraw from the prosecution and if he is
satisfied that these grounds are legitimate, he may file an
application for withdrawal from the prosecution. If on the
other hand he takes the view that the grounds which have
been given by the Government are not legitimate he has two
options available to him. He may inform the Government that
in his opinion, the grounds which have weighed with the
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Government are not valid and that he should be relieved from
the case and if this request of his is not granted, he may
tender his resignation. Or else, he may make an application
for withdrawal from the prosecution as directed by the
757
Government and at the hearing of the application he may
offer his considered view to the court that the application
is not sustainable on the grounds set out by him and leave
it to the court to reject the application. We do not think
there is anything wrong in the Public Prosecutor being
advised or directed by the Government to file an application
for withdrawal from the prosecution and the application for
withdrawal made by him pursuant to such direction or advice
is not necessarily vitiated. The Public Prosecutor can of
course come to his own independent decision that the prose-
cution should be withdrawn but ordinarily if he is wise and
’sensible person he will not apply for withdrawal without
consulting the Government because it is the Government which
has launched the prosecution and is prosecuting the accused.
The critically, of course, he can make an application for
withdrawal from the prosecution without consulting the
Government and he cannot be accused of any illegality for
doing so and the court may give its consent for such with-
drawal but in that event the Public Prosecutor would render
the risk of incurring the displeasure of the Government
which has appointed him. If the Public Prosecutor seeks the
permission of the Government for withdrawal from the prose-
cution and the Government grants such permission to him and
on the basis of such permission he applies for withdrawal
the application cannot be said to be vitiated. The proviso
to section 321 in fact contemplates in so many terms that in
certain categories of offences the Public Prosecutor ap-
pointed by the State Government cannot move the Court for
its consent to withdraw from the prosecution without the
permission of the Central Government. There is no danger of
abuse or misuse of power by the Government inherent in this
process because there are two principal safeguards against
any such abuse or misuse of power by the Government: one is
that the application must be based on grounds which advance
public justice and the other is that there can be no with-
drawal without the consent of the court.
Now let us consider the question as to what are the
grounds on which the Public Prosecutor can apply for with-
drawal from the prosecution. These grounds have been var-
iously stated in the decisions of this Court but the basic
principle under lying all these grounds is that the with-
drawal can be sought only for furthering the cause of public
justice. If we. may repeat what we have said before, the
paramount consideration must always be the interest of
administration of justice. That is the touch-stone on which
the question must be determined whether an application for
withdrawal of the prosecution can be sustained. This Court
tried to formulate several instances where the cause of
public justice Would be served better by withdrawal from the
pro-
758
secution. It was observed by this Court in M.N. Sankarava-
raya v. P.V. Balakrishnan (supra) that an application for
withdrawal from the prosecution may be made on the ground
that "it will not be possible to produce sufficient evidence
to sustain the charge or that subsequent information before
prosecuting agency would falsify the prosecution evidence or
in any other similar circumstances which it is difficult to
predicate aS they are dependent entirely on the facts and
circumstances of each case". This Court also pointed out in
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State of Orissa v. C. Mohapatra (supra) that "it is not
sufficient for the Public Prosecutor merely to say’ that it
is not expedient to proceed with the prosecution. He has to
make out some ground which would show that the prosecution
is sought to be withdrawn because inter alia the prosecution
may not be able to produce sufficient evidence to sustain
the charge or that the prosecution does not appear to be
well-founded or that there are circumstances which clearly
show that the object of administration of justice would not
be advanced or furthered by going on with the prosecution."
It was also emphasised by this Court in Subhash Chander v.
State (supra) that "justice cannot be allowed to be scuttled
by the Public Prosecutor or the State because of hubris
affection or other noble or ignoble considerations." This
Court also observed in R.K. Jain v. State (supra):
"In the past we have often known how expedient
and necessary it is in the public interest for
the public Prosecutor to withdraw from prose-
cutions arising out of mass agitations, commu-
nal riots, regional disputes, industrial
conflicts, student unrest etc. Wherever issues
involve the emotions and there is a surcharge
of violence in the atmosphere it has often
been found necessary to withdraw from prosecu-
tions in order to restore peace, to free the
atmosphere from the surcharge of violence, to
bring about a peaceful settlement of issues
and to persist with prosecutions where emotive
issues are involved in the name of vindicating
the law even be utterly counter productive. An
elected Government, sensitive and responsive
to the feelings and emotions of the people,
will be amply justified if for the purpose of
creating an atmosphere of goodwill or for the
purpose of not disturbing a calm which has
descended it decides not to prosecute the
offenders involved or not to proceed further
with prosecutions already launched."
It will thus be seen that the Public Prosecutor cannot
maintain an application for withdrawal from the prosecution
on the ground that the
759
Government does not want to produce evidence and proceed
with the prosecution against the accused or that the Govern-
ment considers that it is not expedient to proceed with the
prosecution. The Public Prosecutor has to make out some
ground which would advance or further the cause of public
justice. If the Public Prosecutor is able to show that he
may not be able to produce sufficient evidence to sustain
the charge, an application for withdrawal from the prosecu-
tion may be legitimately made by him. But there are two
clarifications which we would like to introduce where the
prosecution is sought to be withdrawn on this ground.
The first qualification is that where a charge has been
framed by the Court either under section 228 or section 240
of the Code of Criminal Procedure, 1973, it would not be
open to the Public Prosecutor to apply for withdrawal from
the prosecution on the ground of insufficiency of evidence
in support of the prosecution. The reason is that under
section 228 a charge can be framed by the Court only if the
court is of opinion that there is ground for presuming that
the accused has committed an offence and so also under
Section 240 the Court can frame a charge only if it is of
opinion that there is ground for presuming that the accused
has committed an offence. The Court in both these cases
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applies its mind to the material consisting of the police
report and the documents sent with it under section 173 and
comes to a conclusion that a prima facie case has been made
out against the accused and the charge should therefore be
framed. When the Court has come to this conclusion after
full consideration and framed a charge, it is difficult’ to
see how on the same material the Court can be persuaded to
hold that there is not sufficient evidence to sustain the
prosecution. How can the Public Prosecutor be permitted to
make a volte face on the basis of the same material? That
would be mockery of justice and it would shake the confi-
dence of the people in the purity and integrity of the
administration of justice. That is why this Court pointed
out in Bansi Lal v. Chandi Lal, AIR [1976] SC 370 that, "if
the material before the Additional Sessions Judge was con-
sidered sufficient to enable him to frame the charges
against the respondents, it is not possible to say that
there was no evidence in support of the prosecution case."
So also in Balwant Singh v. State (supra) this Court reiter-
ated that "the State should not stultify the Court by first
stating that there is a true case to be tried and then make
volte face to the effect that on a second investigation the
case has been discovered to be false." The Public Prosecutor
in this last mentioned case sought to rely on a second
investigation for supporting.the application for withdrawal
but, that was clearly and unequivocally not countenanced by
this
760
Court. Obviously, the Public Prosecutor would be on much
weaker ground when on the same material which was before the
Court when it flamed the charge, he subsequently seeks to
withdraw the prosecution on the ground that there is not
sufficient evidence to sustain the prosecution. It is,
therefore, dear that though the prosecution can be withdrawn
at any stage, even after the flaming of the charge, it would
not be competent to the Public Prosecutor, once the charge
is framed, to apply for withdrawal of the prosecution on the
ground that the same material which was before the Court
when it framed the charge is not sufficient to sustain the
prosecution. Of course, if some material has subsequently
come to light which throws doubt on the veracity of the
prOsecution case the Public Prosecutor can certainly apply
for withdrawal on the ground that the prosecution is not
well-founded. It may also happen that in the meanwhile a key
witness may have died or some important evidence may have
become unavailable or some such thing may have happened; in
that event, the Public Prosecutor may legitimately feel that
it will not be possible to sustain the prosecution in the
absence of such evidence and he may apply for withdrawal
from the prosecution. But, on the same material without
anything more, the Public Prosecutor cannot apply for with-
drawal from the prosecution after the charge is flamed. To
allow him to do so would impair the faith of the people in
the purity and integrity of the judicial process.
The second qualification which we must introduce relates
to a situation where a charge-sheet has been filed but
charge has not been framed in a warrant case instituted on
police report. Section 239 of the Code of Criminal Proce-
dure, 1973 provides:-
"If, upon considering the police report and
the documents sent with it under section 173
and making such examination, if any, of the
accused as the Magistrate thinks necessary and
after giving the prosecution and the accused
an opportunity of being heard, the Magistrate
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considers the charge against the accused to be
groundless, he shall discharge the accused,
and record his reasons for so doing."
Now when a warrant case instituted on a police report comes
before the Court, the Court is required to consider only the
police report and the documents sent alongwith it and the
Court may make such examination, if any, of the accused as
it thinks necessary and on the basis of such material if the
Court, after giving the prosecution and the accused an
opportunity of being heard, considers the charge against the
accused to be groundless, the Court is bound to discharge
the accused.
761
What the Court, therefore, does while exercising its func-
tion under section 239 is to consider the police report and
the document sent along with it as also any statement made
by the accused if the court chooses to examine him. And if
the court finds that there is no prima facie case against
the accused the court discharges him. But that is precisely
what the court is called upon to do when an application for
withdrawal from the prosecution is made by the public prose-
cutor on the ground that there is insufficient or no evi-
dence to support the prosecution. There also the court would
have to consider the material placed before it on behalf of
the prosecution for the purpose of deciding whether the
ground urged by the public prosecutor for withdrawal of the
prosecution is justified or not and this material would be
the same as the material before the court while discharging
its function under section 239. If the court while consider-
ing an application for withdrawal on the ground of insuffi-
ciency or, absence of evidence to support the prosecution
has to scrutinise the material for the purpose of deciding
whether there is in fact insufficient evidence or no evi-
dence at all in support of the prosecution, the court might
as well engage itself in this exercise while considering
under section 239 whether the accused shall be discharged or
a charge shall be framed against him. It is an identical
exercise which the Court will be performing whether the
court acts under section 239 or under section 321. If that
be so, we do not think that in a warrant case instituted on
a police report the public prosecutor should be entitled to
make an application for withdrawal from the prosecution on
the ground that there is insufficient or no evidence in
support of the prosecution. The court will have to consider
the same issue under section 239 and it will most certainly
further or advance the case of public justice if the court
examines the issue under section 239 and gives its reasons
for discharging the accused after a judicial consideration
of the material before it, rather than allow the prosecution
to be withdrawn by the Public Prosecutor. When the prosecu-
tion is allowed to be withdrawn there is always an uneasy
feeling in the public mind that the case has not been al-
lowed to be agitated before the court and the court has not
given a judicial verdict. But, if on the other hand, the
court examines the material and discharges the accused under
section 239, it will always carry greater conviction with
the people because instead of the prosecution being with-
drawn and taken out of the ken of judicial scrutiny the
judicial verdict based on assessment and evaluation of the
material before the court will always inspire greater confi-
dence. Since the guiding consideration in all these cases is
the imperative of public justice and it is absolutely essen-
tial that justice must not only be done but also appear to
be done. We would hold that in a warrant case instituted on
a police report--which
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762
the present case against Dr. Jagannath Misra and others
admittedly is--it should not be a legitimate ground for the
public prosecutor to urge in support of the application for
withdrawal that there is insufficient or no evidence in
support of the prosecution. The court in such a case should
be left to decide under section 239 whether the accused
should be discharged or a charge should be framed against
him.
We may also reiterate what was pointed out by this Court
in State of Orissa v.C. Mohapatra (supra) that in a given
case it may not be "conducive to the interest of justice to
continue the prosecution .... since the prosecution with
the possibility of conviction" may rouse feelings of bitter-
ness and antagonism and disturb the calm and peaceful atmos-
phere which has been restored. We cannot forget that ulti-
mately every offence has a social or economic cause behind
it and if the State feels that the elimination or eradica-
tion of the social or economic cause of the crime would be
better served by not proceeding with the prosecution, the
State should clearly be at liberty to withdraw from the
prosecution. This was the ground on which this court in
State of Orissa v.C. Mohapatra (supra) allowed withdrawal of
the prosecution in a case where the incident resulting in
the commission of the offence had arisen out of rivalry
between two trade unions but since the date of the incident
calm and peaceful atmosphere prevailed in the industrial
undertaking. There may be broader considerations of public
peace, larger considerations of public justice and even
deeper considerations of promotion of long lasting security
in a locality, of order in a disorderly situation or harmony
in a factious milieu which may legitimately persuade the
State to "sacrifice a pending case for a wider benefit". The
imperative of public justice may in such cases transcend and
overflow the legal justice of a particular litigation. We
are wholly in agreement with what this Court in Balwant
Singh v. State of Bihar (supra): "... communal feuds which
may have been amicably settled should not re-erupt on ac-
count of one or two prosecutions pending. Labour disputes
which, might have given rise to criminal cases, when set-
tled, might probably be another instance where the interests
of public justice in the broader connotation may perhaps
warrant withdrawal from the prosecution." We also express
our approval of the observations made by this Court in R.K.
Jain v. State (supra) which we have reproduced above:
These are broadly the considerations which can be brought
under the rubric of public justice so as to justify an
application for withdrawal from prosecution. But, of course,
we must make it clear that in this area no hard and fast
rule can be laid down nor can any categories of
763
cases be defined in which an application for withdrawal of
the prosecution could legitimately be made. It must ulti-
mately depend on the facts and circumstances of each case in
the light of what is necessary in order to promote the ends
of justice.
When the application for consent to the withdrawal from
the prosecution comes for consideration, the Court has to
decide whether to grant such consent or not. The function
which the court exercises in arriving at this decision, as
pointed out by this Court in State of Bihar v. Ram Naresh,
is a judicial function. The Court has to exercise its judi-
cial discretion with reference to such material as is then
available to it and in exercise of this discretion the court
has to satisfy itself that the executive function of the
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public prosecutor has not been improperly exercised and that
the grounds urged in support of the application for with-
drawal are legitimate grounds in furtherance of public
justice. The discretion has not to be exercised by the court
mechanically and the consent applied for has not to be
granted as a matter of formality or for the mere asking. The
Court has to consider the material placed before it and
satisfy itself that the grant of consent would serve the
interest of justice. That is why this Court in State of
Bihar v. Ram Naresh (supra) examined the entire material
which was available to it for the purpose of coming to the
conclusion that there was no evidence worth the name on the
basis of which the prosecution could be sustained against
the accused Mahesh Desai. This court pointed out that con-
sent is not to be lightly given on the application of public
prosecutor "without a careful and proper scrutiny of the
grounds on which the application for consent is made." It
was emphasised by this Court that in these matters the
public prosecutor exercises discretionary functions in
respect of which the initiative is that of the executive but
the responsibility is that of the court. This court again
reiterated in M.N. Sankarayaraynanan Nair v. P.V. Balakrish-
nan & Ors. (supra) that the court must satisfy itself that
the executive function of the public prosecutor has not been
improperly exercised and that it is not an attempt to inter-
fere with the normal course of justice and added that the
court may give its permission only if it is satisfied on the
materials placed before it that the grant of consent sub-
serves the administration of justice. The same view has been
taken in all the subsequent cases and it must now be regard-
ed as well settled that the court while considering whether
’to grant consent or not must not accept the ipse dixit of
the public prosecutor and content itself by merely examining
whether the public prosecutor has applied an independent
mind but the court must satisfy itself not only that the
grounds are germane or relevant to advancement of public
justice but also
764
whether the grounds in fact are satisfactorily established.
The ultimate test which must be applied by the court in
order to determine the validity of the grounds in a particu-
lar case is that the requirement of public justice outweighs
the legal justice of that case so that withdrawal from the
prosecution could be permitted in the larger interest of
public justice. The same considerations which we have dis-
cussed while determining what are the legitimate grounds on
which an application may be made by the public prosecutor
for withdrawal from the prosecution must also apply in
guiding the court as to whether consent for withdrawal of
the prosecution should be granted or not. We may again
emphasise that the imperative of public justice provides the
only relevant consideration for determining whether consent
should be granted or not. It is not possible to provide an
exclusive definition of what may be regarded as falling
within the imperative of public justice nor is it possible
to place the concept of public justice in a strait-jacket
formula. Every case must depend on its peculiar facts and
circumstances because there may be a myriad situation where
this question may have to be considered by this court. The
paramount consideration must be the requirement of public
justice and some of the grounds which would bring the case
within the fabric of public justice have already been dis-
cussed by us in the preceding paragraphs and we need not
repeat them. The same grounds may be regarded as germane and
relevant to the requirement of public justice and if they
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exist, the court would be justified in granting consent to
withdrawal from the prosecution.
If we apply these principles to the facts of the present
case, it is clear that the court of the Chief Judicial
Magistrate, Patna as also the High Court were clearly in
error in granting consent to the withdrawal from the prose-
cution against Dr. Jagannath Misra and others. We do not
propose to go into the question whether the material avail-
able to the court could be regarded as sufficient for sus-
taining the prosecution of Dr. Jagannath Misra and others
because if we consider this question and make any observa-
tions in regard to the sufficiency of the material, such
observations may tend to prejudice Dr. Jagannath Misra and
the other accused. Of course, if there were no other reasons
which would persuade the court not to grant consent to the
withdrawal of the prosecution, we would have had to go into
the question whether the material produced before the court
was sufficient prima facie to sustain the prosecution. But,
there are two very strong and cogent reasons why consent to
the withdrawal of the prosecution must be refused. In the
first place, the learned Chief Judicial Magistrate could
have considered under section 239 whether the material
placed before him was
765
sufficient to make out a prima facie case against Dr. Jagan-
nath Misra and the other accused so that if the learned
Chief Judicial Magistrate came to the conclusion on the
basis of such material that the charge against Dr. Jagannath
Misra and the other accused was groundless, he would be
bound to discharge them for reasons to be recorded by him in
writing. There is no reason why in these circumstances the
public prosecutor should be allowed to withdraw from the
prosecution under section 321. The same exercise could be
performed by the learned Chief Judicial Magistrate by acting
under section 239. Moreover, in the present case, the deci-
sion to withdraw from the prosecution was taken by the
Cabinet at a meeting held on 24th February 1981 and this
meeting was presided over by Dr. Jagannath Misra himself. It
may be that Shri Lallan Prasad Sinha did not implicitly obey
the decision of the Cabinet and applied his independent mind
to the question whether the prosecution should be withdrawn
or not but even so, it would seriously undermine the confi-
dence of the people in the administration of justice if a
decision to withdraw the prosecution against him is taken by
the accused himself and pursuant to this decision the Spe-
cial Public Prosecutor who is appointed by the State Govern-
ment of which the accused is the Chief Minister, applied for
withdrawal from the prosecution. It is an elementary princi-
ple that justice must not only be done but must also appear
to be done. It would be subversive of all principles of
justice that the accused should take a decision to withdraw
the prosecution against himself and then the Special Public
Prosecutor appointed in effect and substance by him makes an
application for withdrawal from the prosecution. We are of
the view that these two considerations are so strong and
cogent that consent to withdraw from the prosecution should
not have been granted in the present case.
It is no doubt true that if there is not sufficient
evidence to sustain the prosecution against Dr. Jagannath
Misra and the other accused, it would be subjecting them to
harassment and inconvenience to require them to appear and
argue before the Court for the purpose of securing an Order
of discharge under section 239, but even so we think it
would be desirable in the interest of public justice that
high’ political personages, accused of offences should face
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the judicial process and get discharged, rather than seem to
manoeuvre the judicial system and thus endanger the legiti-
macy of the political as well as the judicial process. It is
possible that in a particular case personal harassment or
inconvenience may be caused by non withdrawal of the prose-
cution, if the accused is really innocent and is ultimately
liable to be discharged, but such harassment or inconven-
ience must be considered as an inevitable cost of public
life, which the repositories of public power should have no
hesitation to pay, as justice must not only be
766
done but must also appear to be done.
We accordingly allow the appeal, set aside the Order
made by the Chief Judicial Magistrate and confirmed by the
High Court and direct that the prosecution may proceed
against Dr. Jagannath Misra and the other accused in accord-
ance with law.
VENKATARAMIAH, J. I have gone through the judgments of
Bhagwati, C.J. and Khalid, J. which are pronounced today. I
have also gone through the orders of the Special Judge who
permitted the withdrawal of the prosecution, the judgment of
the High Court affirming it, the three judgments pronounced
by Tulzapurkar, J., Bahrul Islam, J. and R.B. Misra, J. by
which this Court by majority affirmed the order permitting
withdrawal of the criminal case in question and also of A.N.
Sen, J. who passed the orders admitting the review petition.
The facts of the case are set out in the judgments referred
to above and it is unnecessary to repeat them here. I have
given my anxious consideration to the case since it relates
to the purity of public life.
At the outset it should be stated that merely because a
court discharges or acquits an accused arraigned before it,
the Court cannot be considered to have compromised with the
crime. Corruption, particularly at high places should be put
down with a heavy hand. But our passion to do so should not
overtake reason. The Court always acts on the material
before it and if it finds that the material is not suffi-
cient to connect the accused with the crime, it has to
discharge or acquit him, as the case may be, notwithstanding
the fact that the crime complained of is a grave one. Simi-
larly if the case has been withdrawn by the Public Prosecu-
tor for good reason with the consent of the Court, this
Court should be slow to interfere with the order of with-
drawal. In this case if the Special Judge had rejected the
application for withdrawal and the High Court had affirmed
that Order, this Court may not have interfered with that
order under Article 136 of the Constitution of India. Even
if the Special Judge had permitted the withdrawal but the
High Court had reversed that order, this Court may not have
interfered with the orders of the High Court. But this is a
case where the Special Judge had permitted the withdrawal of
the prosecution, and the said order of withdrawal has been
affirmed by the High Court as well as by the majority judg-
ment pronounced by this Court earlier. The question is
whether this Court on review should interfere with the order
permitting the withdrawal of the ease. Are there any strong
and compelling reasons which require interference with the
order permitting withdrawal? This is the question which has
arisen before us now.
767
Since the orders of the Special Judge, of the High Court
and of Bahrul Islam, J. and R.B. Misra, J. are in favour of
the accused, I shall not refer to them. I shall refer only
to the judgment of Tulzapurkar, J. (See Sheonandan Paswan
versus State of Bihar and others); [1983] 2 S.C.R. 61, who
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has held against the accused to decide whether there are
sufficient incriminating circumstances which compel this
Court to set aside the order permitting withdrawal of the
prosecution. In his judgment at pages 101 to 103 Tulzapur-
kar, J. summarises the case against Dr. Jagannath Misra
thus:
"It will appear clear from the above discus-
sion that the documentary evidence mentioned
above, the genuineness of which cannot be
doubted, clearly makes out a prima facie case
against Respondent No. 2 sufficient to put him
on trial for the offence of criminal miscon-
duct under s. 5(1) (d) read with s. 5(2) of
the Prevention of Corruption Act, 1947. Simi-
lar is the position with regard to the inci-
dental offence of forgery under s.466, I.P.C.
said to have been committed by him, for,
ante-dating of the second order by him is not
disputed; and it is on record that in regard
to such ante-dating no explanation was offered
by him during the investigation when he was
questioned about it in the presence of his
lawyers and there has been no explanation of
any kind in any of the counter-affidavits
filed before us. But during the course of
arguments his counsel offered the explanation
that could only be ascribed as a bona fide
mistake or slip (vide written arguments filed
on 14.10.1982) but such explanation does not
bear scrutiny, having regard to the admitted
fact that after the ante-dated order was
pasted over the first order the despatch date
appearing in the margin was required to be and
has been altered to 14.5.1975 by over-writing
is required to be done there cannot any bona
fide mistake or slip. The ante-dating in the
circumstances would be with oblique intent to
nullify any possible action that could have or
might have been taken pursuant to the first
order as stated earlier, that being the most
natural consequence flowing from it which must
in law be presumed to have intended. It would,
of course, be open to him to rebut the same at
the trial but at the moment there is no mate-
rial on record--by way of rebuttal. In the
circumstances it is impossible to accept the
paucity of evidence or lack of prospect of
successful prosecution as a valid ground for
withdrawal from the prosecution. On the
768
aforesaid undisputed documentary evidence no
two views are possible in the absence of any
rebuttal material, which, of course, the
respondent No.2 will have the opportunity to
place before the Court at the trial. What is
more the socalled unfair or over-zealous
investigators were miles away when the afore-
said evidence came into existence.
As far as Respondent No. 3 (Nawal
Kishore Sinha) and Respondent No.4 (Jiwanand
Jha) are concerned it cannot be forgotten that
they have been arraigned alongwith Respondent
No. 2 on a charge of criminal conspiracy in
pursuance whereof the several offences are
said to have been committed by all of them.
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Further it is obvious that the principal
beneficiary of the offence of criminal miscon-
duct said to have been committed by Respondent
No. 2 under s. 5(1) (d) read with s. 5(2) of
Prevention of Corruption Act, 1947 has been
Respondent No. 3 and so far as Respondent No.4
is concerned it cannot be said that there is
no material on record suggesting his complici-
ty. Admittedly, he has been very close to
Respondent No. 2 for several years and attend-
ing to his affairs-priVate and party affairs
and the allegation against him in the F.I.R is
that he was concerned with the deposit of two
amounts of Rs. 10,000 and Rs.3,000 on
27.12.1973 and 1.4.1974 in the Savings Bank
Account of Respondent No. 2 with the Central
Bank of India, Patna Dak Bungalow Branch,
which sums, says the prosecution, represented
some of the bribe amounts said to have been
received by respondent No. 2 and the tangible
documentary evidence in proof of the two
deposits having been made in Respondent No.
2’s account consists of two pay-in slips of
the concerned branch of Central Bank of India.
Whether the two amounts came from the funds of
the Patna Urban Co-operative Bank or not and
whether they were really paid as bribe amounts
or not would be aspects that will have to be
considered at the trial. However, as pointed
out earlier the offence under s.5(1) (d) would
even otherwise be complete if pecuniary advan-
tage (by way of scuttling the civil liability
of surcharge) was conferred on Nawal Kishore
Sinha and others. If Respondent No. 2 has to
face the trial then in a case where conspiracy
has been charged no withdrawal can be permit-
ted against Respondent No. 3 and Respondent
No. 4. In arriving at the conclusion that
paucity of evidence
769
is not a valid ground for withdrawal from the
prosecution in regard to Respondents Nos. 2,.
3 and 4. I have deliberately excluded from
consideration the debatable evidence like
confessional statements of the approvers etc.
(credibility and effect whereof would be for
the trial court to decide) said to have been
collected by the allegedly over-zealous inves-
tigating officers after Respondent No.2 went
out of power in 1977."
The three circumstances put up against the accused in
this case are (i) that Jiwanand Jha had credited Rs.10,000
and Rs.3000 on 27.12.1973 and on 1.4.1974 respectively in
the Savings Bank account of Dr. Jagannath Misra, (ii) that
there was ante-dating of the order passed by Dr. Jagannath
Misra on 16.5.1975 and it had been shown as having been
passed on 14.5.1975, and (iii) that there was a confessional
statement of Hydari which supported the prosecution. Tulza-
purkar, J. himself has found it not safe to act on the
confessional statement. He observes "I have deliberately
excluded from consideration the debatable evidence like
confessional statement of approvers (credibility and effect
whereof would be for the trial court to decide) said to have
been collected by the allegedly over-zealous investigating
officers after Respondent No. 2 went out of power in 1977".
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The two other circumstances on which Tulzapurkar, J. has
acted are (i) the crediting of Rs. 10,000 and Rs.3,000 on
27.12.1973 and 1.4.1974 respectively in the Savings Bank
Account of Dr. Jagannath Misra by Jiwanand Jha and (ii) the
ante-dating of the orders dated 16.5.1975.
As regards the first of these two circumstances Tulza-
purkar, J. Observes: "Admittedly, he (Jiwanand Jha) has been
very close to Respondent No. 2 (Dr. Jagannath Misra) for
several years and attending to his affairs-private and party
affairs and the allegation against him in the F.I.R. is that
he was concerned with the deposit of two. amounts of Rs.
10,000 and Rs.3,000 on 27.12.1973 and on 1.4.1974 respec-
tively in the Savings Bank Account of Respondent No. 2 with
the Central Bank of India, Patna Dak Bungalow Branch, which
sums, says the prosecution represented some of the bribe
amounts said to have been received by Respondent No.2 and
the tangible documentary evidence of the two deposits having
been made in Respondent No. 2’s account consists of two
pay-in-slips of the concerned Branch of Central Bank of
India. Whether the two amounts came from the funds of the
Patna Urban Co-operative Bank or not and whether they were
really paid as bribe amounts or not would be aspects that
will have to be considered at the trial". On this observa-
tion, it has to be stated, that it
770
has not been shown by any extract of bank account that the
said two sums came from the Patna Urban Co-operative Bank.
If that was so there would have been entries in the Bank
accounts. Mere crediting of two sums, without any other
reliable evidence, in a bank account by a politically or a
friend does not by itself show that the sums were either
bribe amounts or any official. favour had been shown. This
fact by itself is not conclusive about the guilt of the
accused.
As regards the ante-dating of the order dated 16.5.1975
it may be noticed that Tulzapurkar, J. himself observes in
the course of his order "It is true that a mere ante-dating
a document or an order would not amount to an offence of
forgery but if the document or the order is ante-dated with
the obligue motive or fraudulent intent indicated above
(without the same actually materialising) it will be a
forgery."
The passing of the two orders one on 16.5.1975 on the
note sheet and the other on buff paper which is dated
14.5.1975 is not in dispute. It is explained that it was the
practice in the Bihar Secretariat that whenever an order is
changed it is done by writing the later order on a buff-
sheet and pasting it on the earlier order. We were shown
another file of the Bihar Government where similar pasting
had been done. Tulzapurkar, J. observes that "the second
order which was ante-dated with the obvious fradulent intent
of nullifying or rendering any action that could have been
or in fact might have been taken (even if not actually
taken) pursuant to the first order after the file had left
the Chief Minister’s Secretariat on 16.5.1975, that being
the most material consequence flowing from the act of ante-
dating the second order". It is not shown by the prosecution
that any action had been taken pursuant to the order dated
16.5.1975 by any of the departmental authorities. If any
action had been taken it would have been a matter of record
readily available for production. No such record is produced
before the Court. Hence it is a mere surmise to say that any
such action was sought to be nullified, particularly when
there was no acceptable evidence at all on the communication
of the order dated 16.5.1975 to any departmental authori-
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ties. I also adopt the reasons given by Bahrul Islam. J. and
R.B. Misra, J. in support of my judgment.
In fact about 23 criminal cases have been launched
against Naval Kishore Sinha and others for the offences
alleged to have been committed by them. They remain unaf-
fected. The questions involved in this case are whether Dr.
Jagannath Misra has been a privy to the misdeeds committed
in the Patna Urban Co-operative Bank, whether he and his
co-accused should be prosecuted for the offences of conspi-
771
racy, bribery etc., and whether the Public Prosecutor had
grievously erred in applying for the withdrawal of the case.
All the other Judges who have dealt with the case on merits
from the Special Judge onwards, except Tulzapurkar, J., have
opined that the permission was properly given for withdraw-
al. In the circumstances, it is difficult to take a differ-
ent view in this case.
I respectfully agree with the legal position flowing
from section. 321 of the Code of Criminal Procedure as
explained by Krishna Iyer and Chinnappa Reddy, JJ. in re-
spect of cases relating to Bansi Lal and Fernandes in R.K.
Jain etc., v. State through Special Police Establishment
and Ors., etc. etc., [1980] 3 S.C.R. 982. In that case
Chinnappa Reddy, J. has summarised the true legal position
thus:
"1. Under the scheme of the Code prosecution
of an offender for a serious offence is pri-
marily the responsibility of the Executive.
2. The withdrawal from the prosecution is an
executive function of the Public Prosecutor.
3. The discretion to withdraw from the prose-
cution is that of the Public Prosecutor and
none else, and so, he cannot surrender that
discretion to someone else.
4. The Government may suggest to the Public
Prosecutor that he may withdraw from the
prosecution but none can compel him to do so.
5. The Public Prosecutor may withdraw from the
prosecution not merely on the ground of pauci-
ty of evidence but on other relevant grounds
as well in order to further the broad ends of
public justice, public order and peace. The
broad ends of public justice will certainly
include appropriate social, economic and,
political purposes Sans Tammany Hall enter-
prise.
6. The Public Prosecutor is an officer of the
Court and responsible to the Court.
7. The Court performs a supervisory function
in granting its consent to the withdrawal.
772
8. The Court’s duty is not to reappreciate the
grounds which led the Public Prosecutor to
request withdrawal from the prosecution but to
consider whether the Public Prosecutor applied
his mind as a free agent, uninfluenced by
irrelevant and extraneous considerations. The
Court has a special duty in this regard as it
is the ultimate repository of legislative
confidence in granting or withholding its
consent to withdrawal from the prosecution.
We may add it shall be the duty of
the Public Prosecutor to inform the Court and
it shall be the duty of the Court to appraise
itself of the reasons which prompt the Public
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Prosecutor to withdraw from the Prosecution.
The Court has a responsibility and a stake in
the administration of criminal justice and so
has the Public Prosecutor, its ’Minister of
Justice’. Both have a duty to protect the
administration of criminal justice against
possible abuse or misuse by the Executive by
resort to the provisions of s.321 Criminal
Procedure Code. The independence of the judi-
ciary requires that once the case has tra-
velled to the Court, the Court and its offi-
cers alone’ must have control over the case
and decide what is to be done in each case."
In the circumstances of this case I find it difficult to
say that the Public Prosecutor-had not applied his mind to
the case or had conducted himself in an improper way. If in
the light of the material before him the Public Prosecutor
has taken the view that there was no prospect of securing a
conviction of the accused it cannot be said that his view is
an unreasonable one. We should bear in mind the nature of
the role of a Public Prosecutor. He is not a persecutor. He
is the representative not of an ordinary party to a contro-
versy, but of sovereignty whose obligation to govern impar-
tially is as compelling as its obligation to govern at all,
and whose interest, therefore, in a criminal prosecution is
not that it shall win a case, but that justice shall be
done. As such he is in a peculiar and very definite sense
the servant of the land the two fold aim of which is that
guilt shall not escape or innocence suffer. He may prosecute
with earnest and vigour indeed, he should do so. But while
he may strike hard blows, he is not at liberty to strike
fould ones. It is as much his duty to refrain from improper
methods calculated to produce a wrongful conviction as it is
to use every legitimate one to bring about a just one. (See
Berger v. United States), 295 U.S. 78. It is a privilege of
an accused that he should be prosecuted by a Public Prosecu-
tor in all cases involving
773
heinous charges whenever the State undertakes prosecution.
The judgment of a Public Prosecutor under section 321 of the
Code of Criminal Procedure, 1973 cannot be lightly inter-
fered with unless the Court comes to the conclusion that he
has not applied his mind or that his decision is not bona
fide.
A person may have been accused of several other mis-
deeds, he may have been an anathema to a section of the
public media or he may be an unreliable politician. But
these circumstances should not enter into the decision of
the Court while dealing with a criminal charge against him
which must be based only on relevant material.
Judged by the well-settled principles laid down by this
Court in State of Bihar v. Ram Naresh Pandey; [1957] S.C.R.
279 and R.K. Jain’s case (supra), it is seen that the aver-
ments in the application are similiar to the avernments in
the application made for withdrawal in the case relating to
Fernandes which are to be found in R.K. Jain’s case (supra).
I feel that no case has been made out in this case for
interference. I am also of the opinion that there is no need
to differ from the legal position expanded in the above two
decisions. If any change in the law is needed, it is for
Parliament to make necessary amendment to section 321 of the
Code of Criminal Procedure, 1973. It is significant that
section 321 of the Code of Criminal Procedure, 1973 is
allowed to remain in the same form in 1973 even though in
1957 this Court had construed section 494 of the former
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Criminal Procedure Code as laid down in Ram Naresh Pandey’s
case (supra). I, however, find it difficult to construe
section 321 of the Code of Criminal Procedure, 1973 in the
light of the principles of administrative law.
Before leaving this case I may refer to another circum-
stance which is rather disturbing. The Review Petition was
filed before this Court after the retirement of Bahrul
Islam, J. Allegations of bias were made against him appar-
ently to get the petition admitted. But later on they were
withdrawn before the Court hearing the Review Petition
pronounced its order. But again in the course of the hearing
before this Bench an attempt was made to repeat the allega-
tion of bias against the learned Judge. But on objection
being taken by the Court, it was promptly withdrawn. This
conduct on the part of the appellant deserves to be depre-
cated.
The Review Petition was admitted after the appeal had
been dismissed only because Nandini satpathy’s case had been
subsequently reffered to a larger Bench to review the earli-
er decisions. When the
774
earlier decisions are allowed to remain intact, there is no
justification to reverse the decision of this Court by which
the appeal had already been dismissed. There is no warrant
for this extra-ordinary procedure to be adopted in this
case. The reversal of the earlier judgment of this Court by
this process strikes at the finality of judgments of this
Court and would amount to the abuse of the power of review
vested in this Court, particularly in a criminal case. It
may be noted that no other court in the country has been
given the power of review in criminal cases. I am of the
view that the majority judgement of Bahrul Islam and R.B.
Misra, JJ. should remain undisturbed. This case cannot be
converted into an appeal against the earlier decision of
this Court.
Having considered all aspects of the case, I agree with
the decision of Khalid, J. and dismiss the appeal filed
against the judgment of the High court.
KHALID, J. I regret I cannot persuade myself to agree
with the Judgment now pronounced by the learned Chief Jus-
tice, the last portion of which was received by me on 18.12.
1986. It is unfortunate that a discussion could not be held
about this case by the Judges who heard this case, after it
was reserved for Judgment in September, 1986. It was by a
sheer accident that this appeal came before a Constitution
Bench. Criminal Appeal Nos. 48 & 49 of 1983 were originally
directed to be posted before a Constitution Bench and this
Appeal was also directed to be heard by a Constitution Bench
because the same points were involved. Judgments are being
pronounced today in those appeals dismissing them. I have
agreed with the conclusion but not with the reasoning. Due
to paucity of time I have written only a short Judgment
there. This appeal has been pending for a long time. I am,
therefore, pronouncing a Judgment of my own hurriedly pre-
pared so that this matter can be given quietus.
2. This appeal had an unpleasant history. I am grieved
at the turn of events in this case. Even so, it is necessary
to have the utmost restraint in dealing with the said turn
of events, because what is involved here, is the credibility
of this Court as the Highest Court of the land. In two well
reasoned concurring Judgments, Beharul Islam, J. and R.B.
Misra, J. dismissed the appeal by their Judgments dated
December 16, 1982 and by an equally reasoned Judgment,
Tulzapurkar, J. dissented from the main Judgment and allowed
the appeal. These Judgments are reported in 1983 (2) SCR 61.
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One of the Judges (Baharul Islam,J) demited office on
13.1.1983. An application was filed on 17.1.1983, to review
the judgment. This application can only
775
be to review the concurring judgments. On 27.1.1983, an
application to raise additional grounds, specifically, based
on bias was filed. The review application was considered in
chambers on 13.4.1983. Notice was issued, returnable on
19.4.1983. In July, 1983, the matter was again considered in
chambers when allegation of bias was given up. In August,
1983, the matter was heard in open Court by Tulzapurkar, J.,
A.N. Sen, J. and R.B, Misra, J. On August 22, 1983, the
order worded as follows (reported in 1983(4) SCC 104) was by
A.N. Sen, J.
"1, therefore, admit the review petition and
direct the rehearing of the appeal."
The learned Judge who gave this order justified his conclu-
sion with the following observation:
"In view of the limited scope of the present
proceeding I do not consider it necessary to
deal at length with the various submissions
made by the learned counsel appearing on
behalf of the parties. In the view that I have
taken after a very anxious and careful consid-
eration of the facts and circumstances of this
case I am further of the opinion that it will
not be proper for me in this proceedings to
express any views on the same. Applying the
well-settled principles governing a review
petition and giving my very anxious and care-
ful consideration to the facts and circum-
stances of this case, I have come to the
conclusion that the review petition should be
admitted and the appeal should be re-heard. I
have deliberately refrained from stating my
reasons and the various grounds which have led
me to this conclusion. Any decision of the
facts and circumstances which, to my mind,
constitute errors apparent on the face of the
record and my reasons for the finding that
these facts and circumstances constitute
errors apparent on the face of the record. re-
sulting in the success of the review petition,
may have the possibility of prejudicing the
appeal which as a result of my decision has to
be re-heard."
In paragraph 15, the learned judge directed as follows:
"Accordingly, I further direct that the appeal
be re-heard immediately after the decision of
Nandani Satpathy case."
The other Judges agreed with this.
776
3. Thus the Bench that heard the review petition did not
disclose in the order, the reasons why re-hearing of the
appeal was ordered nor did it outline in the order, what
constituted errors apparent on the face of the record to
justify the order passed. By this order, the Bench did not
set aside the earlier judgment. All that was done was to
admit the review petition and to direct re-hearing of the
appeal. The one question seriously debated at the bar is
whether the Judgment sought to be reviewed was set aside or
not. It was forcefully contended that the earlier judgment
was not set aside and was still at large. This was met with
the plea that if it was not set aside, what is it that the
Court now hears? I will examine this contention presently.
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4. One incontrovertible fact is that the earlier was not
in terms set aside. Admitting a review petition is not the
same thing as setting aside the order, sought to be re-
viewed.
Order 47 Rule 1 C.P.C. deals with review in civil matters.
Article 137 of the Constitution is a special power with the
Supreme Court to review any judgment pronounced or order
made by it. An order passed in a criminal case can be re-
viewed and set aside only if there are errors apparent on
the record. In this case, we are left only to guess what
reasons or grounds persuaded the Judge to pass this order,
for, the learned Judge has deliberately refrained from
stating his reasons and ’various grounds’ in the order.
That the Judgment was not set aside can be concluded
from one important fact. One of the Judges who was a party
to this order (R.B. Misra, J) had earlier dismissed the
appeal with convincing reasons. If the Judgment was set,
aside by the order passed in the review petition, the
learned Judge would definitely have given his own reasons
for doing so by a separate order. This has not been done.
All that the order says is that the review petition had been
admitted. The direction to re-hear the appeal, therefore,
can only be to ascertain reasons to see whether the Judgment
need be set aside. In my view, with great respect, it would
be highly unfair to the learned Judge (R.B. Misra, J. ) to
contend that his earlier Judgment was set aside.
It is left to us now, the unpleasant task to unravel
this mystery and to divine the mind of man. I must confess
my failure in this task. After heating the lengthy argu-
ments, I have not been able to find any error apparent on
the face of the record in the earlier Judgment. The direc-
tion contained in the second order was to re-hear the ap-
peal. That wish has been set aside by the reviewing order
nor any error
777
discernable on the face of the record shown, in my consid-
ered view, the original order has to stand, which means that
the appeal has to be dismissed affirming it. This is the
short manner in which this appeal can be dismissed and I do
so. However, I do not propose to rest content with this
manner of disposal of the appeal.
5. This matter was heard at length. The stand taken by
the appellant is that the earlier Judgment has been set
aside. Therefore, it is only fair that the facts of the case
and the questions of law beating on them are also considered
since the matter has been placed before a bench of five
Judges.
6. The appeals referred to this Bench do not raise any
questions of constitutional law. There are decisions ren-
dered by Benches of three Judges and two Judges of this
Court wherein the scope of Section 321 of Criminal Procedure
Code (Section 494 of Old Criminal Procedure Code) has been
discussed at length. Two criminal appeals 48 and 49 of 1983
were referred to a Constitution Bench, originally. The Bench
that referred these appeals did not doubt the correctness of
such earlier Judgments. The reference order reads as fol-
lows:
"Special leave granted in both the matters. In
view of certain decisions referred to at the
time of the hearing of the petitions with
differing interpretations, it appears that in
order to clarify the legal issues connected
with power of withdrawal of criminal cases and
put them beyond pale of controversy, it is
better the matter be placed before Hon’ble the
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Chief Justice to place the matter before a
larger Bench of five Judges."
It is this order of reference and the direction by the
Bench that heard the review petition, to re-hear this appeal
immediately after the decision in Nandani Satpathy’s case,
criminal appeal Nos.48 and 49 of 1983, that has brought this
case also before this Bench. This is the accidental coinci-
dence about which reference was made by me in the opening
paragraph of this Judgment.
7. It is not necessary to deal at length with the facts
leading to this appeal. The background facts have been given
in detail in the Judgment sought to be reviewed. I do not,
therefore, think it necessary to encumber this Judgment with
all the facts. I shall refer only to the bare facts neces-
sary for the purpose of this Judgment.
778
8. The appellant and respondent No. 2 belonged to the
rival political parties. The appellant is a member of the
Bihar Legislative Assembly. Respondent No. 2 was the Chief
Minister of Bihar. Respondent No. 4 was a close associated
of Respondent No. 2. Respondent No. 3 started the Patna
Urban Co-operative Bank and became its Chairman. He and
respondent No. 2 were close friends. There were some irregu-
larities in the affairs of the bank. Proceedings were taken
to prosecute those connected with the bank for the irregu-
larities. The then Chief Minister (Respondent No. 2) ordered
the prosecution of the office bearers and staff of the bank
including its Honorary Secretary Shri K.P. Gupta, Manager
M.A. Haidari and the loan clerk.
Consequent upon a mid term poll to the Lok Sabha in
March, 1977, there was a change of Ministry at the Centre.
In April, 1977, the Patna Secretariat Non-Gazetted Employees
Association submitted a representation against the second
respondent to the Prime Minister and the Home Minister of
the Union Government. In June, the Government, headed by the
second respondent, was replaced by the Government headed by
Shri Karpoori Thakur. The Employees’ Association submitted a
copy of their representation to the new Chief Minister on
July 9, 1977, requesting him to enquire into the allegations
against the second respondent. After a detailed procedure
and obtaining requisite sanction from the Governor, a crimi-
nal case was instituted by the vigilance against the second
respondent and others. On 19.2.1979, a charge-sheet was
filed.
9. The charge-sheet filed by the State of Bihar against
the respondents on 19th February, 1979, was for offences
under Sections 420/466/471/109/120-B of I.P.C. and under
Sections 5(1)(a), 5(a)(b) & 5(1)(d) read with Section 5(2)
of the Prevention of Corruption Act, 1947. The charge
against the second respondent was that he, who at all mate-
rial times, was either a Minister or the Chief Minister of
Bihar abusing his position as a public servant, in conspira-
cy with the other accused, sought to interfere with the
criminal prosecution and surcharge proceedings against Nawal
Kishore Sinha and others with a view to obtain to himself
and to the other respondents pecuniary advantage to the
detriment of Patna Urban Cooperative Bank. The Cheif Judi-
cial Magistrate took cognizance of the case on 29.7.1979.
10. There was a change of ministry in Bihar in June,
1980 and the second respondent became the Chief Minister
again. A policy decision was taken on 10.6.1980, that crimi-
nal cases launched out of political vendetta and cases
relating to political agitation be with-
779
drawn. On 24.2.1981, the Government appointed Shri L,P.
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Sinha as a Special Public Prosecutor. On 25.2.1981, the
secretary to the Government of Bihar wrote a letter to the
District Magistrate informing him of the policy decision
taken by the Government to withdraw from prosecution of two
vigilance cases including the case with which we are con-
cerned. He was requested to take steps for the withdrawal of
the case. On 17th June, 1981, Shri Sinha made an application
under Section 32 1 of the Cr.P.C. to the Special Judge
seeking permission to withdraw from the prosecution of
respondent Nos. 2, 3 & 4, on four grounds; (a) Lack of
prospect of successful prosecution in the light of the
evidence, (b) Implication of the persons as a result of
political and personal vendetta, (c) Inexpediency of the
prosecution for the reasons of the State and public policy
and (d) Adverse effects that the continuance of the prosecu-
tion will bring on public interest in the light of the
changed situation. The learned Special Judge gave consent
sought, by his order dated 20th June, 1981. A criminal
revision was tiled before the High Court against this order.
This was dismissed on 14th September, 1981 and this dismiss-
al has given rise to this appeal.
11. The application for withdrawal and their order granting
consent are assailed on the following grounds:
(1) The withdrawal was unjustified on merits.
(2) It was against the principles settled by
this Court in various decisions governing the
exercise of power under Section 321 Cr. P.C.
(3) Neither the public prosecutor nor the
Special Judge applied their mind in the appli-
cation for withdrawal and in the order giving
consent.
(4) Shri L.P. Sinha was not competent to apply
for withdrawal since Shri A.K.Datta’s appoint-
ment to conduct the case under Section 24(8)
of the Cr.P.C. had not been cancelled.
(5) In the circumstances of the. case Shri
Sinha did not function independently but was
influenced and guided by the State Government
decision in the matter and the withdrawal was
vitiated for this reason.
12. I will dispose of question No. 4 first. It is not neces-
sary to
780
consider in detail the question whether Shri Sinha was
competent to make the application for withdrawal. The con-
tention is that Shri Sinha’s appointment is bad since the
earlier appointment of Shri Datta had not been set aside.
This case was pressed before the three Judges who heard the
appeal first and is repeated before us also. All the three
Judges who gave the Judgement in the case of Sheonandan
Paswan v. State of Bihar & Ors., [1983] 2 SCR 61, have
declined to accept the plea that Shri Sinha was not a compe-
tent public prosecutor since Shri Datt’s appointment had not
been cancelled. I adopt the reasons given in the judgment
and reject the plea repeated before us.
13. The real question that has to be answered in this
case is whether the executive function of the public prose-
cutor in applying for, and the supervisory functions of the
Court in granting consent to, the withdrawal have been
properly performed or not. The four remaining points enumer-
ated above virtually revolve around this question.
14. Section 321 needs three requisites to make an order
under it valid; (1) The application should be filed by a
public prosecutor or Assistant public prosecutor who is
competent to make an application for withdrawal, (2) He must
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be in charge of the case, (3) The application should get the
consent of the Court before which the case is pending.
I find that all the three requisites are satisfied here.
The question is whether the functions by the public prosecu-
tor and the Court were properly performed. At no stage was a
case put forward by any one that the application made by the
public prosecutor was either mala fide or that it was not in
good faith. There is no allegation of bias against the
Special Judge. The application filed by the public prosecu-
tor discloses the fact that he had gone through the case
diary and the relevant materials connected with the case and
that he came to the conclusion that in. the circumstances
prevailing at the time of institution of the case and inves-
tigation thereof, the case was instituted on the ground of
political vendetta and only to defame the’ fair image of
J.N. Misra. This statement of the public prosecutor has not
been challenged as borne out of any unwholesome motive. It
has not been made out or suggested that the public prosecu-
tor was motivated by improper considerations. The only
contention raised is that the reasons are not sufficient or
relevant.
15..The public prosecutor should normally be credited with
fair-
781
ness in exercise of his power under Section 321, when there
is no attack against him of having acted in an improper
manner. He had before him the State Government’s communica-
tion of the policy taken by it. He had before him the case
diary statements and other materials. He perused them before
filing the application. Thus his part under Section 321 in
this case has been performed strictly in conformity with
this Section. The question that remains then is whether the
grounds urged by him in support of withdrawal were suffi-
cient in law. The application clearly shows that Sh. Sinha
applied his mind to the facts of, the case. One would
normally not expect a more detailed statement in an applica-
tion for withdrawal than the one contained in the applica-
tion in question, when one keeps in view the scope of Sec-
tion 321 and the wide language it uses. The plea that there
was lack of application of mind by the public prosecutor has
only to be rejected in this case.
16. The Chief Judicial Magistrate was acting as the
Special Judge. In his order giving consent he has expressly
stated that he perused the relevant records of the case
before granting consent. This statement was not challenged
in the revision petition before the High Court. It has,
therefore, to be assumed that the Magistrate perused the
relevant records before passing the order. We must give due
credence to this statement by the Magistrate. There is no
other allegation against the Special Judge. Thus the func-
tion of the Special Judge was also performed in conformity
with the Section. The matter was taken in revision before
the High Court. The High Court dismissed the revision and
while doing so exercised its power properly because the
materials before the Court would justify only an order of
dismissal and not an order ordering retrial.
17. Section 32 1 gives the public prosecutor, the power
for withdrawal of any case to any stage before judgment is
pronounced. This pre-supposes the fact that the entire
evidence may have been adduced in the case, before the
application is ’made. When an application under Section 321
Cr.P.C. is made, it is not necessary for the Court to assess
the evidence to discover whether the case would end in
conviction of acquittal. To contend that the Court when it
exercises its limited power of giving consent under Section
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321 has to assess the evidence and find out whether the case
would end in acquittal or conviction, would be to re-write
Section 321 Cr.P.C. and would be to concede to the Court a
power which the scheme of Section 321 does not contemplate.
The acquittal or discharge order under Section 321 are not
the same as the normal final orders in criminal cases. The
conclusion will not be backed by a detailed discussion of
the evidence in the case of
782
acquittal or absence of prima facie case or groundlessness
in the case of discharge. All that the Court has to see is
whether the application is made in good faith, in the inter-
est of public policy and justice and not to thwart or stifle
the process of law. The Court, after considering these facts
of the case, will have to see whether the application suf-
fers from such improprieties or illegalities as to cause
manifest injustice if consent is given. In this case, on a
reading of the application for withdrawal, the order of
consent and the other attendant circumstances, I have no
hesitation to hold that the application for withdrawal and
the order giving consent were proper and strictly within the
confines of Section 321 Cr.P.C.
18. While construing Section 321, it is necessary to
bear in mind the wide phraseology used in it, the scheme
behind it and its field of operation. True, it does not give
any guideline regarding the grounds on which an application
for withdrawal can be made. But in applying it, we have to
bear in mind that it was enacted with a specific purpose and
it would be doing violence ’to its language and contents by
importing into the section words which are not there or by
restricting its operation by fetters in the form of condi-
tions and provisos. Its predecessor Section 494 had been on
the statute book from the inception of the Criminal Proce-
dure Code. When the code was amended in 1973, this Section
was re-numbered and the only change brought in this section
is to add the words "in charge of the case" while referring
to the Public Prosecutor or Assistant Public Prosecutor.
19. The old code contained a section which enabled the
Advocate General to inform the High Court before which a
case is pending at any stage before the return of the ver-
dict that he will not further prosecute the defendant upon
the charge. This was Section 333 Cr.P.C. The discretion of
the Advocate General under this Section was absolute. It was
not subject to any control. When the Advocate General in-
forms the High Court that he does not propose to proceed
with the prosecution, the Court has no alternative but to
stay all proceedings and to act in accordance with that
section. That section has now been deleted from the Code.
Public Prosecutors are lesser mortals and therefore the
discretion given to them by section 321 is less plenary and
is made subject to one limitation and that is the consent of
the Court before which the prosecution is pending.
Section 333, which was deleted consequent on the discon-
tinuance of original criminal trials in the High Court, has
still a beating, while considering the scope of Section 32 1
corresponding to Section
783
494 of the earlier code and a comparative study of the two
sections and their scope will be appropriate. Both the
Sections pertain to withdrawal of prosecutions though at
different level. A harmonious view should, in my view,
prevail in the reading of the two sections. Section 333 does
not give any discretion or choice to the High Court when a
motion is made under it. Such being the case, Section 321
must also be construed,as conferring powers within circum-
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scribed limits to the Court to refuse to grant permission to
the public prosecutor to withdraw the prosecution. If such a
harmonious view is not taken it would then lead to the
anomalous position that while under Section 333, a High
Court has to yield helplessly to the representation of the
Advocate General and stop the proceedings and discharge or
acquit the accused, the subordinate courts when moved under
Section 321 Cr.P.C. would have a power to refuse to give
consent for withdrawal of the prosecution if it is of opin-
ion that the case did not suffer from paucity of evidence.
The legislature would not have intended to confer greater
powers on the subordinate courts than on the High Court in
the exercise of powers under Section 494 of the old Code and
Section 333 respectively. It would, therefore, be just and
reasonable to hold that while conferring powers upon the
subordinate courts under Section 494 to give consent to a
public prosecutor withdrawing the prosecution, the legisla-
ture had only intended that the courts should perform a
supervisory function and not an adjudicatory function in the
legal sense of the term.
Section 321 reads as follows:
"321. Withdrawal from prosecution--The Public
Prosecutor or Assistant Public Prosecutor in
charge of a case may, with the consent of the
Court at any time before the Judgment is
pronounced, withdraw from the prosecution of
any person either generally or in respect of
any one or more of the offences for which he
is tried; and, upon such withdrawal:-
(a) if it is made before a charge has been
framed, the accused shall be discharged in
respect of such offence or offences;
(b) if it is made after a charge has been
framed, or when under this code no charge is
required, he shall be acquitted in respect of
such offence or offences." (Proviso omitted)
This Section enables the Public prosecutor, in charge of the
case to withdraw from the prosecution of any person at any
time before the
784
Judgment is pronounced, but this application for withdrawal
has to get the consent of the Court and if the Court gives
consent for such withdrawal the accused will be discharged
if no charge has been framed or acquitted if charge has been
framed or where no such charge is required to be framed. It
clothes the public prosecutor to withdraw from the prosecu-
tion of any person, accused of an offence both when no
evidence is taken or even if entire evidence has been taken.
The outer limit for the exercise of this power is "at any
time before the Judgment is pronounced".
20. The Section gives no indication as to the grounds on
which the Public Prosecutor may make the application, or the
considerations on which the Court is to grant its consent.
The initiative is that of the Public Prosecutor and what the
Court has to do is only to give its consent and not to
determine any matter judicially. The judicial function
implicit in the exercise of the judicial discretion for
granting the consent would normally mean that the Court has
to satisfy itself that the executive function of the Public
Prosecutor has not been improperly exercised, or that it is
not an attempt to interfere with the normal course of jus-
tice for illegitimate reasons or purposes.
21. The Court’s function is to give consent. This sec-
tion does not obligate the Court to record reasons before
consent is given. However, I should not be taken to hold
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that consent of the Court is a matter of course. When the
Public Prosecutor makes the application for withdrawal after
taking into consideration all the materials before him, the
Court exercises its judicial discretion by considering such
materials and on such consideration, either gives consent or
declines consent. The section should not be construed to
mean that the Court has to give a detailed reasoned order
when it gives consent. If on a reading of the order giving
consent, a higher Court is satisfied that such consent was
given on an overall consideration of the materials avail-
able, the order giving consent has necessarily to be upheld.
22. It would be useful to compare the scope of the
Court’s power under Section 321 with some other sections of
the Code. There are some provisos in the Code which relate
to the manner in which Courts have to exercise their juris-
diction in pending cases when applications are made for
their withdrawal or when the Court finds that there is no
ground to proceed with the cases. Sections 203,227,245,257
and 258 are some such sections. Section 203 of Criminal
Procedure Code empowers a Magistrate to dismiss a complaint
at the initial stage itself if he is of opinion that there
is no sufficient ground for proceeding. But,
785
before doing so, the Magistrate is called upon to briefly
record his reasons for so doing. The Section reads as fol-
lows:
"203. Dismissal of complaint.
If, after considering the statements on oath
(if any) of the complainant and of the wit-
nesses and the result of the enquiry or inves-
tigation (if any) under Section 202, the
Magistrate is of opinion that there is no
sufficient ground for proceeding, he shall
dismiss the complaint, and in every such case
he shall briefly record his reasons for so
doing."
Section 245(1) deals with the power of the Magistrate in
discharging an accused when no case has been made out
against him. However, the Section imposes an obligation on
the Magistrate to record his reasons before discharging the
accused, Section 245(1) reads as follows:
"If, upon taking all the evidence referred to
in Section 244, the Magistrate considers, for
reasons to be recorded, that no case against
the accused has been made out which, if unre-
butted, would warrant his conviction, the
Magistrate shall discharge him."
This section gives the Magistrate, in cases where he consid-
ers that the accused should be discharged, a power to dis-
charge him but the power is lettered by an obligation to
record his reasons for doing so. If reasons are not recorded
in an order of discharge that would be violative of the
mandate of the Section.
Section 245(2) enables the Magistrate to discharge an
accused "at any previous stage" of the case also if he
considers that the charge against an accused is groundless.
Sub-section (1) deals with a stage when all evidences re-
ferred to in Section 244 is taken. Section 244 deals with
evidence in any warrant case instituted otherwise than on a
police report. It.is when all such evidence has been taken
that the Magistrate can discharge the accused under Section
245(1), while Section 245(2) deals with the case in which
the evidence referred to in Section ’244 has not been taken.
Here again the order of discharge by Magistrate has to be
supported with reasons for discharge. Section 245(2) reads
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as follows:
786
"Nothing in this section shall be deemed to prevent a Magis-
trate from discharging the accused at any previous stage of
the case if, for reasons to be recorded by such Magistrate,
he considers the charge to be groundless."
An order of discharge under either of the two sub-sections
can be sustained only if the Magistrate has recorded his
reasons for discharge.
Section 257 in chapter 20, deals with trial of summons
cases by a Magistrate and provides for the withdrawal of
complaints. It reads as follows:
"257. Withdrawal of Complaint--If a complain-
ant, at any time before a final order is
passed in any case under this Chapter, satis-
fies the Magistrate that there are sufficient
grounds for permitting him to withdraw his
complaint against the accused, or if there be
more than one accused, against all or any of
them, the Magistrate may permit him to with-
draw the same, and shall thereupon acquit the
accused against when the complaint is so
withdrawn."
The wording of this section is also significantly different
from Section 32 1. When a complainant wants to withdraw his
complaint against the accused, the Magistrate can permit him
to withdraw the same and acquit the accused against whom the
complaint is so withdraw, only when he satisfies the Magis-
trate that there are sufficient grounds for permitting him
to withdraw his complaint. In. other words, the complainant
cannot withdraw his complaint as he pleases nor can the
Magistrate permit him to do so unless the Magistrate satis-
fies himself that there are sufficient grounds to withdraw
the complaint. This section thus contemplates an order
disclosing sufficient grounds to satisfy the Magistrate to
accord permission to withdraw the complaint. The power
conferred on a Magistrate under this Section is in order to
ensure that a complainant does not abuse the process of law
by filing a false or vexatious complaint against another and
withdrawing the complaint after adequately embarrassing or
harassing the accused so as to escape the consequences of a
complaint or suit for malacious prosecution by the accused
in the complaint.
Section 258 Cr.P.C. in the same chapter deals with the
power of Magistrate to stop proceedings in certain cases
which can also be usefully read.
787
"258. Power to stop proceedings in certain
cases-In any summons case instituted otherwise
than upon complaint, a Magistrate of the first
class or, with the previous sanction of the
Chief Judicial Magistrate, any other Judicial
Magistrate, may, for reasons to be recorded by
him, stop the proceedings at any stage without
pronouncing any judgment and where such stop-
page of proceeding is made after the evidence
of the principal witness has been recorded,
pronounce a judgment of acquittal, and in any
other case, release the accused, and such
release shall have the effect of discharge."
This section deals with the stopping of proceedings at any
stage without pronouncing any judgment and acquitting or
discharging the accused as the case may be, but the section
mandates the Magistrate to record his reasons for doing so.
The Magistrate, cannot stop proceedings under this section
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without recording his reasons. Even in a Sessions case the
Sessions Court cannot exercise its powers of discharge under
Section 227 without recording reasons therefore. Section 227
is in the following terms:-
"If, upon consideration of the record of the
case and the documents submitted therewith,
and after hearing the submissions of the
accused and the prosecution in this behalf,
the Judge considers that there is not suffi-
cient ground for proceeding against the ac-
cused, he shall discharge the accused and
record his reasons for so doing."
It is thus clear that the scheme of the above Sections
differ from Section 321.
The scope of Section 321 can be tested from another
angle and that with reference to Section 320 which deals
with "compounding of offences". Both these Sections occur in
Chapter 24 under the heading "General Provisions as to
Enquiries and Trials". Section 320(1) pertains to compound-
ing of offences, in the table, which are not of a serious
nature while Section 320(2) pertains to offences of a
slightly serious in nature but not constituting grave
crimes. The offences in the table under Section 320(1) may
be compounded by the persons mentioned in the third column
of the table without the permission of the Court and those
given in the Table-II, under Section 320(2) can be compound-
ed only with the permission of the Court. Under Subsection
4(a), when a person who would otherwise be competent to
compound an offence under Section 320, is under the age of
18 years
788
or is an idiot or a lunatic, any person competent to con-
tract on his behalf may, with the permission of the Court,
compound such offence. Sub-section 4(b) provides that when a
person who would otherwise be competent to compound an
offence under this Section is dead, the legal representa-
tive, as defined in the Code of Civil Procedure, of such
person may, with the consent of the Court, compound such
offence.
These two sub-sections use the expression "with the
permission of the Court" and "with the consent of the Court"
which are more or less ejusden generis. On a fair reading of
the above-mentioned Subsections it can be safely presumed
that the Sections confer only a supervisory power on the
Court in the matter of compounding of offences. in the
manner indicated therein, with this safeguard that the
accused does not by unfair or deceitful means, secure a
composition of the offence. Viewed thus I don’t think that a
plea can be successfully put forward that granting permis-
sion or giving consent under Subsection 4(a) or 4(b) for
compounding of an offence, the Court is enjoined to make a
serious detailed evaluation of the evidence or assessment of
the case to be satisfied that the case would result in
acquittal or conviction. It is necessary to bear in mind
that an application for compounding of an offence can be
made at any stage. Since Section 321 finds a place in this
chapter immediately after Section 320, one will be justified
in saying that it should take its colour from the immediate-
ly preceding Section and in holding that this Section, which
is a kindred to Section 320, contemplates consent by the
Court only in a supervisory manner and not essentially in an
adjudicatory manner, the grant of consent not depending upon
a detailed assessment of the weight or volume of evidence to
see the degree of success at the end of the trial. All that
is necessary for the Court to see is to ensure that the
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application for withdrawal has been properly made, after
independent consideration, by the public prosecutor and in
furtherance of public interest.
I referred to these sections only by way of illustra-
tion to emphasis the distinction between section 321 and
other sections of the Code dealing with orders withdrawing
criminal cases or discharging or stopping proceedings. My
purpose in referring to the above sections is only to show
that Section 321, in view of the wide language it uses,
enables the public prosecutor to withdraw from the prosecu-
tion any accused, the discretion exercisable under which is
lettered only by a consent from Court on a consideration of
the materials before it and that at any stage of the case.
The Section does not insists upon a reasoned order by the
Magistrate while giving consent. All that is
789
necessary to satisfy the section is to see that the public
prosecutor acts in good faith and that the Magistrate is
satisfied that the exercise of discretion by the public
prosecutor is proper.
23. There is no appeal provided by the Act against an
order giving consent under Section 321. But the order is
revisable under Section 397 of the Criminal Procedure Code.
Section 397 gives the High Court or the Sessions Judge
jurisdiction to consider the correctness, legality or pro-
priety of any finding, sentence or order and as to the
regularity of the proceedings of any inferior Court. While
considering the legality, propriety or the correctness of a
finding or a conclusion, normally, the revising Court does
not dwell at length into the facts and evidence of the case.
The Court in revision considers the materials only to satis-
fy itself about the correctness, legality and propriety of
the findings, sentence or order and refrains from substitut-
ing its own conclusion on an elaborate consideration of
evidence.
An order passed under Section 321 comes to this Court by
special leave, under Article 136 of the Constitution of
India. The appeal before us came thus. It has been the
declared policy of this Court not to embark upon a roving
enquiry into the facts and evidence of cases like this or
even an order against discharge. This Court will not allow
itself to be converted into a Court of facts and evidence.
This Court seldom goes into evidence and facts. That is as
it should be. Any departure from this salutary self imposed
restraint is not a healthy practice and does not commend
itself to me. It is necessary for this Court to remember
that as an apex Court, any observation on merits or on facts
and evidence of a case which has to go back to the Courts
below will seriously prejudice the party affected and it
should be the policy of this Court not to tread upon this
prohibited ground and invite unsavory but justifiable criti-
cism. Is this Court to assess the evidence to find out
whether there is a case for acquittal or conviction and
convert itself into a trial Court? Or is this Court to order
a retrial and examination of hundred witnesses to find out
whether the case would end in acquittal or conviction?
Either of these conclusions in the case is outside the scope
of Section 321. This can be done only if we rewrite Section
321.
24. Section 321 Cr.P.C. is virtually a step by way of
composition of the offence by the State. The State is the
master of the litigation in criminal cases. It is useful to
remember that by the exercise of functions under Section
321, the accountability of the concerned person or persons
does not disappear. A private complaint can still be filed
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if a party is aggrieved by the withdrawal of the prosecution
but running the
790
possible risk of a suit of malicious prosecution if the
complaint is bereft of any basis.
25. Since Section 32 1 does not give any guideline
regarding the grounds on which a withdrawal application can
be made, such guidelines have to be ascertained with refer-
ence to decided cases under this section as’ well as its
predecessor Section 494. I do not propose to consider all
the authorities cited before me for the reason that this
Court had occasion to consider the question in all its
aspects in some of its decisions. Suffice it to say that in
the Judgments rendered by various High Courts, public poli-
cy, interests of the administration, inexpediency to proceed
with the prosecution for reasons of State and paucity of
evidence were considered good grounds for withdrawal in many
cases and not good grounds for withdrawal in certain other
cases depending upon the peculiar facts and circumstances of
the cases in those decisions. AIR 1932. Cal. 699 (Giribala
Dasi v. Mader Gazi), AIR 1943 Sind 161 (Emperor v. Sital
Das), AIR 1936 Cal. 356 (Marihar Sinha v. Emperor), AIR 1949
Patna 233 (The King v. Moule Bux and Ors.) AIR 1952 Raj. 42
and 1933 Privy Council 266 are some of the cases which were
brought to our notice.
Ram Naresh Pandey’s case reported in 1957 SCR 279 is a
land mark case which has laid down the law on the point with
precision and certainty. In this decision the functions of
the Court and the Public Prosecutor have been correctly
outlined. While discussing the role of the Court, this Court
observed:
"His discretion in such matters has necessari-
ly to be exercised with. reference, to such
material as is by then available and it is not
a prima facie judicial determination of any
specific issue. The Magistrate’s functions in
these matters are not only supplementary, at a
higher level, to those of the executive but
are intended to prevent abuse. Section 494
requiring the consent of the Court for with-
drawal by the public prosecutor is more in
line with this scheme, than with the provi-
sions of the Code relating to inquiries and
trials by Court. It cannot be taken to place
on the Court the responsibility for a prima
facie determination of the triable issue. For
instance the discharge that results therefrom
need not always conform to the standard of "no
prima facie case" under Sections 209(1) and
253(1) or of ’groundlessness’ under Sections
209(2) and 253(2). This is not to say that a
consent is to be lightly given on the applica-
X X
tion of the
791
public prosecutor, without]a careful and
proper scrutiny of the grounds on which the
application for consent is made."
This decision was approved by this Court in M.N. Sankarana-
rayanan Nair v. P.V. Balakrishnan & Ors., [1972] 2 SCR 599
as is seen at page 606:
" ..... In the State of Bihar v. Ram Naresh
Pandey (1957 SCR 279) it was pointed out by
this Court that though the Section does not
give any indication as to the ground on which
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the Public Prosecutor may make an application
on the consideration of which the Court is to
grant its consent, it must none-the-less
satisfy itself that the executive function of
the Public Prosecutor has not been improperly
exercised and that it is not an attempt to
interfere with the normal course of justice
for illegitimate reasons or purposes ..... "
26. I will now briefly refer to some other cases cited to
understand how Courts considered the scope of Section 321
depending upon the facts of each case.
In the case of Bansi Lal v. Chandan Lal, AIR 1976 SC 370
this Court followed its earlier decision reported in [1972]
2 SCR 599 which in turn followed [1957] SCR 279 and declined
consent when withdrawal ’was sought on the ground that the
prosecution did not want to produce evidence and continue
the criminal matter against the accused. The Sessions Judge
gave his consent as it appeared to him "futile to refuse
permission to the State to withdraw prosecution". This
consent was set aside because reluctance to produce evidence
was held to be not sufficient ground for withdrawal.
In State of Orissa v. Chandrika Mohapatra & Ors., [1977]
1 SCR 335 the application for withdrawal was made on two
grounds: (i) that it was considered inexpedient to proceed
with the case; (ii) that the evidence collected during
investigation was meagre and no useful purpose would be
served by proceedings with the case against the accused. The
Magistrate gave consent holding that compelling the State to
go on with the prosecution would involve unnecessary expend-
iture and waste of public time. This Court upheld the con-
sent and held that meagre evidence was a legitimate ground
for withdrawal. The following observation at page 338 is
useful for our purpose on an important aspect- In that case,
as in this case, the Magistrate had clearly stated in his
order that he was giving consent after going through the
materials placed before him. This is how the Court summed up
its finding:
792
"It is difficult for us to understand how the
High Court could possibly observe in its order
that the Magistrate had not perused the case
diary when in terms the learned Magistrate has
stated in his order that he had read the case
diary and it was after reading it that he was
of the opinion that the averment of the prose-
cution that the evidence was not sufficient
was not iII-founded. Then again it is diffi-
cult to comprehend how the High Court could
possibly say that the learned Magistrate
accorded consent to the withdrawal of the
prosecution on the ground that it was inexpe-
dient to proceed with the case, when, in so
many terms, the learned Magistrate rejected
that ground and granted consent only on the
second ground based on inadequacy of
evidence .."
When the Magistrate states in his order that he has consid-
ered the materials, it is not proper for this Court not to
accept that statement. The proper thing to do is to hold
that the Magistrate gave consent on objective consideration
of the relevant aspects of the case. It would be acting
against the mandate of Section 32,1 to find fault with the
Magistrate in such cases, unless the order discloses that
the Magistrate has failed to consider whether the applica-
tion is made in good faith, in the interest of public policy
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and justice and not to thwart or strifle the process of law.
In Balwant Singh v. State of Bihar, [1978] 1 SCR 604
this Court felt unhappy when the public prosecutor and the
Magistrate had surrendered their discretion, but still
declined to grant leave under Article 136 and the withdrawal
stood confirmed.
In Subhash Chander v. State, [1980] 2 SCR 44, this Court
upheld the consent given for withdrawal since a fresh inves-
tigation had revealed that the case was framed by the con-
cerned Police Officers with ulterior motives. This Court
observed that two relevant matters to be considered about
the consent are: (1) whether the considerations are germane
and (2) whether actual decision was taken by the public
prosecutor or he only obeyed the orders dictated to him by
others.
in Rajendra Kumar Jain v. State, [1980] 3 SCR 982, this
Court had to deal with two sets of cases--one relating to
the Baroda Dynamite case and the other the Bhiwam Temple
Demolition case. In that case, this Court summarised eight
propositions which are given in the judgment rendered by
Tulzapurkar, J. in Sheonandan Paswan v. State of Bihar &
Ors., This Court observed that paucity of evidence is not
793
the only ground on which the Public Prosecutor may withdraw
from the prosecution, though that is a traditional ground
for withdrawal. Political purposes and political vendetta
afford sufficient ground for withdrawal.
27. All the above decisions have followed the reasoning
of Ram Naresh Pandey’s case and the principles settled in
that decision were not doubted.
It is in the light of these decisions that the case on
hand has to be considered. I find that the application for
withdrawal by the Public Prosecutor has been made in good
faith after careful consideration of the materials placed
before him and the order of consent given by the Magistrate
was also after due consideration of various details, as
indicated above. It would be improper for this Court, keep-
ing in view the scheme of Section 321, to embark upon a
detailed enquiry into the facts and evidence of the case or
to direct re-trial for that would be destructive of the
object and intent of the Section.
Now, I propose to quickly rush through the facts of the
case to make the discussion complete.
28. When the matter was first heard by this Court, the
documents produced were profusely referred to by counsel on
both sides. This consisted of also affidavits filed by both
sides. Baharul Islam, J, after discussing the questions of
law examined the factual aspect also. Referring to Shri
Venugopalan’s arguments (the appellants’ counsel then), on
facts, the learned Judge observed as follows:
"The learned Counsel fairly concedes that he
does not take much reliance or Oral evidence
but takes strong reliance on two pieces of
documentary evidence, namely alleged creation
of forged documents by Dr. Mishra and the
confessional statement of Haidari implicating
Dr. Mishra."
On this concession, the learned Judge proceeded to consider
the factual details pressed by th
1
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