STATE REP.BY INSEPCTOR OF POLICE,CHENNAI vs. N.S. GNANESWARAN

Reportable IN THE SUPREME COURT OF INDIA CRIMINAL APPELLATE JURISDICTION CRIMINAL APPEAL NO. 456 OF 2008 STATE REPRESENTED BY INSPECTOR OF POLICE, CHENNAI. … APPELLANT Vs. N.S. GNANESWARAN … RESPONDENT O R D E R This appeal is directed against the order dated th 25 November, 2003 passed by the High Court of JUDGMENT Judicature at Madras in Crl.M.P.No.2302 of 2003 filed under Section 482 of Criminal Procedure Code, (hereinafter referred to as ‘Cr.P.C.’), for quashing the FIR in Cr.No.RC MAI 2002A 0052 dated 11.10.2002 urging various legal contentions. Page 1 2 2. For the purpose of appreciating the rival legal contentions urged on behalf of the parties the

Sections 420, 467, 468 and 471, Indian Penal Code, read with Section 13(2) and 13(1)(d) of the Prevention of Corruption Act, 1988. The respondent had challenged the said FIR registered against him and sought for quashing of the same. The principal legal contention urged before the High Court in the Cr.M.P. filed under Section 482 of Cr.P.C. to quash the FIR proceedings is that sub-section (2) of Section 154, Cr.P.C. contemplate that a copy of such information recorded shall be issued forthwith, free of cost to the informant, is a mandatory requirement. On the basis of the said JUDGMENT legal contention the respondent has sought for quashing the same. The said legal contention is accepted by the High Court and recorded a finding on the basis of the perusal of the information sought to have been received by the appellant herein is bald in the sense that application under Section 154, Cr.PC. has no place nor could it be said that the case has been registered in accordance with law. Therefore, it came to the Page 2 3 conclusion that it is not a case registered in accordance with law and such a case is registered,

this reason the High Court has quashed the FIR. The correctness of the said findings assigned by the learned Judge is under challenge in this appeal raising the following issues:-- I) Whether the High Court in the facts and circumstances of the case was justified in allowing the petition under Section 482, Cr.P.C.? II) Whether an FIR registered on the basis of recorded information disclosing commission to cognizable offence and under Section 154(1), Cr.P.C. for the purposes of conducting investigation of the case under Sections 156 and 157, Cr.P.C. is permissible in law? JUDGMENT III) Whether the High Court in its impugned decision has correctly interpreted Section 154, Cr.P.C. with reference to its ambit and scope of and has correctly read the said Section in juxta-position with Sections 156 and 157 Cr.P.C? 3. In support of the said issues, the learned senior counsel Mr.K. Radhakrishnan, appearing on behalf of the Appellant, has placed strong reliance upon the CBI (Crime) Manual of 2005 -- Chapter 8 Page 3 4 regarding registration of Complaints and Source of Information, which Manual has been prepared as per the observations made by a larger Bench decision of this Court in the case of Vineet Narain & Ors. vs. Union of India & Anr. [(1998) 1 SCC 226]. The learned senior counsel has invited our attention to paras 8.26 and 8.27 which provisions state that collection of source of information must be submitted in writing giving all available details of specific acts of omissions and commissions and copies of documents collected discreetly. The verification of SIRs must begin only after the competent authority has approved its registration. At this stage regular SIR number will be assigned to the SIR which will also be entered in the Source of information sub-module of CRIMES Module with all other details. As per para 8.28, the SIR may be JUDGMENT classified as SECRET. These files must be maintained by the S.P. in his office. In view of the aforesaid procedure required to be followed by the appellant herein as per the CBI Manual, which is in conformity with the observations made by the decision of this Court such procedure is required to be followed by the appellant Investigating Agency. Therefore, the learned senior counsel submits that the procedure as contemplated under Page 4 5 Section 154, Cr.P.C. is not required to be followed. Learned senior counsel has also placed

that on receipt of a complaint or after verification of information or on completion of a Preliminary Enquiry taken up by CBI if, it is revealed that prima facie a cognizable offence has been committed by a person and the matter is fit for investigation to be undertaken by CBI, a First Information Report should be recorded under Section 154, Cr.P.C. and investigation shall be taken up. While considering the registration of an FIR, it should be ensured that at least the main offence(s) have been notified under Section 3 of the Delhi Special Police Establishment Act, 1946. Para 10.2 JUDGMENT further provides that while registering an FIR the legal requirements of section 154, Cr.P.C. should be fully complied with. Further learned senior counsel has placed reliance upon the plethora of judgments of this Court in justification of the appeal to set aside the impugned order passed by the High Court and placed strong reliance upon the judgment of this Court in the case of State, represented by Inspector of Police Vigilance and Page 5 6 Anti Corruption, Tiruchirapalli, Tamil Nadu vs. V.Jayapaul [AIR 2004 SC 2684] wherein the this Court after referring to the earlier decisions rendered in Bhagwan Singh vs. State of Rajasthan [AIR 1976 SC 985] and Megha Singh vs. State of Haryana [AIR 1995 SC 2339] and after interpreting Sections 153, 154, 156, 157 of Cr.P.C. regarding investigation of cognizable offence(s) the Police Officer who recorded the FIR on the basis of information received, registered suspected crime, is competent to take up investigation and submit his final report. It is not open for the accused or the person against whom the case is registered to allege bias or prejudice to be inferred for quashing the proceedings. In paragraph 4 of the aforesaid judgment, strong reliance has been placed in support of the conclusion that there is nothing JUDGMENT in the provision of Cr.P.C. which precludes the Inspector of Police, Vigilance from taking up the investigation if Police Officer prepares the FIR on the basis of the information received by him and registered the suspected crime does not in our view, disqualify him from taking up the investigation of the cognizable offence. A suo-motu move on the part of the Police Officer to investigate a cognizable offence impelled by the Page 6 7 information received from some sources is not outside the purview of the provisions contained in

the aforesaid provisions which were clarified by this Court in the case of State of U.P. vs. Bhagwant Kishore Joshi [AIR 1964 SC 221]. The learned senior counsel has also placed reliance upon three judge bench decision of this Court in Lalita Kumari vs. State of U.P. [(2012) 4 SCC 1 para 93]. In support of his legal contention he has urged that the said decision is not applicable to the fact situation therefore this Court need not await the decision of the larger Bench of this Court on the legal question referred to in that case. Therefore, he has urged this Court to allow JUDGMENT the appeal by setting aside the impugned order of the High Court. The learned senior counsel has placed reliance on various catena of decisions of this Court which we do not propose to refer to the same in view of the decision of this Court in the case of State, rep.by Inspector of Police, Vigilance and Anti-Corruption, Tiruchirapalli (supra). Page 7 8 4. On the other hand, learned counsel Mr.S.D. Dwarakanath, appearing on behalf of the respondent,

U.P. (supra) in justification of awaiting the decision by the larger Bench wherein three Judge bench decision of this Court in the aforesaid case after referring to the seven Judge bench decision of the Constitutional Bench in the case of Maneka Gandhi vs. Union of India, reported in AIR 1978 SC 597, has held that the procedure required to be followed under Section 154, is mandatory to be followed. This court in the said case has held that if the mandatory procedure under Section 154, Cr.P.C. is not followed it will be in violation of Article 21 of the Constitution of India. JUDGMENT Therefore, he submits that the impugned order may not be interfered with by this Court. In view of the undisputed facts that the mandatory procedure under Section 154, Cr.P.C. is not followed by the appellant herein thereby the High Court of Madras has rightly assigned the reason and held that non compliance of the mandatory provisions of Section 154 (1) & (2) of Cr.P.C. has vitiated the proceedings and accordingly quashed the same in Page 8 9 exercise of inherent powers of the High Court under Section 482, Cr.P.C.

correctness of the impugned order to find out as to whether it warrants our interference with the impugned order in this appeal. 6. The High Court has not recorded the finding that if the contents of the FIR registered against the respondent are taken on its face value do not disclose the cognizable offence and thus, the FIR was liable to be quashed. Rather it has been quashed merely on technical ground that the copy of JUDGMENT the said FIR after being lodged had not been given to the informant. The judgment impugned herein is required to be examined as to whether giving the copy of the FIR to the informant is mandatory and if not what is the prejudice caused to the respondent/accused as the informant has not raised the grievance of non-supply of the copy of the FIR Page 9 10 nor it has been the case of the respondent that he sought the copy of the FIR and was not given.

touchstone of doctrine of prejudice. Thus, unless in a given situation, the aggrieved makes out a case of prejudice or injustice, some infraction of law would not vitiate the order/enqury/result. In judging a question of prejudice, the court must act with a broad vision and look to the substance and not to technicalities. (Vide: Jankinath Sarangi v. State of Orissa, (1969) 3 SCC 392; State of U.P. v. Shatrughan Lal & Anr., AIR 1998 SC 3038; State of JUDGMENT A.P. v. Thakkidiram Reddy & Ors., (1998) 6 SCC 554; and Debotosh Pal Choudhury v. Punjab National Bank & Ors., (2002) 8 SCC 68). 8. In Dahari & Ors. v. State of Uttar Pradesh , (2012) 10 SCC 256, this Court considered the prejudice in a trial where charges had not properly been taken care of. In the said case the trial Page 10 11 commenced against five accused under Section 302 read with Section 149 IPC and they stood convicted

conviction was maintained under Section 302 read with Section 149 IPC. This Court held that in such a factual situation, the High Court could most certainly has convicted the appellant under Section 302 read with Section 34 IPC and as no prejudice has been shown to have been caused to them, the question of interference could not arise. 9. In the instant case, learned counsel for the JUDGMENT respondent is not able to show any prejudice caused to him for not supplying the copy of the FIR to the informant. 10. While determining whether a provision is mandatory or directory, in addition to the language used therein, the Court has to examine the context Page 11 12 in which the provision is used and the purpose it seeks to achieve. It may also be necessary to find

injustice to persons relating thereto from its application. The law which creates public duties is directory but if it confers private rights it is mandatory. 11. A Constitution Bench of this Court, in State of   U.P. & Ors. v. Babu Ram Upadhya , AIR 1961 SC 751, considered the issue and held as under:– JUDGMENT “For ascertaining the real intention of the Legislature, the Court may consider, inter alia, the nature and the design of the statute, and the consequences which would follow from construing it the one way or the other, the impact of other provisions whereby the necessity of complying with the provisions in question is avoided, the circumstance, namely, that the statute provides for a contingency of the non- compliance with the provisions, the fact that the non-compliance with the provisions is or is not visited by some penalty , the serious or trivial consequences that flow therefrom, and, above all, whether the object of the legislation will be defeated or furthered.” (emphasis added) Page 12 13

12. In Sharif-Ud-Din Vs. Abdul Gani Lone , AIR 1980 SC 303, this Court, while considering the provisions of sub-section (3) of Section 89 of the J&K Representation of People Act, 1957, held that the difference between a mandatory and directory rule is that the former requires strict observance while in the case of latter, substantial compliance of the rule may be enough and where the statute provides that failure to make observance of a JUDGMENT particular rule would lead to a specific consequence, the provision has to be construed as mandatory. 13. In M/s. Rubber House v. M/s. Excellsior Needle Industries Pvt. Ltd. , AIR 1989 SC 1160, this Court considered the provisions of the Haryana (Control Page 13 14 of Rent & Eviction) Rules, 1976, which provided for mentioning the amount of arrears of rent in the

provision for the reason that non-compliance of the rule, i.e. non-mentioning of the quantum of arrears of rent did involve no invalidating consequence and also did not visit any penalty. 14. In B.S. Khurana & Ors. v. Municipal Corporation of Delhi & Ors. , (2000) 7 SCC 679, this Court considered the provisions of the Delhi Municipal Corporation Act, 1957, particularly those dealing JUDGMENT with transfer of immovable property owned by the Municipal Corporation, and held to be mandatory for the reason that the effect of non-observance of the statutory prescription would vitiate the transfer. 15. In State of Haryana & Anr. v. Raghubir Dayal , (1995) 1 SCC 133, this Court observed as under:– Page 14 15

Chavare & Ors. , AIR 1975 SC 915, this Court held that where “the imperative language, the beneficent purpose and importance of the provisions for efficacious implementation of the general scheme of the Act, all unerringly lead to the conclusion that they were intended to be mandatory, neglect of any of those statutory requisites would be fatal.” 17. The law on this issue can be summarised that in JUDGMENT order to declare a provision mandatory, the test to be applied is as to whether non-compliance of the provision could render entire proceedings invalid or not. Whether the provision is mandatory or directory, depends upon the intent of Legislature and not upon the language for which the intent is clothed. But the circumstance that Legislature has Page 15 16 used the language of compulsive force is always of great relevance.

conclusion that the provisions of Section 154(2) are merely directory and not mandatory as it prescribes only a duty to give the copy of the FIR. 18. In Shashikant vs. Central Bureau of Investigation & Ors. [(2007) 1 SCC 630], while referring to its earlier decision in Vineet Narain v. Union of India, reported in (1998) 1 SCC 226 para 58, this Court has held as under: JUDGMENT “58.1.12. The CBI Manual based on statutory provisions of the Cr.P.C. provides essential guidelines for the CBI’s functioning. It is imperative that the CBI adhere scrupulously to the provisions in the Manual in relation to its investigative functions, like raids, seizure and arrests;. Any deviation from the established procedure should be viewed seriously and severe disciplinary action taken against the officials concerned.” Page 16 17 19. The CBI has prepared the Crime Manual of 2005 which is considered by this Court in the case of Nirmal Singh Kahlon vs. State of Punjab & Ors. [(2009) 1 SCC 441, wherein the apex court at para 30 has laid down the principle as under:-- “30. Lodging of a first information report by CBI is governed by a manual. It may hold a preliminary inquiry; it has been given the said power in Chapter VI of the CBI Manual. A prima facie case may be held to have been established only on completion of a preliminary enquiry.” 20. As per the said Manual, procedure is laid down under Chapter 8 regarding Collection of Source Information under paras 8.26, 8.27 and 8.28 which read as under:- 8.26 As a part of their duty and in terms of annual programme of work, all Investigating and Supervisory Officers are required to collect quality information regarding graft, misuse of official position, possession of disproportionate assets, fraud, embezzlement, serious economic offences, illegal trading in narcotics and psychotropic substances, counterfeiting of currency, smuggling of antiques, acts endangering wildlife and environment, cyber crimes, serious frauds of banking/financial institutions, smuggling of arms & ammunition, forgery of passports etc. and other matters falling JUDGMENT Page 17 18

8.27 The source information once developed must be submitted in writing giving all available details with specific acts of omissions and commissions and copies of documents collected discreetly. The internal vigilance enquiries or departmental enquiry reports should normally not be used as basis for submitting the Source Information. The SP concerned after satisfying himself that there is prima facie material meriting action by CBI and further verification is likely to result in registration of a regular case, would order verification if it falls within his competence. In the cases which are within the competence of higher officers, he will forward his detailed comments to the DIG and obtain orders from superior officer competent to order registration. The verification of SIRs must begin only after the Competent Authority has approved its registration. At this stage a regular SIR number will be JUDGMENT Page 18 19

21. Further, the learned senior counsel also placed reliance upon the procedure required to be followed by the CBI laid down under Chapter 10 regarding registration and FIR by following the procedure under para 10.1 which provides for Registration and First Information Report on receipt of a complaint or after verification of an information or on completion of a preliminary enquiry taken up by CBI if it is revealed that prima facie a cognizable offence has been committed JUDGMENT and the matter is fit for investigation to be undertaken by CBI, an FIR should be recorded under Section 154 Cr.P.C. and investigation be taken up. While considering registration of an FIR, it should be ensured that at least the main offence(s) have been notified under Section 3 of the Delhi Special Police Establishment Act and further the rightly placed reliance upon the judgment of State, represented by Inspector of Police, Vigilance and Page 19 20 Anti-Corruption, Tiruchirapalli (supra) wherein this Court, at para 4, has made the following

JUDGMENT 22. In Shashikant vs. Central Bureau of Investigation & Ors. (supra), in para 20, after referring to its earlier decision in State of U.P. v. Bhagwant Kishore Joshi referring to the provisions of Section 5-A of the Prevention of Corruption Act, this Court has opined: Page 20 21

JUDGMENT ‘….hears something of interest affecting the public security and which puts him on the alert; makes discreet enquiries, takes soundings and sets up informants and is in the second stage of qui vive or look out; and finally gathers sufficient information enabling him to bite upon something definite and that is the stage when first information is recorded and when investigation starts.’ Page 21 22

23. The said observations are made in the above JUDGMENT decisions on the basis of the clarification made by this Court regarding the provisions of Section 154, 156 and 157, Cr.P.C. in the case of State of U.P. vs. Bhagwant Kishore Joshi (supra) upon which rightly placed reliance in justification of the procedure followed by CBI regarding the registration of FIR the same is traceable to the procedure laid down in the Crime Manual 2005, which has been prepared by the CBI for registration of Page 22 23 cases under the Delhi Special Police Establishment Act. Therefore, non compliance of the mandatory

information reveals prima facie cognizable offence against the respondent herein and found that the matter is fit for investigation to be taken by the appellant herein, in not following the provisions of Section 154 does not vitiate the registration of FIR and further proceedings in the matter of registration. Therefore the request made by the appellant to set aside the impugned order specifying the aforesaid procedure laid down under the Manual and also the decision of this Court referred to (supra) and not complying with the mandatory procedure under Section 154 does not JUDGMENT vitiate the registration of FIR against the respondent and further there is no need for this Court to await the larger Bench decision on the issue in the case in Lalita Kumari vs. State of U.P.(supra). 24. Accordingly, the appeal is allowed, the impugned order is hereby set aside. It is open for the CBI to proceed further in the matter to conduct Page 23 24 investigation and proceed in accordance with law against the respondent. ……………………………………………………… J. (Dr. B.S. CHAUHAN) ………………………………………………………J. (V. GOPALA GOWDA) New Delhi, January 9, 2013 JUDGMENT Page 24