Supreme Court - Daily Orders
Anil Hiralal Shah vs The State Of Rajasthan on 4 January, 2023
Bench: Aniruddha Bose, Sudhanshu Dhulia
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ITEM NO.48 COURT NO.11 SECTION II
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Petition(s) for Special Leave to Appeal (Crl.) No(s). 7325/2022
(Arising out of impugned final judgment and order dated 15-12-2021
in SBCRLM(P) No. 5867/2020 passed by the High Court Of Judicature
For Rajasthan At Jaipur)
ANIL HIRALAL SHAH Petitioner(s)
VERSUS
STATE OF RAJASTHAN & ORS. Respondent(s)
(FOR ADMISSION and I.R. and IA No.105980/2022-EXEMPTION FROM FILING
C/C OF THE IMPUGNED JUDGMENT and IA No.105981/2022-EXEMPTION FROM
FILING O.T. )
Date : 04-01-2023 This petition was called on for hearing today.
CORAM :
HON'BLE MR. JUSTICE ANIRUDDHA BOSE
HON'BLE MR. JUSTICE SUDHANSHU DHULIA
For Petitioner(s) Mr. Shreeyash Uday Lalit, Adv.
Mrs. Raveena Lalit, Adv.
Mr. Abhinav Aggarwal, Adv.
Mr. Aamir Chaudhary, Adv.
Mr. Krishna Abhaygopal, Adv.
Ms. Runjhun Garg, Adv.
Mr. Ishaan George, AOR
For Respondent(s) Mr. Sidharth Luthra, Sr.adv.
Mr. Harsh Sethi, Adv.
Mr. Ankur Garg, Adv.
Mr. Sanket Khandelwal, Adv.
Mr. Devansh Chauhan, Adv.
Mr. Rudraditya Khare, Adv.
Mr. Anant Nigam, Adv.
Ms. Prachi Pratap, Adv.
Dr. Prashant Pratap, Adv.
Ms. Pallavi Pratap, AOR
Signature Not Verified
Mr. Rahul Kumar, Adv.
Ms. Kavita Bhardwaj, Adv.
Digitally signed by
NIRMALA NEGI
Date: 2023.01.06
16:46:18 IST
Reason: Mr. Vishesh Kumar, Adv.
Mr. Shubham Sethi, Adv.
Mr. Milind Kumar, AOR
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UPON hearing the counsel the Court made the following
O R D E R
Heard learned senior counsel/counsel appearing for the parties.
Grievance of the petitioner in this matter is over transferring the investigation triggered off by a complaint of Respondent No.3 to the Serious Fraud Investigation Office (SFIO). Allegation of the said respondent, inter-alia, is that the accused persons had generated funds through forgery and criminal offences and these funds were invested in shares of several companies. Initially, the Investigating Officer had sent written request to Central Depository Services (India) Limited and National Securities Depository Limited to prevent transfer of certain shares. On 17th December, 2020, on the complaint of the respondent no.3, the High Court, in substance directed freezing of sale of the subject- shares. This order was passed when it was alleged before the Court that the concerned police officer was in the process of withdrawing the request-letter of sale-restraint. Several applications were thereafter filed before the High Court by persons who claim to have purchased such shares. It was that stage the respondent no.3 had made an application for transferring the investigation to the SFIO.
On behalf of the petitioner, it is urged that the said agency cannot investigate into acts of individuals as in terms of Section 211 of the Companies Act, 2013, the said Agency can investigate frauds relating to a company only. In the instant case, it has been argued before us, that the allegations relate to purchasing shares on the basis of funds generated by the accused and investing them 3 in several companies. Substance of the arguments on behalf of the petitioner is that an investigation of this nature does not fall within the statutory mandate of the SFIO.
In the given case, we find that though the allegations are against individuals, before the High Court, plea of the respondent no.3 was that the accused persons (one of them being petitioner before us) ran several companies and investigation of those companies and other companies of which the accused persons were directors could unfold the truth. It is also the allegation against the accused persons that they are involved in parking of black money and indulging in other illegal activities relating to the share market. Thus, though the allegations are against individuals, they also run several companies and investigation into those companies might be necessary to unravel the illegalities, if any. The regular police force may not be best equipped to deal with offences of this nature.
Our attention has been drawn to the provisions of sub- Section(2) of Section 210 of the 2013 Act, which stipulates that where an order is passed by a Court or Tribunal in any proceeding before it that the affairs of a company ought to be investigated, the Central Government shall order an investigation into the affairs of that company. This provision applies to proceedings arising out of complaints of illegalities of corporate entities, and the requirement that it would be for the Central Government to order investigation would not apply to cases of this nature. It is our opinion that it would be within the jurisdiction of the Constitutional Court, even if that Court exercises power or 4 jurisdiction emanating from the Code of Criminal Procedure 1973, to direct investigation in respect of complaint of commission of any offence brought before it, by any specialized investigating agency. Provided of course, such specialized agency must otherwise have the expertise to deal with such offences. The SFIO would come within the ambit of power of that Constitutional Court, as an investigating agency, upon whom such direction could be issued. The statutory provisions containing the manner of engaging such agency would not bind the Constitutional Court in issuing directions for investigation to reach at the root of the offences alleged before it.
In any event, the petitioner being an accused, cannot have choice over any agency through which complaint against him can be investigated.
In the judgment assailed in this petition, the High Court has given adequate reason for directing investigation by the SFIO and we do not think these reasons are inadequate.
We, accordingly, decline to entertain the present petition and the same is dismissed.
We, however, make it clear that this order shall not in any manner be treated to prejudice the petitioner’s case pending in the High Court, registered as S.B.Crl.Misc.Petition No.471/2021.
Pending application(s), if any, shall stand disposed of.
(NIRMALA NEGI) (VIDYA NEGI) COURT MASTER (SH) ASSISTANT REGISTRAR