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9. Learned counsel Mr. I.H. Syed, appearing for the appellant submits that the High Court had dismissed the appellant's Writ Petition on an erroneous interpretation of the provisions of Section 156(3) and 181(4) Cr.P.C. Learned counsel submitted that the High Court had failed to notice that Sub-section (2) of Section 156 Cr.P.C. conferred exclusive jurisdiction on the Investigation Officer to investigate into a case and no proceeding of a police officer in any case in which he is entitled to investigate shall at any stage be called in question. Alleging that the power of the Magistrate under Sub-section (3) was circumscribed by the powers vested in the Investigating Agency under Sub-Section (2) of Section 156 Cr.P.C, and that it was only the Investigating Agency which could decide the question relating to the territorial jurisdiction in respect of the crime committed, learned counsel submitted that the High Court had erred in upholding the views expressed by the learned Chief Metropolitan Magistrate that the Investigating Agency was only required to state the outcome of the investigation conducted pursuant to an order under Section 156(3) Cr.P.C. and that it had no authority or right to state as to which Court had jurisdiction to inquire into the alleged offence in question. Learned counsel submitted that the High Court had erred in law in observing that it was a settled proposition of law that when a Magistrate directs an investigation to be conducted in exercise of his powers under Section 156(3) Cr.P.C. the main duty of the Investigating Agency is to submit a report as to the commission of an offence and, thereafter, it was for the Court concerned to accept such Report and to decide the question of jurisdiction and that the learned Magistrate had rightly rejected the Final Report on the ground that the Investigating Agency had no authority under the law to express its opinion on the merits of a case.

16. On the legal question raised on behalf of the appellant, Mr. Rao submitted that Section 156 Cr.P.C. only spelt out the powers of a police officer to investigate a cognizable case and the power of a Magistrate to order such an investigation to be made. In addition, it was also stipulated that no investigation by a police officer at any stage of such investigation could be questioned on the ground that such officer was not empowered to conduct such investigation. Mr. Rao submitted that the decisions cited by Mr. Syed did not really make any difference to the appellant's case as the power of the Investigating Officer to transfer an investigation, which he did not have the jurisdiction to investigate, to a police officer having such jurisdiction, was never at issue in the instant case. What was at issue was the Investigating Officer's decision not to conduct an investigation despite an order passed by the Chief Judicial Magistrate, Ahmedabad, under Section 156(3) Cr.P.C. on the ground that he did not have territorial jurisdiction to undertake such investigation. Mr. Rao submitted that an investigation ordered under the provisions of Sub- Section (4) of Section 181 Cr.P.C. would have to be read in that context.

22. In the instant case, the stage contemplated under Section 181(4) Cr.P.C. has not yet been reached. Prior to taking cognizance on the complaint filed by the Bank, the learned Chief Judicial Metropolitan Magistrate, Ahmedabad, had directed an inquiry under Section 156(3) Cr.P.C. and as it appears, a final report was submitted by the Investigating Agency entrusted with the investigation stating that since the alleged transactions had taken place within the territorial limits of the city of Mumbai, no cause of action had arisen in the State of Gujarat and, therefore, the investigation should be transferred to the police agency in Mumbai. There seems to be little doubt that the Economic Offences Wing, State CID (Crime), which had been entrusted with the investigation, had upon initial inquiries recommended that the investigation be transferred to the police agency of Mumbai. In our view, both the trial Court as well as the Bombay High Court had correctly interpreted the provisions of Section 156 Cr.P.C. to hold that it was not within the jurisdiction of the Investigating Agency to refrain itself from holding a proper and complete investigation merely upon arriving at a conclusion that the offences had been committed beyond its territorial jurisdiction. A glance at the material before the Magistrate would indicate that the major part of the loan transaction had, in fact, taken place in the State of Gujarat and that having regard to the provisions of Sub-section (2) of Section 156 Cr.P.C., the proceedings of the investigation could not be questioned on the ground of jurisdiction of the officer to conduct such investigation. It was open to the learned Magistrate to direct an investigation under Section 156(3) Cr.P.C. without taking cognizance on the complaint and where an investigation is undertaken at the instance of the Magistrate a Police Officer empowered under Sub-section (1) of Section 156 is bound, except in specific and specially exceptional cases, to conduct such an investigation even if he was of the view that he did not have jurisdiction to investigate the matter.

25. The various decisions cited by Mr. Syed, and in particular the decision in Satvinder Kaur's case (supra) provide an insight into the views held by the Supreme Court on the accepted position that the Investigating Officer was entitled to transfer an investigation to a Police Station having jurisdiction to conduct the same. The said question is not in issue before us and as indicated hereinbefore, we are only required to consider whether the Investigating Officer in respect of an investigation undertaken under Section 156(3) Cr.P.C. can file a report stating that he had no jurisdiction to investigate into the complaint as the entire cause of action had arisen outside his jurisdiction despite there being material available to the contrary. The answer, in our view, is in the negative and we are of the firm view that the powers vested in the Investigating Authorities, under Sections 156(1) Cr.P.C., did not restrict the jurisdiction of the Investigating Agency to investigate into a complaint even if it did not have territorial jurisdiction to do so. Unlike as in other cases, it was for the Court to decide whether it had jurisdiction to entertain the complaint as and when the entire facts were placed before it.