SARAL BEOPAR ASSOCIATION LIMITED Vs. THE STATE OF HARYANA AND ANR.
LAWS(P&H)-1969-12-28
HIGH COURT OF PUNJAB AND HARYANA
Decided on December 24,1969

Saral Beopar Association Limited Appellant
VERSUS
The State of Haryana and Anr. Respondents

JUDGEMENT

Gurdev Singh, J. - (1.) IN this application, we are called upon to consider the scope and the extent of the powers of this Court under Section 561 -A of the Code of Criminal Procedure to interfere with a criminal case which is yet at the investigation stage, no complaint or report under Section 173 of the Code of Criminal Procedure having been submitted to a Court competent to take cognizance of the offence.
(2.) THE Petitioner Saral Beopar Association Limited, Jagadhri, is a limited company incorporated under the Indian Companies Act. Under its Memorandum of Association, apart from other activities, it is entitled to trade and deal in non -ferrous metals, to act as pucca Afiia and also to enter into separate agreements with its shareholders and members regarding the trade above -mentioned. On 8th October, 1964, Ram Kumar of Jagadhri made a written complaint to the Superintendent of Police charging the Petitioner -company with contravention of various provisions of the Forward Contracts (Regulation) Act, 1952, on which a case was registered against the company at the police station Jagadhri under Sections 17, 20 and 21 of the Act on 18th December, 1964. In the course of investigation part of the Petitioner's record was seized. The investigation having remained pending for nearly three years, on 1st August, 1967, the Petitioner -company has come up with the present petition involving the jurisdiction of this Court under Section 561 -A of the Code of Criminal Procedure with the following prayer: The petition be accepted by quashing the first information report and also by ordering the return of the books or any other appropriate order in the interests of justice may be passed, which may save the Petitioner, other Members and Directors of the company. In support of this contention, it is asserted that the allegations made in the first information report are entirely false, frivolous and malicious, that even if all those allegations are taken to be correct, no offence is disclosed and that the police had been prolonging the investigation unnecessarily in order to harass the Members, Directors and employees of the company. When the matter originally came up before my learned brother Sandhawalia, J., a preliminary objection was taken on behalf of the State that the case having been registered for an offence which was cognizable, the police had statutory right to investigate the same, and the investigation could not be interfered with or stopped either under Section 439 or Section 561 -A of the Code of Criminal Procedure. Being of the opinion that the point raised was of considerable importance and likely to arise frequently, my learned brother directed that the matter be considered by a larger Bench.
(3.) THE question needing our consideration, formulated by Sandhawalia, J., in his order of reference, runs thus: Is the High Court under Section 561 -A, Code of Criminal Procedure, empowered in an appropriate case to interfere and quash criminal proceedings during the pendency of an investigation by the Police and before a report under Section 173, Code of Criminal Procedure, has been filed in a Court of competent jurisdiction?;


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