Judgment :-

Altamas Kabir, J.

1. Leave granted.

2. The Madhavpura Mercantile Cooperative Bank Ltd., which is governed by the provisions of the Multi State Cooperative Societies Act, 2002, has its Registered as well as Head Office at Madhavpura Market, Shastribaug, Ahmedabad, and carries on banking operations in the State of Gujarat, Maharashtra among other States in India. According to the Bank, all its activities relating to disbursement of loans are conducted from the Head Office at Ahmedabad.

3. In 1992, the appellants company took loan from the aforesaid Bank which for the reasons prevailing closed down its business operations in 2001. Thereafter, a Scheme of Reconstruction approved by the Reserve Bank of India was formulated and a new Board of Management (Administration) came to be appointed to implement the same. Several irregularities were discovered regarding the grant of loans to borrowers with the connivance of the then Chief Executive Officer, Managing Director and Chairman of the Bank. Several complaints came to be registered against the said officers and several borrowers. Five such complaints were filed against the appellant on 9th July, 2003, before the Chief Metropolitan Magistrate, Ahmedabad, who directed the Economic Offences Wing, State C.I.D. (Crime), Ahmedabad, under Section 156(3) Cr.P.C. to carry out an investigation. The Investigating Agency submitted a report stating that the allegations complained of had been committed within the territorial limits of the city of Mumbai, Maharashtra, and that the investigation should, therefore, be transferred to the Investigation Agency in Mumbai, Maharashtra.

4. The said report was rejected by the Chief Metropolitan Magistrate, Ahmedabad, on the ground that it was not for the Investigating Agency to decide not to investigate a complaint forwarded to it under Section 156(3) Cr.P.C. on the ground that the offence complained of was allegedly committed outside the territorial jurisdiction of the Investigating Agency. The learned Magistrate by his order dated 31.5.2006, directed the Investigating Agency to carry out a further investigation and report whether the alleged offence had been committed or not.

5. The said order of the learned Chief Judicial Magistrate, Ahmedabad, was challenged by the appellant herein before the City Civil and Sessions Court at Ahmedabad in revision which was dismissed on 22.9.2006 by the City Sessions Judge Court No.11, Ahmedabad. A writ petition was filed in the High Court by the appellant on 21.11.2006 being Writ Petition No.2366 of 2006, challenging the decision of the Sessions Court.

6. Before the High Court it was reiterated that the loan had been availed of by the appellants company from the Mandvi Branch of the Bank in Mumbai which had an independent identity as a registered co-operative Society under the Maharashtra Co-operative Societies Act. It was also reiterated that the loan amount had been disbursed from the said Branch in Mumbai. It was contended that since the cause of action for the alleged offence had arisen outside the territorial jurisdiction of the Chief Judicial Magistrate, Ahmedabad, he could not direct the Investigating Agency under his jurisdiction to conduct an investigation into the complaint made against the appellant in respect of such cause of action.

7. Accepting the views expressed by the Chief Metropolitan Magistrate that the Investigating Agency was only required to state the outcome of the investigation pursuant to an order under Section 156(3) Cr.P.C. and that it had no authority to state which Court had jurisdiction to inquire into the alleged offence, the High Court by its impugned judgment dated 15.3.2007 dismissed the writ petition filed by the appellant, inter alia, on the following grounds :-

(i) That the Investigating Agency had travelled beyond its jurisdiction in expressing its views regarding the territorial jurisdiction in regard to a criminal offence which was for the Courts to decide.

(ii) That