IMPORTANT POINT
When investigation is yet to be completed, the proceeding should not be quashed.

JUDGMENT

Uday Umesh Lalit, J.

Original accused Nos.2 and 3 approached the High Court of Judicature at Madras by filing petitions under Section 482 Cr.P.C. namely Crl. O.P. No.13106/2013 and 14971/2013 respectively seeking quashing of Crime No.304 of 2012 registered pursuant to FIR 304 of 2012 dated 12.03.2012 with Adambakkam Police Station, Chennai. Said petitions were allowed by the High Court vide its common judgment and order dated 15.10.2014 which is presently under challenge at the instance of State of Tamil Nadu in these appeals by special leave.

2. The aforesaid FIR was registered pursuant to reporting by M. Nataraj, Inspector of Police, Crime, Adambakkam Police Station, Chennai. The FIR inter alia stated that the informant had received information that several crores of unaccounted money was stashed in the house of accused-1, Nagarajan pursuant to which a raid was conducted and cash amounting to Rs. 7,20,05,000/- stored in three bags was found. The FIR further noted that said accused No.1 Nagarajan had admitted that he and his associates, namely, Accused No.2 Martin and Accused No.3 Murthy had illegally printed lottery tickets of the States of Sikkim, Kerala and Maharashtra and sold the same without obtaining any permission and in the process had amassed enormous profit and the cash in question represented the same. Rs. 50 lakhs in cash were also seized from the house of Accused No. 3 Murthy. A-1 Nagaraj was immediately arrested and Crime No.304/2012 was registered under Sections 294(A), 420 and 120(b) IPC and the case was forwarded for investigation.

3. During the course of investigation 3625 numbers of lottery tickets of various States were recovered. In his application for anticipatory bail, accused No.2 Martin relied upon a document i.e. Agreement of Sale dated 02.03.2012. According to this unregistered agreement, the wife of accused No.2 - Martin named Mrs. Leema Rose had agreed to purchase House No.4, Old No. 56, 3rd Main Road, Anna Nagar, Chennai-40 from said accused No.3-Murthy and had paid Rs. 7.3 crores by way of advance in cash. It was submitted that the seized cash in question represented such amount received in cash.

4. While the matter was still under investigation, Crl.O.P. Nos.13106/2013 and 14971/2013 were filed on 21.05.2013 and 11.06.2013 respectively, praying inter alia quashing of aforesaid Crime No. 304 of 2012. A common counter affidavit dt. 25.06.2013 refuting all material allegations was filed by Assistant Commissioner of Police on behalf of State of Tamil Nadu. It was submitted, inter alia that the unregistered agreement dated 02.03.2012 was on a stamp paper which was issued by the State Government to the stamp vendor on 09.03.2012 and the same was sold to one Vimla on 13.03.3012. It was further submitted that the lottery tickets recovered during investigation were sent to the respective State Governments to check whether they were genuine and the report was still awaited. The counter affidavit further submitted that the investigation was still incomplete.

5. The High Court by its judgment and order dated 15.10.2014 allowed said Crl. O.P. Nos. 13106/2013 and 14971/2013 and quashed Crime No.304 of 2012 in its entirety. The High Court was of the view that the present case came within categories 2,3,5 and 7 as laid down by this Court in State of Haryana & Others v. Ch. Bhajan Lal & Others, 1992 Suppl.(1) SCC 335. It further observed:

"In this case, there in no element of impersonation or falsely claiming to be authorized to make a false document. ............

As far as the present case is concerned, the custody of unaccounted money is not specified as to be an offence and the act of creating ante dated document by allegedly using forged non judicial stamp papers is also not specified as offence under the Code."

The High Court finally summed up:

"Thus, for the reasons stated above, this court is of the view that neither the case of the prosecution discloses any of the ingredients of the offences charged aga