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SUPREME COURT OF INDIA
Indira Banerjee, J.K. Maheshwari, JJ.
Sri Narendra Kumar A. Baldota J. K. Maheshwari – Appellant
Versus
The State of Karnataka – Respondent
Criminal Appeal No. of 2022 (Arising Out of SLP (Criminal) No. 9528 of 2021)
Decided On : 14-03-2022
Corruption - Prevention of Corruption Act, 1988 - Sections 13(1)(c), 13(1)(d), 13(2) - Indian Penal Code - Sections 120B, 420
Fact of the Case:
The appellant, Chairman and Managing Director of M/s MSPL Limited, sought to quash criminal proceedings against him for alleged offences under the Prevention of Corruption Act, 1988 and the Indian Penal Code. The case arose from a complaint alleging collusion and conspiracy in the evasion of road tax for an imported vehicle.
Finding of the Court:
The High Court dismissed the appellant's petition to quash the proceedings, emphasizing the gravity of the allegations and the demand notice for the differential tax. However, the Supreme Court found the proceedings to be misconceived, harassive, and an abuse of process of law, and allowed the appeal, staying further proceedings.
Issues: The main issue was whether the appellant's involvement in the alleged evasion of road tax constituted criminal offences under the relevant laws.
Ratio Decidendi: The court emphasized that criminal law cannot be set into motion as a matter of course and that summoning an accused in a criminal case is a serious matter. It held that the charges against the appellant were vague and devoid of material particulars, and that there was no specific role attributed to the appellant in relation to the alleged offences.
Final Decision: The Supreme Court allowed the appeal, finding the proceedings against the appellant to be misconceived, harassive, and an abuse of process of law, and stayed further proceedings.
JUDGMENT
Indira Banerjee, J. - Leave granted.
2. This Appeal is against an order dated 22nd October 2021 passed by the Dharwad Bench of the High Court of Karnataka dismissing the Criminal Petition being CRL.P. No.100167 of 2017 filed by the Appellant under Section 482 of the Code of Criminal Procedure (Cr.P.C.), seeking to quash the proceedings against the Appellant in Crime No.69/2012 on the file of the III Additional District and Sessions Judge, Ballari later numbered as Special Case No.04/2016 for offences punishable under Sections 13(1)(c) and 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988 (hereinafter referred to asthe P.C. Act) and Sections 120B and 420 of the Indian Penal Code (IPC).
3. The Appellant is the Chairman and Managing Director of M/s MSPL Limited. In 2010, MSPL Limited imported an Aston Martin Rapide car for which the Company paid the applicable customs duty. The Company also paid road tax to the Regional Transport Office (RTO), Hosapete.
4. One Jagadish B.N., Advocate filed a private complaint in the Court of XXIII Additional City Civil Sessions Judge, Bangalore City and Special Judge, Prevention of Corruption Act, Bangalore Urban District, Bangalore City alleging that there was collusion and conspiracy between RTOs in Karnataka as a result of which appropriate road tax was not being collected. It was alleged that cars were being imported in Karnataka for which RTO was not charging road tax as per the actual cost.
5. By an order dated 7th August 2012, the Court of XXIII Additional City Civil & Special Judge, Prevention of Corruption Act Bengaluru passed an order referring the complaint to the Superintendent of Police, Lokayuktha, Bengaluru Urban, under Section 156(3) of the Cr.P.C. with a direction to constitute a team of four Deputy Superintendents of Police to investigate the matter and report. On 14th August 2012, FIR in respect of the complaint was registered at the Lokayuktha Police Station, Bengaluru, Urban and a criminal case being Crime No.69/2012 was started.
6. Some relevant observations and/or findings in the order dated 7th August 2012 of the XXIII Additional City Civil Sessions Judge, Bangalore City and Special Judge, Prevention of Corruption Act, Bangalore Urban District, Bangalore City are as follows:
This complaint is filed under section 200 of Cr.P.C. on 06.08.2012 by the complainant Mr. Jagadeesh B.N, advocate and the complainant claims that a huge scam has taken place in connection with imported cars, more particularly Bentley and Ferari cars.
5 .The complaint claims that huge scam has taken place regarding registration of Foreign cars that are imported to India more particularly Bentley and Ferari. The complainant claims that the vehicle dealers, middle man, smugglers across the country and owners of the imported vehicle at Mangalore have misquoted and collected the price of Bentley and Ferari car have come away with the registration, and in the process have also managed suppress the brand names of the cars. The complainant claims that he is unable to procure that facts which have been hidden and buried at high public functionaries and it is only an authorised investigating agency that can unearth the fraud taken place regarding the fraud in the registration.
6 . The complainant claims that after a tax investing exposed the alleged smuggling operation, nervous members of the super-rich have scrambled to avoid arrest by abandoning cars, including Bentleys and Astoria Martins on the streets of New Delhi and it is reported and a copy photograph is made available. The complainant claims that the said document is down loaded from the internet.
7 .The Complainant claims that more than 500 cars entered India and majority have been illegal or illegal means and to general car registered it requires the payment of tax of 18% of the amount. The complainant claims that to get a car registered in the passport authorities, and approved procedure is laid down by the Motor Vehicles Act,
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