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2024 Supreme(SC) 815

SUPREME COURT OF INDIA
SANJAY KUMAR, ARAVIND KUMAR, JJ.
Gagan Banga and Another – Petitioners
Versus
The State of West Bengal and Others – Respondents
Misc. Application Nos. 1861, 1862 of 2023, Interlocutory Application Nos. 138072, 150965 of 2023, Writ Petition (Crl.) No. 166 of 2023
Decided On : 23-09-2024

Advocates appeared:
For the Petitioner(s): Mr. Siddharth Dave, Sr. Adv. Mr. Udai Khanna, Adv. Mr. Talha Abdul Rahman, AOR Mr. Rudra Pratap, Adv. Mr. Tushar Randhawa, Adv. Mr. Sudhanshu Tewari, Adv. Mr. M Shaz Khan, Adv. Mr. Adnan Yousuf, Adv. Mr. Rafid Akhter, Adv. Mr. Mukul Rohatgi, Sr. Adv. Mr. Ankur Saigal, Adv. Mr. Abhinav Agrawal, AOR
For the Respondent(s): Ms. Anju Thomas, Adv. Ms. Astha Sharma, AOR Ms. Mantika Haryani, Adv. Mr. Shreekant Neelappa Terdal, AOR Mr. Zeeshan Diwan , AOR Mr. B. K. Satija, AOR Mr. K M Nataraj, A.S.G. Mr. Shailesh Madiyal, Sr. Adv. Mr. Mukesh Kumar Maroria, AOR Mr. Arkaj Kumar, Adv. Mr. Gautam Bhardwaj, Adv. Mr. Ishaan Sharma, Adv. Mr. Digvijay Dam, Adv. Mr. Prashant Singh Ii, Adv.

IMPORTANT POINTS
(1) Miscellaneous application – Post-disposal applications for modification and clarification of disposal order shall lie only in rare cases.
(2) Power of recall is different from power of altering/ reviewing a judgment – Our legal system acknowledges fallibility of Judges.
(3) Criminal proceedings ought not to be scuttled and Courts, in usual course, should not thwart investigation into cognizable offences.

Headnote:

(A) Supreme Court Rules, 2013 – Rule 6 of Order LV – Constitution of India – Article 32 – Miscellaneous application – Maintainability – Ordinarily and in usual course, Supreme Court would be averse and opposed to entertaining miscellaneous applications in disposed of cases – Post-disposal applications for modification and clarification of disposal order shall lie only in rare cases – However, when individual facts of a particular case so warrant, there can be no bar to entertaining a clarification/modification petition in a disposed of case – This would necessarily depend on facts and circumstances of that individual case – If any abuse of process is noticed after disposal of case or if a modification is found essential to meet ends of justice, Supreme Court would be justified in entertaining application in a disposed of case and exercising such power. (Paras 10 and 12)

(B) Criminal Procedure Code, 1973 – Sections 362 and 482 [Bharatiya Nagarik Suraksha Sanhita, 2023 – Sections 403 and 528] – Review/recall of Judgment – No adverse order should be passed against a party without hearing it – This is fundamental principle of natural justice and it is a basic canon of jurisprudence – Power of recall is different from power of altering/ reviewing a judgment – If an order is pronounced without giving opportunity of hearing to a party affected by it, inherent powers of Court can be exercised to recall such order – Our legal system acknowledges fallibility of Judges – As Courts of record, it is necessary that Constitutional Courts recognize errors that may have crept into their judicial orders and rectify the same when called upon to do so. (Paras 13 and 14)

(C) Criminal Procedure Code, 1973 – Section 482 [Bharatiya Nagarik Suraksha Sanhita, 2023 – Section 528] – Constitution of India – Article 32 – Stay on FIRs – When a party is relegated to High Court to pursue its remedies, it would not be proper, in normal course, to bind High Court with directions in relation to proceedings to be impugned before such Court – Ordinarily, Supreme Court would leave all issues open for party so relegated to raise and pursue before High Court – Criminal proceedings ought not to be scuttled and Courts, in usual course, should not thwart investigation into cognizable offences – High Courts in which proceedings have been instituted against FIRs would be at liberty to entertain applications for interim relief in relation thereto and consider such applications and also main cases on their own merits and in accordance with law. (Paras 17 and 18)

Facts of the case:

Writ Petition (Crl.) seeks writ, order or direction in nature of mandamus or any other appropriate writ or order thereby laying down appropriate guidelines to be followed by all including police officials and Judicial Magistrate to desist from initiating or directing initiation of criminal proceedings against financial institutions, its assignees, management, officers, employees, lawful transferees and purchasers of secured assets at behest of disgruntled defaulting borrowers, so as to protect their fundamental rights guaranteed under Article 14, 19 and 21 of Constitution.

Findings of Court:

High Courts in which proceedings have been instituted against FIRs would be at liberty to entertain applications for interim relief in relation thereto and consider such applications and also main cases on their own merits and in accordance with law, uninfluenced by any observations made in order dated 04.07.2023.

Result : Miscellaneous applications and interlocutory applications are disposed of with observations.

JUDGMENT :

SANJAY KUMAR, J

1. Writ Petition (Crl.) No. 166 of 2023 was filed by Gagan Banga and Indiabulls Housing Finance Limited, New Delhi, under Article 32 of the Constitution of India, with the following prayers:

    “In the facts and circumstances of the instant case, it is, therefore, most respectfully prayed that this Hon’ble Court may graciously be pleased to:

    (i) Issue a writ, order or direction in the nature of mandamus or any other appropriate writ or order thereby laying down appropriate guidelines to be followed by all including the police officials and Judicial Magistrate to desist from initiating or directing initiation of criminal proceedings against the financial institutions, its assignees, management, officers, employees, lawful transferees and purchasers of secured assets at the behest of disgruntled defaulting borrowers, so as to protect their fundamental rights inter-alia guaranteed under Article 14, 19 and 21 of the Constitution of India, 1950.

    (ii) Issue a writ, order or direction in the nature of certiorari or any other appropriate writ or order thereby quashing the FIR’s mentioned at Table 1 above registered by or at the instance of disgruntled defaulting borrowers in abuses of process of law by giving criminal colour to civil dispute, with consequential reliefs.

    (iii) Impose exemplary costs on the Respondents for abusing the process of law.

    (iv) Pass any others as this Hon’ble Court may deem fit and proper.”

2. Table 1, referred to in prayer ii above, was set out in paragraph 5 of the writ petition and mentioned 3 FIRs, viz. FIR No. 646 of 2022 dated 26.10.2022 registered at PS Titagarh, West Bengal; FIR No. 427 of 2023 dated 09.04.2023 registered at PS Indirapuram, Ghaziabad, Uttar Pradesh; and FIR No. 25 of 2021 dated 27.01.2021 registered at PS Economic Offences Wing, Delhi.

3. By interim order dated 28.04.2023, this Court granted stay of all proceedings pursuant to the impugned FIRs in three different States.

4. Thereafter, on 03.07.2023, the writ petitioners filed three I.A. in the writ petition. I.A. No. 122408 of 2023 was filed by them seeking to implead Yamuna Industrial Development Authority (YIDA), Greater Noida, Uttar Pradesh, and the Enforcement Directorate, New Delhi, as respondent Nos. 7 and 8 in the writ petition. They stated that FIR No. 197 of 2023 dated 15.04.2023 was registered at PS Bita-2, Greater Noida, Uttar Pradesh, at the behest of YIDA and then, the Enforcement Directorate, New Delhi, registered ECIR No. ECIR/HIU-1/06/2023 based on the said FIR and the earlier FIR No. 427 dated 09.04.2023. By way of I.A. No. 122410 of 2023, they sought stay of further proceedings pursuant to FIR No. 197 of 2023 and ECIR No. ECIR/HIU-I/06/2023. I.A. No. 122413 of 2023 was filed by them seeking to bring on record additional facts and include an additional prayer to quash FIR No. 197 of 2023 dated 15.04.2023 and ECIR No. ECIR/HIU-1/06/2023 in so far as they were concerned.

5. The writ petition was taken up for hearing on 04.07.2023 and disposed of with directions. The final order records that the IAs for im00.pleadment and to bring on record additional facts were both allowed. Taking note of the facts of the case, this Court deemed it appropriate to permit the writ petitioners to approach the jurisdictional High Courts to challenge all four FIRs and the ECIR within two weeks, requesting the High Courts to consider and decide the petitions expeditiously and not later than six months from the date of their presentation. Till the final disposal of the respective petitions, the earlier interim order dated 28.04.2023 passed in the writ petition in respect of the first three FIRs was directed to continue.

6. As regards FIR No. 197 of 2023 and ECIR No. ECIR/HIU-I/06/2023, this Court directed that no coercive steps should be taken against the petitioner financial institution and its officers, representatives and managers till the final disposal of such petitions by the High Court and left it open to the petitioners t

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