IMPORTANT POINT
Inherent Jurisdiction – While bar under Section 397(3) of Cr.P.C. does not curtail remedy under Section 482 of Cr.P.C., inherent powers must be exercised sparingly.

JUDGMENT :

PAMIDIGHANTAM SRI NARASIMHA, J.

1. This appeal arises out of the final judgment of the High Court of Madras¹[Crl. O.P. No. 5835 of 2017 dated 21.04.2017, wherein the High Court has quashed the C.C. No. 30 of 2013.], by which criminal proceedings against the respondent under Section 13(2) read with Section 13(1)(e) of the Prevention of Corruption Act, 1988²[Hereinafter “PC Act”.] for possessing assets disproportionate to known sources of income were quashed while exercising jurisdiction under Section 482 of the Code of Criminal Procedure, 1973³[Hereinafter “Cr.P.C”.].

2. Facts: The relevant facts are that the respondent joined government service as a surveyor in 1980 and was working as Assistant Director with Nagercoil Local Planning Authority at the relevant time. Upon receipt of a complaint that the respondent is hoarding assets disproportionate to known sources of income earned during check period 01.01.2001 to 31.08.2008, an investigation was conducted, which revealed that he had, in fact, acquired assets worth Rs. 26,88,057/- disproportionate to his income. An FIR bearing number 11/AC/2009/CC-III was registered under Sections 13(2) read with 13(1)(e) of the PC Act on 27.07.2009, and the State government granted sanction to prosecute the respondent on 08.07.2013. After investigation, the chargesheet was filed on 23.09.2013.

3. The respondent filed a discharge application under Section 239 of the Cr.P.C. before the Special Court, Chennai, which came to be dismissed vide order dated 27.01.2016. While deciding the discharge application, the Special Court considered the matter in detail and noted that the prosecution has, in fact, accepted the explanation regarding: (i) the valuation of the house owned by the respondent at Poona Nagar and revised the amount from Rs.17,19,541/- to Rs.10,48,861/- after leaving out the value of the first floor constructed after the check period; and (ii) value of the asset with respect to the loan of Rs.3,00,000/- obtained by the respondent’s wife for the purchase of a car from Kotak Mahindra. Ultimately, the total value of the disproportionate assets was modified from Rs.43,78,383/- to Rs. 37,07,703/- and thereafter to Rs. 26,88,057. On the other hand, the explanation with respect to the non-deduction of the claim of: i) income earned by the wife through real estate business, ii) gift said to have been received by the respondent’s daughter from her grandfather, and iii) income said to have been earned by the respondent’s son were not interfered with on the basis of a prima facie finding. The relevant portion of the order of the Special Court is as follows:

“11…The case is in the stage of framing of charge and the validity of the said documents viz gift deed, source of income of Chinnasami to make a gift of Rs.7,80,000/- and the regarding income of the petitioner’s wife which was not relied upon by the prosecution cannot be decided at this stage. It is a settled law that at the stage of framing of charges the court has got a limited jurisdiction only to see whether a prima facie case has been made out by the prosecution against the accused to frame charge. The appreciation of evidence for the purpose of arriving at the conclusion whether the prosecution has proved the case against the accused beyond reasonable doubt would arise only after all the evidence are brought on record after trial…though the petitioner counsel contends that income of other family members were not considered by prosecution, but the prosecution had contended that there is no document to substantiate the income of petitioner’s wife and the alleged gift of Rs.7,80,000/- to the petitioner’s daughter by her Grandfather is an afterthought as the gift deed is not registered and no source of income for the said Chinnasami. Hence the validity of the same cannot be decided at this stage so known source of income at this stage has to be considered only the sources of income known to the prosecution and the document viz books of