SUPREME COURT OF INDIA
B.R. GAVAI, CJI, AUGUSTINE GEORGE MASIH, J.
Vikram Bakshi and Others – Appellants
Versus
R.P. Khosla and Another – Respondents
Criminal Appeal No. 3646 of 2025 [SLP (Criminal) No. 3425 of 2022]
Decided On : 20-08-2025
(A) Criminal Procedure Code, 1973 – Sections 362 [Section 403 of Bhartiya Nagarik Suraksha Sanhita, 2023] – Review/recall of order passed in a criminal proceeding – Except for clerical and arithmetical error, no court shall alter or review its judgment – Cr.P.C. does not authorize High Court to review its judgment or order passed either in exercise of its appellate, revisional or original jurisdiction – Section 362 explicitly prohibits court after it has signed its judgment or final order disposing of case from altering or reviewing said Judgment or Order except to correct a clerical or arithmetical error – This prohibition is complete and no criminal court can review its own judgment or order after it is signed – In exceptional cases, “procedural review” is inherent or implied in a court to set aside a palpably erroneous order passed under misapprehension by it – “Substantive review” is when error sought to be corrected is one of law and is apparent on face of record – It is in latter sense, no review lies on merits unless specifically provided under a statute. (Paras 27, 28 and 31)
(B) Criminal Procedure Code, 1973 – Sections 362 and 482 [Sections 403 and 528 of Bharatiya Nagarik Suraksha Sanhita, 2023] – Review/recall of order passed in a criminal proceeding – Criminal courts, as envisaged under Cr.P.C. are barred from altering or review their own judgments except for exceptions which are explicitly provided by statute, like, correction of a clerical or an arithmetical error – As courts become functus officio the very moment a judgment or an order is signed, bar of Section 362 Cr.P.C. becomes applicable, this, despite powers provided under Section 482 Cr.P.C. which, this veil cannot allow courts to step beyond or circumvent an explicit bar – It is only in situations wherein application for recall of an order or judgment seeking “procedural review” that bar would not apply and not a substantive review” where bar as contained in Section “362 Cr.P.C. is attracted – Review is permissible where court passing such a judgement or order lacked inherent jurisdiction to do so and and/or mistake on part of court caused prejudice to a party – All these exceptions are only exercisable for seeking recall or review of an order or judgment, if a ground that is raised was not available or existent at the time of original proceedings before Court – Mere fact that said ground, although available, was not raised or pressed during concerned proceedings, does not provide for an exemption to parties to assert it as a ground – Said power cannot be invoked as a means to circumvent finality of judicial process or mistakes and/or errors in decision which are attributable to a conscious omission by parties. (Paras 34 and 34A)
(C) Criminal Procedure Code, 1973 – Sections 340 and 362 [Sections 379 and 403 of Bharatiya Nagarik Suraksha Sanhita, 2023] – Review/recall of order passed in a criminal proceeding – Nature of proceeding is determined by its substance and consequences it may result into – Section 340 of Cr.P.C. empowers court that such determination may be done by way of holding preliminary inquiry to ascertain sufficient material to justify initiation of prosecution against accused – Nature of such inquiry is not administrative or mere procedural – Proceeding initiated under Section 340 of Cr.P.C. is in nature of criminal proceeding and governed by provisions of Cr.P.C. as a consequence, thereof, all procedural safeguards, consequences, and effects thereto associated with a criminal proceeding under Cr.P.C. are also attracted to it – Considering that proceedings initiated under section 340 of Cr.P.C. are of criminal nature and governed by provisions of Cr.P.C. which is a self-contained Code, there is no scope for application of provisions of any other procedural law until specifically provided under such law – CPC 1908 does not expressly provide for a provision wherein a review can be filed in proceedings of criminal nature initiated under Cr.P.C. – Impugned Order, being antithetical to law as laid down by Apex Court relating to Section 362 of Cr.P.C., ought to be set aside. (Paras 37, 38, 39, 40, 44 and 45)
Facts of the case:
Primary issue which arises for consideration of this Court is “whether a review or recall of an order passed in a criminal proceeding initiated under Section 340 of Cr.P.C. is permissible or not?”
Findings of Court:
Such an act to undermine finality of judicial proceedings cannot be permitted especially in such situations of deliberate omissions or misrepresentation on the part of parties before court and thereafter attempting to defend themselves and obtaining verboten order dated 05.05.2021, substantially reviewing and recalling Judgment dated 13.08.2020, under garb of “procedural review” which is impermissible.
Result : Appeal allowed.
JUDGMENT :
AUGUSTINE GEORGE MASIH, J.
1. Leave granted.
2. The instant Criminal Appeal assails the Judgment and Order dated 05.05.2021 (hereinafter “Impugned Order”) passed by the High Court of Delhi (hereinafter, “High Court”), whereby it recalled its earlier Judgment dated 13.08.2020 which had disposed of Criminal Miscellaneous (Co.) No. 4 of 2019 filed under Section 340 CRIMINAL PROCEDURE CODE , 1973 (hereinafter “Cr.P.C.”) against the Appellants for prosecution of offences of perjury and directed that the said application be listed for hearing. In the Judgment dated 13.08.2020, the High Court declined to interfere in the matter in view of the directions of this Court in Judgment dated 08.05.2014 passed in SLP (Criminal) No. 6873 of 2010 whereby dispute between the parties in relation to their Company Petition No. 114 of 2007 (hereinafter “CP No. 114 of 2007”) and other related matters arising out of it was to be decided by Company Law Board (hereinafter “CLB”).
3. The Appellants before us are Mr. Vikram Bakshi, Mr. Vinod Surha and Mr. Wadia Prakash while Mr. R.P. Khosla is the Contesting Respondent No. 1 and Mr. Anand Mohan Mishra is Proforma Respondent No. 2.
4. Briefly, the facts relevant for adjudication of the case in hand is that two groups, namely, the Khosla Group (comprising of Mr. R.P. Khosla, Mr. Deepak Khosla - son of R.P. Khosla and Ms. Sonia Khosla - wife of Mr. Deepak Khosla) and the Bakshi Group (comprising of Mr. Vikram Bakshi, Mr. Vinod Surha and Mr. Wadia Prakash) came together in relation to development of a resort at Kasauli in the State of Himachal Pradesh on the land owned by the Khosla Group where the Bakshi Group was to finance and manage the entire project.
5. The undisputed facts as presented and extracted from material on record are that a Memorandum of Understanding dated 21.12.2005 (hereinafter “MoU”) was entered between Mr. Deepak Khosla (representing Khosla Group), Mr. R.P. Khosla, Mr. Vikram Bakshi and Montreaux Resorts Private Limited (hereinafter “MRPL”) for development of the project.
6. The MRPL was a Special Purpose Vehicle incorporated under the provisions of the COMPANIES ACT , 1956 for execution of the said project. As the terms of MoU required transferring of shareholding in MRPL by Khosla Group to Mr. Vikram Bakshi subject to fulfilment of certain conditions, an Agreement dated 31.03.2006 was executed between Ms. Sonia Khosla, Mr. R.P. Khosla, Mr. Vikram Bakshi and MRPL, transferring 51% shareholding in MRPL to Mr. Vikram Bakshi. Pursuant to that, Mr. Vinod Surha and Mr. Wadia Prakash (of Bakshi Group) were appointed as Additional Directors in the MRPL.
7. Owing to subsequent disagreements, Ms. Sonia Khosla in her capacity as minority shareholder of MRPL, filed CP No. 114 of 2007 under section 397/398 of COMPANIES ACT , 1956 on 13.08.2007 before CLB alleging oppression and mismanagement by the Bakshi Group, inter alia, contending that her shareholding in MRPL had been illegally reduced from 49% to 36% and sought removal of the Directors representing the Bakshi Group from the Board of Directors.
8. An application, C.A. No. 572/2007, in CP No. 114 of 2007 was filed by the Khosla Group praying to restrain the Bakshi Group from holding a meeting between themselves regarding the affairs of MRPL scheduled on 26.12.2007 claiming that the appointment of Directors belonging to the Bakshi Group was not confirmed as per the Minutes of Annual General Meeting (hereinafter “AGM”) dated 30.09.2006 of MRPL, implying that they had ceased to be Directors and therefore cannot hold meeting of MRPL. CLB accepted the request and vide Order dated 24.12.2007 directed deferment of the aforesaid meeting scheduled for 26.12.2007.
9. Thereafter, while dealing with the CP No. 114 of 2007, the CLB vide Order dated 31.01.2008 directed maintenance of status quo with respect to the shareholding and composition of the Board of Directors in MRPL as existed on the date of the filing of said Company Petition by Ms. Sonia Khos
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(1) Review/recall of order passed in a criminal proceeding – Section 362 of Cr.P.C. explicitly prohibits court after it has signed its judgment or final order disposing of case from altering or revie....
A court cannot review its own judgment once signed, except to correct clerical errors, and inherent powers to recall judgments are limited to jurisdictional errors or violations of natural justice.
The court clarified that a dismissal for default does not amount to a final order, allowing recall and reinstatement for hearings on merits under inherent powers of the High Court.
Petitions dismissed for want of prosecution can be restored under Section 482 Cr.P.C. when there is a bona fide reason for absence, circumventing the prohibition of Section 362 Cr.P.C.
An application for recall of judgment is maintainable as a procedural review, but the specific bar under Section 362 Cr.P.C. prevents the court from reviewing a judgment passed on merit after hearing....
Practice and Procedure - Seeking review and recall of judgment - Court had declined to interfere on account of pendency of Co. Pet. judgment is recalled on this ground alone. Court had not adjudicate....
The High Court lacks the power to review or recall its orders after they have been signed, as it becomes functus officio and such actions are barred under Section 362 of the Criminal Procedure Code.
A criminal appeal cannot be dismissed for non-prosecution without addressing the merits; the High Court cannot alter its judgment post-signature except for clerical errors.
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