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1975 Supreme(Cal) 171

CALCUTTA HIGH COURT
SANKAR PRASAD MITRA, SALIL KUMAR DATTA, J.
HASIMARA INDUSTRIES LTD. AND ANOTHER
VERSUS
THE COMPANY LAW BOARD AND OTHERS
A. F. O. O. No. 309 of 1975,
Decided On : 25 -6 -1975.

An investigation under the Code of Criminal Procedure is a "proceeding under the Code" within the meaning of the third clause of Section 96(1), which authorizes the issuance of a general search warrant if the Court considers that the purposes of any inquiry, trial, or other proceeding under the Code will be served by such general search or inspection.

Headnote:

CRIMINAL PROCEDURE CODE - Search Warrant - Validity - Conditions for Issuance - General Search Warrant - Interpretation of Section 96(1) - Investigation Under the Code as a Proceeding Under the Code - Satisfaction of the Court - Requirement of a Speaking Order.

Fact of the Case:

The appellant, Hasimara Industries Ltd., challenged the validity of a search warrant issued by the Chief Presidency Magistrate of Calcutta on June 14, 1971, authorizing a general search of its premises in connection with an investigation into alleged criminal offenses committed by the Bajoria Group of Companies.

Finding of the Court:

The Court upheld the validity of the search warrant, holding that an investigation under the Code of Criminal Procedure is a "proceeding under the Code" within the meaning of the third clause of Section 96(1), which authorizes the issuance of a general search warrant if the Court considers that the purposes of any inquiry, trial, or other proceeding under the Code will be served by such general search or inspection.

Issues: 1. Whether an investigation under the Code of Criminal Procedure is a "proceeding under the Code" within the meaning of the third clause of Section 96(1), which authorizes the issuance of a general search warrant? 2. Whether the Chief Presidency Magistrate had applied his mind to the materials placed before him and was satisfied that an order for a general search should be made?

Ratio Decidendi: 1. The Court interpreted the definition of "investigation" in Section 4(1)(b) of the Code of Criminal Procedure, which includes all proceedings under the Code for the collection of evidence conducted by a police officer or any person authorized by a Magistrate, to mean that an investigation under the Code is a proceeding under the Code. 2. The Court found that the Chief Presidency Magistrate had considered the materials placed before him, including the First Information Report and the petition, and was satisfied that an order for a general search should be made, and that this satisfaction was justified based on the details of alleged manipulation of transactions by the appellants.

Final Decision: The Court dismissed the appeal and upheld the validity of the search warrant.

JUDGEMENT

Sankar Prasad Mitra, C.J. :- In a application under Article 226 of the Constitution which was heard by Mr. Justice P.K. Banerjee, the petitioner, Hasimara Industries Ltd. (the appellant before us) challenged the validity of a search warrant which the Chief Presidency Magistrate of Calcutta had issued on June 14, 1971. Banerjee, J. 13, 1973 has dismissed the application. The present appeal is directed against that judgement.

2. Between July and September, 1970 the Officers of the Directorate of Inspection Company Law Board posted in Calcutta inspected under Section 209(4) of the Companies Act, the books of account, documents and papers of Britannia Engineering Co, Ltd. and some other Companies forming the McLeod Group of Companies now known as the Bajoria Group of Companies. In course of this inspection according to the respondents it appeared from the books of account that the Directors and persons carrying on or contacting the business of the Bajoria Group of Companies acting in conspiracy with each other had committed various illegalities which amounted to cognizable offences punishable under Sections 406/409/420/468/477-A and Section 120-B of the Indian Penal Code.

3. On April 2, 1971, the Under Secretary to the Government of India, Department of Company Affairs acting under the direction of the Secretary, sent a complaint to the Director, Central Bureau of Investigation and Inspector-General of Police, Delhi Special Police Establishment, New Delhi, regarding the commission of the aforesaid offences of criminal breach of trust, criminal misappropriate cheating forgery, falsification of accounts and criminal conspiracy in respect of a sum of more than two crores and two lacs of rupees. It was stated that Chiranjilal Bajoria and his son Anandilal Bajoria were principally involved in the commission of these offences.

4. On receipt of the complaint the Delhi Police Establishment on May 17, 1971, recorded a First Information Report and the Police Investigation No. R. C. 6/71-FS II (Regular Case No. 6 of 1971 of Fraud Squad II, Delhi Special Police Establishment) was commenced. This was the first step in proceeding under Chapter XIV of Part V of the Code of Criminal Procedure, 1898.

5. On June 4, 1971, the Deputy Superintendent of Police of the Delhi Special Police Establishment filed the First Information Report before the Chief Presidency Magistrate Calcutta. The Chief Presidency Magistrate records in the order-sheet that he had seen the report. On the same day, namely, June 4, 1971, the said Deputy Superintendent made an application to the Chief Presidency Magistrate for the issue of search warrant under Section 96 of the Code of Criminal Procedure to search some place of business and to seize incriminating documents therefrom. It was stated that this search warrant was necessary for the purpose of the investigation of the Investigating Officer.

6. The Chief Presidency Magistrate on June 4, 1971 has recorded the following order :

"4-6-71. M.M. Narendra Nath, D.S.P., S.P.E/C.B.I/F. S.II files a petition and prays for issue of 48 s/warrants under Section 96, Cr. P. Code to search the places and to seize the documents mentioned therein. Considered materials placed before me. Perused the petition. Satisfied that the documents mentioned therein would be required for investigation. Issue s/w as prayed for fixing 6-7-71 for return and order."

It is this order of the Chief Presidency Magistrate made on the 4th June, 1971 that is under challenge in the present appeal.

7. On June 10, 1971 the search warrants were executed and a number of documents were seized from the registered office and the mill premises of the petitioners and from various other places.

8. On August 9, 1971 a number of applications under Article 226 of the Constitution was made by McLeod and Co. Ltd. and other allied or associate or sister companies forming the Bajoria Group of Companies for the purpose of restraining police investigation. The appeal we are dealing w


































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