The main legal point established is that S.4 IPC permits the application of Indian penal laws to Indian citizens abroad, and S.188 Cr.P.C. allows the Indian courts to 'deal with' the offender, including conducting investigation, without the need for sanction from the Central Government.

Jagannadha Rao, CJ.

The writ petition raises the question of the jurisdiction of the Kerala Police, in the context of S.4 of the Indian Penal Code and Ss.4 and 188 of the Criminal Procedure Code, to conduct investigation against the petitioner, who is an Indian citizen, in respect of certain offences said to have been committed by the petitioner in the United Arab Emirates against respondents 5 and 6 in writ petition, who had lodged Ext. P1 complaint dated 17-12-1990 in the State of Kerala.

2. It is the case of respondents 5 and 6 in the complaint, Ext. P1 dated 17-12-1990, that the writ petitioner, while working as Manager in the Shop of the fifth respondent in the U.A.E. had diverted to his own accounts a sum of 7,82,737 UAE Dirhams. Total sum is said to be about Rs. 90 lakhs. Petitioner, it is alleged, is guilty of criminal misappropriation of funds. The fifth respondent lodged a complaint with the Al A in Civil Court and by the time the Court passed a prohibitory order preventing the petitioner from leaving UAE, petitioner escaped to India, via. Jordan. It is alleged that the money acquired by the above said misappropriation has been sent to India through various Banks, to his accounts. Some money was allegedly smuggled into India through clandestine methods. These acts, it is alleged, amount to dishonest misappropriation, criminal breach of trust and cheating.

3. Learned counsel for the petitioner contends that inasmuch as the complaint is that the offences took place in a foreign country, the police in India have no power of 'investigation'. It is argued that while S.4 is part of the substantive law, S.188 Cr.P.C. read with S.4 thereof, permits only 'inquiry and trial' in India with the sanction of the Central Government and inasmuch as S.188 Q.P.C. is in Chapter VIII relating to 'inquiry and trial', that Section cannot enable 'investigation' by the Indian police, in respect of an offence allegedly committed abroad. Unless there is an extradition treaty between India and the foreign country, no investigation is permissible in India. Further, learned counsel contends that Indian police cannot go to the foreign country forgathering evidence and even if they do, such evidence will not be admissible in India. Indian Courts cannot have extra-territorial jurisdiction.

4. On the other hand, learned Government Pleader and learned counsel for the fifth and sixth respondents contend that under S.188 of the Cr.P.C, the police can 'deal with' the offender and the said words include 'investigation' also. Such investigation does not require sanction of the Central Government.

5. The points that arise for consideration are:

(1) What are the principles applicable in regard to extra-territorial jurisdiction of Criminal Courts in respect of an offence by an Indian citizen which is assumed to have been completed in a foreign country?

(2) What is the scope and effect of S.4 of the Indian Penal Code read with Ss.4,188, 2(g) and 2(h) of the Code of Criminal Procedure?

6. Point No. 1: - In respect of offences allegedly committed by an Indian citizen in a foreign country, particularly where the offence is exclusively completed in such country, the question arises whether the accused can be dealt with by the criminal courts of the country of which he is a citizen. Several important general principles are evolved to cover such a situation and connected problems. These principles have been extensively considered by several writers of great repute and what we propose to state below is mainly culled out from the views expressed by leading writers.

7. In the early 17th Century, says Lotika Sarkar, when Bodin's 'Republic' was becoming the ideological justification of the Renaissance State, through the concept of sovereignty, criminal jurisdiction began to be based rather on the principle of territoriality.

1. "The proper Law of Crime in International Law" by Lotika Sarkar (1962) II International & Comparative Law Quarterly, pps. 446 to 470.

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