2021 Supreme(Online)(Guj) 7200
HIGH COURT OF GUJARAT
Gita Gopi, J
Sanjay Jerambhai Viramgama – Appellant
Versus
State of Gujarat – Respondent
Criminal Misc. Application No. 279 of 2020
For the Appellants/Petitioners: Narendra K. Amin
For the Respondents: Pranav Trivedi
A power of attorney holder cannot be held criminally liable for the principal's prior fraudulent acts solely by virtue of the agency, as the agent is not responsible for acts occurring before the creation of the agency or acts outside the scope of their authority.
Headnote:(A) Constitution of India - Art. 226 and 227 - Code of Criminal Procedure, 1973 - S. 482 - Indian Penal Code - Sections 193, 177, 260, 465, 467, 471, 472, 473, 474, 475, 484, 420, 120B and 470 - Power of Attorney - Agent’s liability - Agent acting under power of attorney acts on behalf of principal and is not personally responsible for principal's prior fraudulent acts - If allegations in FIR do not prima facie constitute an offence, proceedings are liable to be quashed under S. 482 CrPC. (Paras 12, 17, 18, 19)
Facts of the case:
Petitioner filed a petition to quash an FIR where he was arrayed as an accused solely based on being a power of attorney holder for the main accused who allegedly submitted forged documents to the revenue authority in 2007-2008. The petitioner was appointed as power of attorney holder in 2011, years after the alleged forgery occurred. The petitioner contended he was just an agent representing the principal in legal proceedings.
Findings of Court:
The court held that an agent appointed by a power of attorney acts on behalf of the principal, and any fraud or misrepresentation by the principal prior to the creation of the agency does not bind the agent. The court found no evidence of conspiracy involving the petitioner and determined the allegations did not disclose the commission of any offence by him.
Issues: Whether an agent acting under a power of attorney can be held liable for the criminal acts of the principal performed before the power of attorney was executed.
Ratio Decidendi: An agent holds a fiduciary role bound by the terms of the power of attorney; the agent's liability for misrepresentation is limited to acts performed within the authority during the course of business and cannot retrospectively implicate the agent in the antecedent fraudulent acts of the principal.
Result: Petition allowed; proceedings against the petitioner quashed.
| Table of Content |
|---|
| 1. petitioner seeks to quash fir proceedings. (Para 1 , 2 , 3) |
| 2. arguments challenging validity of arraignment as accused. (Para 4 , 5 , 6 , 7 , 8 , 9 , 10) |
| 3. arguments concerning insufficient evidence of criminal conspiracy. (Para 11 , 12) |
| 4. scope of power of attorney liability. (Para 13 , 14 , 15 , 16 , 17) |
| 5. application of section 482 crpc for quashing. (Para 18 , 19) |
ORAL JUDGMENT
1. Rule. Learned APP waives service of notice of rule on behalf of the respondent-State.
2. The petitioner is before this Court under Article 226 and 227 of the Constitution of India and Section 482 of the Code of Criminal Procedure, 1973, for quashing and setting aside the FIR being CR No.11193003201041 of 2020 registered with Amreli City Police Station, Amreli for offences punishable under Sections 193, 177, 260, 465, 467, 471, 472, 473, 474, 475, 484, 420, 120B and Section 470 of the Indian Penal Code and all the consequential proceedings initiated in pursuance thereof.
3. The petitioner states that he is not named in the FIR nor there are any allegations leveled against him to array him as an accused. The petitioner states that he is holding a power of attorney dated 28/06/2011 given to him by accused no.1 Valibhai Sulemanbhai Metar and states that the said power of attorney was notarized on 19/07/2011 and on the basis of power entrusted to him by accused Valibhai Sulemanbhai Metar, he is representing the cases pending before the revenue authority. He states that only role of the petitioner is to engage the lawyer and submit necessary replies on behalf of accused no.1 under his instruction. The petitioner has only represented accused no.1 in five cases before the revenue authority noted in the FIR. He states that he was not power of attorney holder at the time when allegedly forged documents were submitted before the Collector in the year 2007-2008.
4. Mr. Narendra K. Amin, learned advocate for the petitioner submitted that as per the allegations in the FIR, present petitioner as power of attorney holder of Valibhai Metar, the claimant of the land mentioned in the FIR is representing him before the Courts. The FIR contends that alleged forged documents were in possession of accused no.1 Valibhai which were seized by the police from the accused and sent to FSL for examination on 25/01/2020.
5. Mr. Amin, learned advocate submitted that the petitioner was summoned to remain present on 02/01/2020 by special investigation team headed by the Superintendent of Police, Amreli and his statement was recorded by the Investigating Officer and on the same day, accused no.1 was also present before the police, from whom the Investigating Officer seized all the original documents with reference to the application made to the Collector Office in the year 2007-2008. Mr. Amin, learned advocate states that no regular process and procedure was adopted for the seizure.
6. Mr. Amin, learned advocate further submitted that though the FIR is registered after examination of the documents, the complainant has not mentioned the name of the petitioner in the FIR. The Superintendent of Police has mentioned nothing against the present petitioner in his report dated 29/05/2020 to the Collector requesting for registration of the FIR. Mr. Amin, learned advocate submitted that there is no evidence against the petitioner to rope him in the matter and to array him as an accused.
7. Mr. Amin, learned advocate stated that the petitioner as a power of attorney holder has all the rights to appear before the competent court of law to agitate the case on behalf of accused Valibhai Metar and that itself would not suggest any criminality.
8. Mr. Amin, learned advocate referred to the following decisions in support of the case of the petitioner.
1. Kasthuri Radhakrishnan & Ors. vs. M. chinniyan & Ors. reported in AIR 2016 SC 609
2. Sheila sebstian vs. R. Jawaharaj and Ors. reported in AIR 2018 SC 2434
3. Kishan singh vs. Gurpal Singh and Ors. reported AIR 2010 SC 3624