M/S ZANDU PHARMACEUTICAL WORKS LTD. AND ORS.versusMD. SHARAFUL HAQUE AND ORS.

A        MIS ZAN DU PHARMACEUTICAL WORKS LTD. AND ORS.
                               v.
                  MD. SHARAFUL HAQUE AND ORS.

                                NOVEMBER 1, 2004

B                 [ARIJIT PASAYAT AND C.K. THAKKER, JJ.]


           Code of Criminal Procedure, 1973:

           s. 482-Quashing of proceedings in a complaint case-Held, if the
C complaint does not disclose any offence or is frivolous, vexatious or
      oppressive, inherent power to quash the proceedings can be exercised-On
     facts, complainant did not approach the court with clean hands, and complaint
      being an abuse of process of law, proceedings are quashed

         s. 468(2)(c)-Cognizance of offence-Period of limitation-Complaint
D filed in 2002 alleging offence to have been committed in 1995-Magistrate
   issuing process in respect of offence uls 4181PC-Held, court could not have
  taken cognizance of the offence, as limitation in such case is 3 years-Penal
  Code, 1860-s. 418-Limitation to file complaint.

           Respondent No. I filed a complaint against the appellants on 9.8.2002
E alleging that the latter interviewed him for the post of Area M.anager as per
     their advertisement, but gave him appointment as Field Officer w.e.f. 9.9.1995,
     and inspite of their assurance they did not appoint him as Area Manager;
     and, as such, the appellants committed offences under ss. 406 and 409 IPC.
     The Magistrate opined that there existed material to proceed against the
F    appellants under s.418 IPC, and accordingly issued summons for their
     presence. The appellants filed a petition under s.482 Cr.P.C. before the High
     Court contending, inter a/ia, that the complaint was barred by limitation; that
     no case was made out against them; that the complainant did not approach the
     court with clean hands and suppressed material facts. The High Court
     dismissed the petition. Aggrieved, the company filed the appeal.
G
           Allowing the appeal, the Court

           HELD: l. The Magistrate has issued process in respect of offence under
     s.418 IPC. The punishment provided for the said offence is imprisonment for
     three years. The period of limitation in terms of Section 468 (2)(c) Cr.P.C.
If                                        790
           ZANDU PHARMACEUTICAL WORKS LTD. v. MD. SHARAFUL HAQUE            791

 being 3 years, the court could not have taken cognizance of the offence. There   A
 was no explanation whatsoever for the inaction between 1995 and 2001. The
-order of the Magistrate does not even refer to either s.468 or s.473 of the
 Code. The High Court clearly erred in holding that the complaint was not hit
 by limitation. (799-B-C, C-D]

         2. Jurisdiction u/s 482 Cr.P.C. may be exercised (i) to give effect to an B
 order under the Code, (ii) to prevent abuse of the process of court, and (iii) to
 otherwise secure the ends of justice. In a proceeding instituted on complaint,
 exercise of the inherent powers to quash the proceedings is called for only if
 the complaint does not disclose any offence or if it is frivolous, vexatious or
 oppressive. The factual position in the instant case clearly shows that the C
 complainant did not come to the court with clean hands and the complaint was
 nothing but a sheer abuse of the prQcess of law. This is a case where the
 power under s.482 should have been exercised. The High Court unfortunately
 did not take note of the guiding principles as laid down in Bhajan Lal's* case
 thereby rendering the judgment indefensible. The judgment of the High Court
 is set aside and the proceedings initiated by the complaint lodged are quashed. D
                                                   (796-B-C, 797-G-H; 799-D-E)

       State ofHaryana v. Bhajan Lal, (1992) Suppl. (1) 335 and R.P. Kapur v.
 State of Punjab, AIR (1960) SC 866, relied on.

      Janata Dal v. HS. Chowdhary, (1992] 4 SCC 305; Raghubir Saran (Dr.)         E
v. State of Bihar, AIR (1964) SC 1; Dhanalakshmi v. R. Prasanna Kumar,
(1990] Supp. SCC 686; State of Bihar v. P.P. Sharma, AIR (1996) SC 309;
Rupan Deol Bajaj v. Kanwar Pal Singh Gill, (1995] 6 SCC 194; State ofA.era/a
v. O.C. Kuttan, AIR (1999) SC 1044; State of U.P. v. O.P. Sharma, (1996) 7
SCC 705; Rashmi Kumar v. Mahesh Kumar Bhada, (1997) 2 SCC 397;
Satvinder Kaur v. State (Govt. of NCT of Delhi), AIR (1996) SC 2983 and           F
Rajesh Bajaj v. State NCTof Delhi, (1999] 3 SCC 259 and State ofKarnataka
v. M Devendrappa and Anr., (2002) 3 SCC 89, referred to.

     CRIMINAL APPELLATE JURISDICTION: Criminal Appeal Nos. 1241
of2004.
                                                                                  G
       From the Judgment and Order dated 28.8.2003 of the Patna High Court
in Crl.M. Nos. 32354 of2002.

     R.F. Nariman, Manish Mohan, Gautam Godara, Dhirender Kumar and
Ugra Shankar Pd. with him for the Appellants.                                     H
    792                     SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A        A.K. Srivastava, A.K. Prasad, Kishan Datta, Mrs. Sunita R.Singh and
    B.B. Singh with him for the Respondents.
                                                                                       Ii
          The Judgment of the Court was delivered by                                   }

          ARIJIT PASA YAT, J. Leave granted.
B
          Appellants call in question legality of the judgment rendered by a
    learned Single Judge of the Patna High Court holding that the issuance of
    summons to the appellants by learned Judicial Magistrate, 1st Class, Patna
    in complaint case no. I6 I3 (C) of 2002 filed by the respondent no. I is proper.

C         Factual background in nutshell is a~ follows:

            Respondent no. I (hereinafter referred to as the 'complainant') filed a
    complaint on 9.8.2002 alleging that the appellants· had committed offences
    punishable under Sections 406 and 409 of the Indian Penal Code; I860 (in
    short the 'IPC'). The date of occurrence was indicated to be bern;een I 2. 7.1995
D to 8.5.2002. The basic allegations in the complaint were that·an advertisement
    was issued by the appellant no. I seeking applications for appointment to the
    post of Area Manager. The complainant, who was then working in another
    concern applied for the post, was called to the in!"rview on 14. 7. I 995 and was
    asked to report at the Bombay office Qf the appellant no.I-company o.n
E 1.8.1995 for training. After completion of the tI:aining period the complainant
    was asked to report to the Patna depot. He ;was given appointment from
    9.9. I 995 by letter dated 1.9.1995 wherein it was indicated that.he was appointed
    as Field Officer and not Area Manager. According to the respondent, on
    receipt of the appointment letter the complainant asked the concerned officials
    i.e. the other accused persons as to how he was being appointed as Field
F · Officer when he had appeared at the interview for the post of Area Manager.
    He was assured that the letter for the post of Area Manager will be issued
    in the. first week of April, 1996. But no such letter came to be issued and he
    was not appointed as Area Manager. Grievance _was, therefore, made 'that the
  · accused persons had initially deceived him by appointing as Field Officer and ·
    not as Area Manager, though he was assured that the appointment letter in .
G that regard will he issued. Therefore, they were liable to face trial for offences
    punishable under Sections 406 and 409 IPC.

          Statement of complainant was recorded on 13.2.2002. By order dated ·
    8.10.2002 the learned Judicial Magistrate held that sufficient material existed
H   to proceed ·under Section 418 IPC against the appellants and,: therefore,
    ZANDU PHARMACEUTICAL WORKS LTD. v. MD. SHARAFUL HAQUE [PASAYAT,J.] 793

summons were issued for their appearance. An application under Section 482         A
of the Code of Criminal Procedure, 1973 (in short the 'Code') was filed before
the High Court challenging legality of the order and summons. It was, inter
alia, submitted that complaint was mis-conceived; the complainant had not
come to Court with clean hands and had suppressed material facts. It was
stated that the complainant had filed a Title Suit no.178/2002 before the
learned Sub-Judge claiming his transfer order was ma/a fide. The prayer for        B
interim protection was rejected. Case 11.0.11/99 has been filed before the
Labour Court in which complainant claimed certain payments and
compensation. There was no grievance made of any cheating neither in the
civil suit nor in the matter pending before the Labour Court. The complaint
was stale, and in any event, beyond the prescribed period of limitation as         C
provided in Section 468 of the Code. It was pointed .out that there was no
proof of the complainant having resigned from his previous employment.
There was no material to show commission of any offence even if complaint
petition is considered in its entirety. No foundation for proceeding under
Section 418 of the Code was made out. For the first time in 2002 the alleged
breaches were agitated. Stand of the complainant on the other hand was that        D
finally his claim was rejected on 15.12.2001 and subsequently his services
were terminated on 29.4.2002. That being so, the plea of complainant havin&
been filed beyond the µeriod of limitation cannot be maintained. T~e_ petition
was, as noted above, rejected by the High Court.

      In support of the appeal, Mr_. R.F. Nariman, learned senior counsel          E
submitted that the High.Courflias-missed the essential features of the case.
In the_complaifif petition there is no reference to the letter dated 5.17.2001
which forms foundation for the High Court's conclusion to hold that the
application was not belated. In the complaint petition a clearly wrong statement
was made that the complainant had never accepted appointment as Field              F
Officer. On the contrary, in his endorsement below the letter of appointment
on 9.9.1995 he has in his own signature stated as follows:

        "I. have gone through the terms and conditions stated hereinabove in
        my appointment letter and I accept them in toto. I will join your
        company with effect from lst August, 1995. l declare that my date of G
        birth is l.3.1959 and in support I submit my documentary evidence."

      Another interesting feature is that a letter is purported to have been
written on 9.9.1995, the existence of which is very much in doubt. The
complainant claims to have written that he was unable to send copy of t~e
joining letter. As noted above, he has clearly done so. Therefore, complainant     H
    794                     SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A   has fabricated documents to suit his own purpose. In the matter pending
    before the Labour Court which was filed on 6. 7.1999 also the complainant has
    not made any reference to the so called illegality in his appointment as Field
    Officer, and on the other hand he has clearly stated that he was employed
    with the company and posted as Field Officer. Similar is the position -in the
    suit filed in 2002, challenging the order of transfer. There is no explanation
B   for the silence between 1995 to _2001. Therefore, it is submitted that the High
    Court was not justified in rejecting the application. Further offence in terms
    of Section 418 IPC is clearly not maqe out. Therefore, the learned Magistrate
    was not justified in directing issuance of summons.

C          In response, learned senior counsel for complainant-respondent no. I
    submitted that based on the assurance held out that he will be appointed as
    Area Manager, the complainant had resigned from the job he was holding on
    the date of joining. He raised his protest when he was appointed as Field
    Officer. He continuously made grievances and finally when i1is claim was
    rejected by letter dated 5.12.200 l, he filed a complaint and, therefore, the same
D   is within time.

         Exercise of power under Section 482 of the Code in a case of this nature
  is the exception and not the rule. The Section does not confer any new
  powers on the High Court. It only saves the inherent power which the Court
  possessed before the enactment of the Code. It envisages three circumstances
E under which the inherent jurisdiction may be exercised, namely, (i) to give
  effect to an order under the Code, (ii) to prevent abuse of the process of
  court, and (iii) to otherwise secure the ends of justice. It is neither possible
  nor desirable to lay down any inflexible rule which would govern the exercise
  of inherent jurisdiction. No legislative enactment dealing with procedure can
F provide for all cases that may possibly arise. Courts, therefore, have inherent
  powers apart from express provisions of law which are necessary for proper
  discharge of functions and duties imposed upon them by law. That is the
  doctrine which finds expression in the section which merely recognizes and
  preserves inherent powers of the High Courts. All courts, whether civil or
  criminal possess, in the absence of any express provision, as inherent in their
G constitution, all such powers as are necessary to do the right and to undo
  a wrong in course. of administration of justice on the principle "quando lex
  aliquid alicui concedit, concedere videtur et id sine quo res ipsae esse non
  potest" (when the Jaw gives a person anything it gives him that without which
  it cannot exist). While exercising powers under the section, the court does not
H function as a court of appeal or revision. Inherent jurisdiction under the
    ZANDU PHARMACEUTICAL WORKS LTD. v. MD. SHARAFUL HAQUE (PASAYA T,J] 795

section though wide has to be exercised sparingly, carefully and with caution A
and only when such exercise is justified by the tests specifically laid down
in the section itself. It is to be exercised ex debito justitiae to do real and
substantial justice for the administration of which alone courts exist. Authority
of the court exists for advancement of justice and if any attempt is made to
abuse that authority so as to produce injustice, the court has power to
prevent abuse. It would be an abuse of process of the court to allow any B
action which would result in injustice and prevent promotion of justice. In
exercise of the powers court would be justified to quash any proceeding if
it finds that initiation/continuance of it amounts to abuse of the process of
court or quashing of these proceedings would otherwise serve the ends of
justice. When no offence is disclosed by the complaint, the court may examine C
the question of fact. When a complaint is sought to be quashed, it is
permissible to look into the materials to assess what the complainant has
alleged and whether any offence is made out even if the allegations are
accepted in toto.

     lnR.P. Kapurv. State ofPunjab, AIR(l960) SC 866 this Court summarized         D
some categories of cases where inherent power can and should be exercised
to quash the proceedings.

        (i) where it manifestly appears that there is a legal bar against the
        institution or continuance e.g. want of sanction;
                                                                                   E
        (ii) where the allegations in the first information report or complaint
        taken at its face value and accepted in their entirety do not constitute
        the offence alleged;

        (iii) where the allegations constitute an offence, but there is no legal
        evidence adduced or the evidence adduced clearly or manifestly fails       F
        to prove the charge.

      In dealing with the last case, it is important to bear in mind the distinction
between a case where there is no legal evidence or where there is evidence
which is clearly inconsistent with the accusations made, and a case where
there is legal evidence which, on appreciation, may or may not support the G
accusations. When exercising jurisdiction under Section 482 of the Code, the
High Court would not ordinarily embark upon an enquiry whether the evidence
in question is reliable or not or whether on a reasonable appreciation of it
accusation would not be sustained. That is the function of the trial Judge.
Judicial process should not be an instrument of oppression, or, needless H
    796                    SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A   harassment. Court should be circumspect and judicious in exercising discretion
    and should take all relevant facts and circumstances into consideration before
    issuing process, lest it would be an instrument in the hands of a private
    complainant to unleash vendetta to harass any person needlessly. At the
    same time the section is not an instrument handed over to an accused to
    short-circuit a prosecution and bring about its sudden death. The scope of
B   exercise of power under Section 482 of the Code and the categories of cases
    where the High Court may exercise its power under it relating to cognizable
    offences to prevent abuse of process of any court or otherwise to secur~ the
    ends of justice were set out in some detail by this Court in State of Haryana
    v. Bhajan Lal (1992) Supp 1 335. A note of caution was, however, added that
C   the power should be exercised sparingly and that too in rarest of rare cases.
    The illustrative categories indicated by this Court are as follows:

           "(I) Where the allegations made in the first information report or the
           complaint, even if they are taken at their face value and accepted in
           their entirety do not prima facie constitute any offence or make out
D          a case against the accused .

          . (2) Where the allegations in the first information report and other
            materials, if any; ·accompanying the FIR do not disclose a cognizable
            offence;·justifying an investigation by police officers under Section
            156( 1) of the Code except under an order of a Magistrate within the
E           purview of Section 155(2) of the Code.

           (3) Where the uncontroverted allegations made in the FIR or comp 1aint
           and the evidence collected in support of the same do not disclose the
           commission of any offence .and make out a case against th~ accused.

F          (4) Where the allegations in the FIR do not constitute a cognizable
           offence but constitute only a non-cognizable offence, no investigation
           is permitted by a police officer without an order of a Magistrate as
           contemplated under Section 155(2) of the Code. ·

           (5) Where the allegations made in the FIR or complaint are so absurd
G          and inherently improbable on the basis of which no prudent person
           can ever reach .a just conclusion that there is sufficient ground for
           proceeding against the accuse.d.

            (6) Where there is an express legal bar engrafted in any of the
            provisions of the Code or the Act concerned (under which a criminal
H           proceeding is instituted) to the institution and continuance of the
      ZANDU PHARMACEUTICAL WORKS LTD. v. MD. SHARAFULHAQUE [PASA YAT,J.]     797
          proceedings and/or where there is a specific provision in the Code or     A
          Act concerned, providing efficacious redress for the grievance of the
          aggrieved party.

          (7) Where a criminal proceeding is manifestly attended with ma/a fide
          and,tor where the proceeding is maliciously instituted with an ulterior
          motive for wreaking vengeance on the accused and with a view to           B
          spite him due to private and personal grudge."

   As noted above, the powers possessed by the High Court under Section 482
   of the Code are very wide and the very plenitude of the power requires great
  .caution In its exercise. Court must be careful to see that its decision in exercise
   of this power is based on sound principles. The inherent power should not C
   be exercised to stifle a legitimate prosecution. The High Court being the
   highest court of a State should normally refrain from giving a prima facie
   decision in a case where the entire facts are incomplete and hazy, more so
   wh~n· the evidence has not been collected and produced before the Court and
   the issues involved, whether factual or legal, are of magnitude and cannot be D
   seen in their true perspective without sufficient material. Of course, no hard-
   and~fast rule can be laid down in regard to cases in which the High Court will
.. exen;ise its extraordinary-jurisdiction of quashing the proceeding at any stage.
   (See: Janata Dal.v. H. S. Chowdhary, [1992] 4 SCC 305, and Raghubir Saran
   (Dr.) v. State of Bihar, AIR ( 1964) SC 1). It would not be proper for the High
   Court to analyse the case of the complainant in the light of all probabilities E
   in order to determine whether a conviction would be sustainable and on such
   premises arrive at a .conclusio.n that the proceedings are _to be quashed. It
   would be erron.eous to assess the material before it and conclude that the
   complaint cannot be proceeded with. In a proceeding instituted on complaint,
   exercise of. the inherent powers to quash the proceedings is called for only F
   in a case where the complaint does not disclose any offence or is frivolous,
   vexatious or oppressive. If the allegations set out in the complaint do not
   constitute the offence of which cognizance has been taken by the Magistrate,
   it is open to the High Court to quash the same ii} exercise of the inherent
 · powers under Section 482 of the Code. It is not, however, necessary that there
   should be meticulous analysis of the case before the trial to find out whether G
   the case would end in conviction or acquittal. The complaint has to be read
   as a whole. If it appears that on consideration of the allegations in the light
   of the statement made on oath of the complainant that the ingredients of the
   offence or offences are disclosed and there is no material to show that th~
   complaint is ma/a fide, frivolous or vexatious, in that event there would be
                                                                                    H
    798                     SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A   no justification for interference by the High Court. When an information is
    lodged at the police station and an offence is registered, then the ma/a fides
    of the informant would be of secondary importance. It is the material collected
    during the investigation and evidence led in court which decides the fate of
    the accused person. The allegations of ma/a fides against the informant are
    of no consequence and cannot by themselves be the basis for quashing the
B   proceedings. (See: Dhanalakshmi v. R. Prasanria Kumar, [1990] Supp SCC
    686, State of Bihar v. P. P. Sharma, AIR (1996) SC 309; Rupan Deol Bajaj v.
    Kanwar Pal Singh Gill, [1995] 6 SCC 194, State of Kera/av. O.C. Kuttan, AIR
    (1999) SC 1044, State ofUP. v. 0. P. Sharma, [1996] 7 SCC 705, Rashmi Kumar
    v. Mahesh Kumar Bhada, [1997] 2 SCC 397, Satvinder Kaur v. State (Govt.
C   ofNCT of Delhi, AIR ( 1996) SC 2983 and Rajesh Bajaj v. State NCT of Delhi,
    [1999] 3 sec 259.

        The above position was recently highlighted in State of Karnataka v.
    M Devendrappa and Anr., [2002] 3 SCC 89.

D          The factual position as highlighted above clearly goes to show that the
     complainant had not come to Court with clean hands. There was no explanation
    .whatsoever for the inaction between 1995 and 2001. The High Court seems
     to have been swayed by the fact that the appellants have rejected claim of
     the complainant on 5.12.200 I. It failed to notice that the communication dated
     5.12.2001 was in response to the letter of the complainant dated 24.11.2001.
E
          Section 468 of the Code deals with delay in taking cognizance after
    lapse of the period of limitation. It reads as follows:

            "468. BAR TO TAKING COGNIZANCE AFTER LAPSE .OF THE
            PERIOD OF LIMITATION:
F
            (I) Except as otherwise provided elsewhere in this Code, no Court
            shall take cognizance of an offence of the category specified in sub-
            section (2), after the expiry of the period of limitation.

            (2) The period of limitation shall be -
G                 (a)   six months, if the offence is punishable with fine only;

                  (b)   one year, if the offence is punishable with imprisonment
                        for a term not exceeding one year;

                  (c)   three years, if the offence is punishable with imprisonment
H
      ZANDUPHARMACEUTICAL WORKS LTD. v. MD. SHARAFUL HAQUE [PASA YAT, J.]       799
                     for a term exceeding one year but not exceeding three             A
                     years.

         (3) For the purposes of this section, the period of limitation, in relation
         to offences which may be tried together, shall be determined with
         reference to the offence which is punishable with the more severe
         punishment or, as the case may be, the most severe punishment."               B
       The learned Magistrate has issued process in respect of offence under
Section 418 IPC. The punishment provided for said offence is imprisonment
for three years. The period of limitation in terms of Section 468(2)(c) is 3 years.
That being so, the Court could not have taken cognizance of the offence.
Section 473 of the Code provides for extension of period in certain cases. This C
power can be exercised only when the Court is satisfied on the facts and in
the circumstances of the case that the delay has been properly explained or
that it is necessary to do so in the interest of justice. Order of learned
Magistrate does not even refer to either Section 468 or Section 4 73 of the
Code. High Court clearly erred in holding that the complaint was not hit by D
limitation. As noted above, there was not even a reference that the letter
dated 5.12.200 I was in response to the letter of complainant dated 24.11.200 I.
The factual position clearly shows that the complaint was nothing but a sheer
abuse of the process of law and this is a case where the power under Section
482 should have been exercised. The High Court unfortunately did not take
note of the guiding principles as laid down in Bhajan Lal 's case (supra), E
thereby rendering the judgment indefensible. The judgment of the High Court
is set aside, the proceedings initiated by the complaint lodged are quashed.
The appeal is allowed.

RP.                                                               Appeal allowed.