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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Sections 465 and 466 read with Section 34 of the Indian Penal Code
  • Sections 465, 466 read with Section 34 of the Indian Penal Code
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Sections 465 and 466 read with Section 34 of the Indian Penal Code
  • Sections 465, 466 read with Section 34 of the Indian Penal Code
Smart Summary

Factual and Procedural Background

The appellant lodged a criminal complaint (Case No. 2167/Misc./1990) before the Additional Chief Metropolitan Magistrate, XXXVIIth Court, Esplanade, Mumbai, accusing Shri C.R. Alimchandani (Chairman and Managing Director of Stup Consultants), Shri P.B. Joshi (Principal Manager — Finance and Company Secretary) and Shri K. Sivaram (Joint Secretary and Manager — Finance) of filing a forged certificate purportedly issued by the Bombay Municipal Corporation in pending civil proceedings. The complaint alleged offences under Sections 465 and 466 read with Section 34 of the Indian Penal Code.

On 12 November 1990, the Magistrate issued summons, finding a prima facie case against all three accused. The accused challenged this in Criminal Writ Petition No. 1276 of 1991 before the Bombay High Court. By judgment dated 13 October 1998, the High Court quashed the proceedings against Accused 1 and 3, holding that the complaint did not sufficiently implicate them, but allowed the case to proceed against Accused 2.

Two Special Leave Petitions (SLPs) were thereafter filed in the Supreme Court:

  • SLP (Crl.) No. 3889 of 1999 by Accused 2 (P.B. Joshi) — dismissed.
  • SLP (Crl.) No. 304 of 1999 by the complainant challenging the High Court’s order quashing proceedings against Accused 1 and 3.

Legal Issues Presented

  1. Whether the Bombay High Court erred in quashing criminal proceedings against Accused 1 and 3 on the ground that the complaint did not specify their individual roles in the alleged forgery.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court found that the complaint expressly alleged that “the accused have together forged” the impugned certificate. At the summons stage, a prima facie allegation against all three accused suffices; requiring a detailed delineation of each individual’s role was held to be an unduly stringent standard. The Court noted that the document was produced in court on behalf of the company for which Accused 1 was Chairman and Managing Director and Accused 3 was Joint Secretary and Manager (Finance), thereby providing a reasonable nexus between them and the alleged forgery. Consequently, the High Court’s interference with the Magistrate’s order issuing summons was deemed unjustified.

Holding and Implications

HOLDING: The appeal is allowed; the Bombay High Court’s order is set aside and the Magistrate’s order issuing summons to all three accused is restored.

Implications: Criminal proceedings will now continue against Accused 1, 2 and 3. The accused remain free to raise all defences available to them in accordance with law. The decision is confined to the propriety of quashing at the summons stage and sets no new precedent beyond reinstating the trial.

    Tarun K. Shah v. C.R Alimchandani And Others

    Order

    SLP (Crl.) No. 3889 of 1999

    1. After hearing learned counsel for the parties, we see no reason to interfere with the decision of the High Court. The special leave petition is dismissed accordingly.

    SLP (Crl.) No. 304 of 1999

    2. Leave granted.

    3. We have heard learned counsel for the parties.

    4. The appellant herein had filed a complaint against Shri C.R Alimchandani, Chairman and Managing Director of Stup Consultants, Shri P.B Joshi, Principal Manager (Finance) and Company Secretary of the said Company and Shri K. Sivaram, Joint Secretary and Manager (Finance) in the Court of Additional Chief Metropolitan Magistrate, XXXVIIth Court, Esplanade, Mumbai being Case No. 2167.Misc. of 1990.

    5. The complaint which was filed alleged that the said three accused had committed offence under Sections 465 and 466 read with Section 34 of the Indian Penal Code inasmuch as they had filed a certificate in the court in a pending proceeding between the petitioner and the Company, a document purported to have been issued by Bombay Municipal Corporation, which document was a forged one.

    6. On the basis of the complaint which was filed summons were issued by the Magistrate who came to the conclusion vide his order dated 12-11-1990 that prima facie offence was disclosed against all the three accused persons under Sections 465, 466 read with Section 34 of the Indian Penal Code.

    7. Against the issuance of the summons, the accused filed Criminal Writ Petition No. 1276 of 1991 in the Bombay High Court. By the impugned judgment dated 13-10-1998, the learned Judge came to the conclusion that the allegations contained in the complaint, some portions of which were extracted in the judgment, were not sufficient to implicate Accused 1 and 3.

    8. According to the learned Judge Accused 2, namely, P.B Joshi, stood implicated in the forgery of the said document. The learned Judge quashed the proceedings against Accused 1 and 3.

    9. Special Leave Petition (Crl.) No. 3889 of 1999 of P.B Joshi has been dismissed by us.

    10. After hearing learned counsel for the parties and without going into any great detail, we find that the High Court erred in quashing the proceedings which had been initiated against Respondents 1 and 3. The learned Judge came to the conclusion that it was incumbent upon the part of the complainant to plead the role of each accused in the making or manufacturing of the document in question. This document had been produced in the court on behalf of the Company of which Accused 1 was Chairman and Managing Director and Accused 3 was Joint Secretary and Manager (Finance). In the complaint it was specifically stated: “I submit that the accused have together forged the subject certificate (letter) of viz. inspection extract in respect of A-Ward No. 1316 (2-2A) BBB-12….”

    11. Without expressing any opinion on the merits of the case so that no prejudice is caused to any party, we are of the opinion that the complaint which was filed specifically alleged that all the three accused had in a sense together forged the document which was presented in the Court. It is possible that this allegation may be incorrect, whole or in part. We are not considering this question at this stage.

    12. The High Court, in our opinion, in the facts of the present case, was not justified in quashing the order of the Magistrate who had issued summons to Accused 1 to 3. For the aforesaid reasons, the order of the High Court is set aside and that of the trial court is upheld. The appeal is allowed. All the accused will be entitled to raise such pleas as are open to them in accordance with law.

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    Comments

    Tarun K. Shah v. C.R Alimchandani And Others
    (Jul 18, 2000)