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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 340 CrPC, Penal Code, 1860
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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
  • Section 340 CrPC, Penal Code, 1860
Smart Summary

Factual and Procedural Background

The first respondent filed Civil Suit No. 22 of 2007 before the Calcutta High Court challenging his expulsion from the position of President of the Board of Control for Cricket in India (BCCI). During that suit, he obtained an interim injunction on 20-07-2007 restraining the enforcement of his expulsion.

While the suit was pending, the respondent also moved an application under Section 340 of the Code of Criminal Procedure, 1973 (CrPC) (registered as GA No. 2240 of 2007). He alleged that an affidavit sworn by Ratnakar Shetty, an official of BCCI, contained false statements amounting to offences under Sections 199 and 200 of the Indian Penal Code.

On 12-11-2008 a learned Single Judge of the High Court, without conducting a preliminary enquiry or hearing the defendants, directed an enquiry against Defendants 1-6 under Section 340 CrPC. The defendants appealed to the Supreme Court, resulting in the present order.

Legal Issues Presented

  1. Whether a court can direct the filing of a complaint and order an enquiry under Section 340 CrPC without first conducting the mandatory preliminary enquiry.
  2. Whether the defendants are entitled to an opportunity of being heard before such an order is passed.

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 examined the procedural safeguards embedded in Section 340 CrPC. It noted that the provision requires the court to:

  • Conduct a preliminary enquiry to ascertain whether a false statement prima facie appears to have been made, and
  • Provide the person against whom action is contemplated a reasonable opportunity to be heard.

The Court observed that the High Court’s Single Judge had bypassed both requirements. Consequently, the order directing an enquiry against the defendants lacked procedural foundation. Recognising the importance of due process, the Supreme Court concluded that the impugned order could not stand.

Holding and Implications

APPEALS ALLOWED; IMPUGNED ORDER SET ASIDE; MATTER REMITTED.

The Supreme Court set aside the High Court’s order dated 12-11-2008 and remitted the Section 340 CrPC application to the learned Single Judge for fresh consideration in accordance with law, expressly directing that the defendants be afforded a reasonable opportunity of being heard. All substantive and procedural contentions remain open for the parties. The decision affects only the parties involved and establishes no new substantive precedent beyond reinforcing the procedural mandates of Section 340 CrPC.

    Sharad Pawar v. Jagmohan Dalmiya And Others

    Order

    1. Leave granted. These appeals have been filed against the impugned order of the learned Single Judge of the High Court of Calcutta dated 12-11-2008 passed in an application filed by Respondent 1-plaintiff under Section 340 CrPC in a pending suit bearing Civil Suit No. 22 of 2007.

    2. Brief facts of the case are that the first respondent filed an original suit bearing Civil Suit No. 22 of 2007, before the High Court of Calcutta. The challenge in the suit was expulsion of the first respondent from the post of President of the Board of Control for Cricket in India (for short “BCCI”).

    3. Respondent 1-plaintiff had filed an injunction application, registered as GA No. 1545 of 2007 in CS No. 22 of 2007. The said injunction application was heard at length and was decided on 20-7-2007 by the learned Single Judge granting interim injunction in favour of Respondent 1-plaintiff in terms of Prayers (a) and (c) of the injunction application till the disposal of the suit.

    4. Prior to the passing of the order dated 20-7-2007 in the application for injunction by the learned Single Judge, yet another application under Section 340 of the Code of Criminal Procedure, 1973 was filed by Respondent 1 in the said suit, registered as GA No. 2240 of 2007.

    5. In the application under Section 340 CrPC, it was alleged that the affidavit filed by one Ratnakar Shetty, official of BCCI interfered with the administration of justice having committed the offences punishable under Sections 199 and 200 of the Penal Code, 1860. This application was considered by another learned Single Judge of the High Court of Calcutta and the impugned order was passed, without giving proper and adequate reasons and without affording an opportunity of being heard to the defendants.

    6. By the impugned order, the learned Single Judge has directed that an enquiry be made against Defendants 1 to 6 in the suit. Before passing of the impugned order in the application under Section 340 CrPC, the learned Single Judge did not conduct a preliminary enquiry as contemplated under Section 340 CrPC. The said order is challenged before us in these appeals by the defendants in the suit.

    7. Having heard the learned Senior Counsel for both sides and after perusal of the record, we are of the considered view that before giving a direction to file complaint against Defendants 1 to 6, it was necessary for the learned Single Judge to conduct a preliminary enquiry as contemplated under Section 340 CrPC and also to afford an opportunity of being heard to the defendants, which was admittedly not done.

    8. We, therefore, in the interest of justice, allow these appeals, set aside the impugned order of the High Court passed in the application filed by Respondent 1-plaintiff under Section 340 CrPC and remit the matter to the learned Single Judge to decide the application under Section 340 CrPC afresh in accordance with law, and after affording reasonable opportunity of being heard to the defendants, against whom the learned Single Judge ordered enquiry.

    9. All the contentions are left open to the parties to be raised before the learned Single Judge. The appeals are allowed accordingly.

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    Comments

    Sharad Pawar v. Jagmohan Dalmiya And Others
    (Mar 17, 2010)