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S.P. Gupta Petitioner v. State

Delhi High Court
Jul 30, 2015
Smart Summary (Beta)

Structured Summary of the Opinion (Sunil Gaur, J.)

Factual and Procedural Background

The petitioner is an accused in three FIRs: FIR No. 90/2000, FIR No. 99/2002 and FIR No. 148/2002, registered for offences including cheating. The State, through the Public Prosecutor, filed applications under Section 321 of the Code of Criminal Procedure (Cr.P.C.) seeking withdrawal from prosecution on 24 November 2011. A subsequent application (moved on 16 December 2011) sought to withdraw the earlier Section 321 application; the provision under which the second application was moved is not disclosed in the opinion. The trial court, by a common order dated 7 January 2012, permitted withdrawal of the applications under Section 321 Cr.P.C. The petitioner challenged that order by three separate revision petitions, which were dismissed by a common impugned order dated 15 November 2014. Because the subject matter and grounds were identical across the three petitions, they were heard and disposed of together by this common judgment.

Legal Issues Presented

  1. Whether an application for withdrawal from prosecution (filed under Section 321 Cr.P.C.) can be withdrawn subsequently at the unfettered will of the Public Prosecutor.
  2. Whether the Public Prosecutor acted independently (i.e., applied his independent mind) in filing the application under Section 321 Cr.P.C. and in subsequently seeking withdrawal of that application.
  3. Whether the courts below erred in permitting withdrawal of the application under Section 321 Cr.P.C. without properly examining the bona fides of the Public Prosecutor or without giving reasoned consideration to the applications and related objections (including documents sought under Section 91 Cr.P.C.).

Arguments of the Parties

Petitioner's Arguments

  • There is no provision under which an application under Section 321 Cr.P.C. can be withdrawn; reliance was placed on Supreme Court decisions (Patel Narshi Thakershi v. Pradyuman Singh ji Arjun Singh AIR 1970 SC 1273; R.R. Verma v. Union of India (1980) 3 SCC 402; Subhash Chander v. State (Chandigarh Administration) AIR 1980 SC 423) to the effect that when quasi‑judicial power is exercised, power of review must be conferred by statute specifically or by necessary implication.
  • The Public Prosecutor extraneously withdrew the application without any change of circumstances; both courts below permitted withdrawal without application of mind and misinterpreted Sheonandan Paswan v. State of Bihar AIR 1983 SC 194.
  • Decisions such as Mohanlal Rao v. State of Rajasthan (Cr. Rev. P. No. 1115/2012) and M. Ramappa v. The State (ILR 1963 AP 126) support the proposition that applications ought to be considered on their merits and a simplicitor or cryptic withdrawal order is impermissible.
  • The trial court hastily allowed withdrawal and summarily dismissed the petitioner's application under Section 91 Cr.P.C. seeking relevant documents; the dismissal was cryptic and unwarranted.

Respondent-State and Complainant's Arguments

  • The impugned orders are not unlawful: it is the prerogative of the State whether to withdraw the prosecution, and the Public Prosecutor has the ultimate decision-making role in that regard.
  • The application to withdraw the Section 321 application was supported by the consent of the Government (and thus valid); therefore the authorities relied upon by the petitioner are not helpful and the petitions should be dismissed.
  • There is no requirement for passing a fully reasoned order when dealing with such applications, according to the respondents.
  • Separately, the respondent-complainant contended that the original application under Section 321 by the Public Prosecutor was fraudulent and not maintainable on facts and in law, and sought dismissal of the petitions on that basis.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Vipul Gupta v. State (W.P. (C) No. 3470/2012) (Coordinate Bench, 14 June 2012) Consideration of legality where the Lieutenant Governor agreed with proposal of Director of Prosecution not to press withdrawal; the earlier order left open the right to independent consideration before the criminal court. The revisional court relied on this decision; the present court found that reliance to be erroneous because Vipul Gupta showed facts where instructions were issued to the APP and thus ran contrary to the requirement that the Public Prosecutor independently apply his mind.
Patel Narshi Thakershi v. Pradyuman Singh ji Arjun Singh, AIR 1970 SC 1273 Principle that when quasi‑judicial power is exercised, review power must be conferred by statute specifically or by necessary implication. Relied upon by petitioner to argue that withdrawal/withdrawal-of-withdrawal steps could not be exercised without appropriate statutory basis; cited as support for need to scrutinize exercise of quasi‑judicial power.
R.R. Verma v. Union of India, (1980) 3 SCC 402 Same general principle as above regarding review of quasi‑judicial acts and requirement of statutory authority for such review. Relied upon by petitioner in support of the contention that the withdrawal mechanism must conform to statutory requirements and be open to scrutiny.
Subhash Chander v. State (Chandigarh Administration), AIR 1980 SC 423 Same general principle regarding quasi‑judicial power and requirement for statutory review‑power. Relied upon by petitioner as part of the authority that quasi‑judicial acts must have statutory review safeguards.
Sheonandan Paswan v. State of Bihar, AIR 1983 SC 194 Discretion to withdraw from prosecution is that of the Public Prosecutor; the Public Prosecutor cannot surrender that discretion to someone else and must act as a free agent. The court treated this dictum as central: the Public Prosecutor must independently apply his/her mind; the trial court's and revisional court's reliance on executive instructions was held to be incorrect because it undermined this principle.
Mohanlal Rao v. State of Rajasthan (Cr. Rev. P. No. 1115/2012) (19 March 2012) Supports the proposition that applications should be considered on merits and that simplistic/cryptic withdrawal orders are impermissible (as relied upon by petitioner). Relied upon by petitioner; the bench noted these authorities to emphasize that the courts below ought to have considered the merits and bona fides rather than allow abrupt withdrawal.
M. Ramappa v. The State, ILR (1963) AP 126 Authority cited by petitioner for the proposition that matters of withdrawal must be examined on their merits and judicial scrutiny is required. Used by petitioner to support the argument for full merits consideration; the court observed this legal position had been ignored by the courts below.
State of Bihar v. Ram Naresh Pandey, AIR 1957 SC 389 Mandates parameters for judicial scrutiny when an executive/non‑judicial act (like withdrawal) is involved; court must be satisfied that executive function has not been improperly exercised. The opinion cites this as authoritative support for the proposition that courts have a wide judicial discretion to ensure withdrawal is not improperly exercised or collusive.
Ouseph Yakob v. Jose, 1959 Crl.L.J. 1170 The reason for withdrawal must satisfy the judicial conscience of the court; withdrawal cannot be lightly given merely because the Public Prosecutor asks for it. The court reiterated this principle to require that the trial court must examine whether reasons for withdrawal are satisfactory and bona fide.
Anees Mohinuddin @ Ameer @ Abu Ayub Ansari v. The State of Andhra Pradesh, 2008 Crl.L.J. 1476 The court, in granting or refusing consent to withdrawal, must examine (i) whether the grounds of withdrawal are valid and (ii) whether the application is bona fide or collusive. The opinion applied this yardstick to Section 321 withdrawal applications and required trial court scrutiny of bona fides and validity of grounds for withdrawal.

Court's Reasoning and Analysis

The court proceeded by examining the nature of withdrawal from prosecution and the respective roles of the executive (Public Prosecutor) and the judiciary. The analysis unfolded as follows:

  1. Characterization of withdrawal: The court treated withdrawal from prosecution as an executive and non‑judicial act but emphasized that the court has a wide judicial discretion to be exercised on well‑established principles. That discretion requires satisfaction that the Public Prosecutor's executive act has not been improperly exercised or used to interfere with the course of justice for illegitimate purposes (citing State of Bihar v. Ram Naresh Pandey).
  2. Standards for judicial scrutiny: The court reiterated established authorities (Ouseph Yakob; Anees Mohinuddin) holding that the reason for withdrawal must satisfy the judicial conscience, and the court must examine (i) validity of the grounds for withdrawal and (ii) whether the application is bona fide or collusive.
  3. Requirement of independent mind of the Public Prosecutor: Central to the analysis was the principle from Sheonandan Paswan that the discretion to withdraw must be exercised by the Public Prosecutor independently and cannot be surrendered to others (for example, the Government or the Lieutenant Governor). The court found that this principle continues to hold true.
  4. Assessment of trial court order: On scrutiny of the trial court's order, the court concluded the trial court shirked its responsibility to examine the bona fides of the Public Prosecutor, particularly given the inconsistent positions taken by the same Public Prosecutor within a few days. The first application under Section 321 averred that a commercial transaction was being given a criminal colour and there was no likelihood of conviction; the subsequent application, filed a few days later by the same Public Prosecutor, averred sufficient evidence existed. That stark contrast required examination of bona fides, which the trial court failed to undertake, and the trial court summarily dismissed the Section 91 Cr.P.C. application without explanation.
  5. Critique of the revisional court: The revisional court went further than the trial court by endorsing the withdrawal even where it appeared that the Public Prosecutor may have acted under instructions or influence. The revisional court's reliance on Vipul Gupta (where the facts showed that instructions were issued to withdraw) was found to be misplaced because those facts ran contrary to the statutory requirement that the Public Prosecutor independently apply his/her mind.
  6. Conclusion from the legal matrix: Applying the cited precedents, the court held that the Public Prosecutor must independently exercise the discretion to withdraw and the judiciary must ensure bona fides and valid grounds before permitting such withdrawal. The courts below had failed to apply these benchmarks and therefore their orders were perverse.

Holding and Implications

Core Ruling: The impugned orders of the trial court and the revisional court permitting the withdrawal of the application under Section 321 Cr.P.C. were quashed.

Directions and Immediate Consequences:

  • The matter was remitted to the trial court with a specific direction: the trial court is to decide, within four weeks, the second application dated 16 December 2011 (Annexure P-13) seeking withdrawal of the earlier Section 321 application.
  • The trial court must decide that application in the light of the legal principles set out in this opinion, and after taking into consideration the document(s) filed by the petitioner along with the application under Section 91 Cr.P.C.
  • With these directions, the three petitions and related applications were disposed of by the present court.

Implications beyond the parties: The opinion reiterates established principles concerning the independent role of the Public Prosecutor and the supervisory role of the court in preventing improper executive interference in prosecutions. The judgment's direct effect is to quash the impugned orders and to order reconsideration by the trial court; the opinion does not purport to announce a novel legal principle beyond the authorities it applies.

Show all summary ...

Sunil Gaur, J.:— Whether an application for withdrawal from prosecution can be withdrawn at any time at the sweet will of Public Prosecutor, is the question raised in the above-captioned three petitions.

2. Petitioner is an accused in three FIRs i.e FIR No. 90/2000; FIR No. 99/2002 and FIR No. 148/2002, registered for the offences of cheating, etc., in which the State through the Public Prosecutor had filed applications under Section 321 of Cr.P.C for withdrawal from the prosecution. These applications were filed on 24th November, 2011 and then abruptly withdrawn on 16 December, 2011 by moving another application but under which provision of law, is not disclosed. Trial court vide common impugned order of 7 January, 2012 has permitted the Public Prosecutor to withdraw the applications under Section 321 of Cr.P.C The aforesaid order was challenged by way of three separate revision petitions by petitioner which stand dismissed vide common impugned order of 15 November, 2014.

3. Since the subject matter of these three petitions is identical and the grounds on which quashing of the common impugned order is sought, are also on the same lines, therefore, these three petitions were heard together and by this common judgment, they are being disposed of.

4. The question which came up for consideration before the revisional court was whether Public Prosecutor had acted independently while filing application under Section 321 of Cr.P.C and the subsequent application seeking withdrawal of the earlier application under Section 321 of Cr.P.C

5. The learned Revisional Court in the impugned order has relied upon a decision of 14 June, 2012 of a Coordinate Bench of this Court in W.P (C) No. 3470/2012 Vipul Gupta v. State wherein the challenge to the legality of order of 15 December, 2011 of the Lieutenant Governor of Delhi, agreeing with the proposal of Director of Prosecution not to press application for withdrawal of the case against the petitioner was considered and repelled. However, it was made clear in the aforesaid order that the right of independent consideration as to the legality of the withdrawal of the application was left open by observing as under:-

“31. It is not disputed by the petitioners that, in the meantime, the learned M.M has permitted the withdrawal of the application under Section 321 Cr.P.C vide order dated 07.01.2012 It is not disputed by the petitioners that they opposed the withdrawal of the said applications under Section 321 Cr. P.C and that they were heard by the Leaned M.M on the said applications. It is also not in dispute that the petitioners have already preferred the remedy available to them in respect of the orders passed by the Ld. M.M, permitting the withdrawal of the applications under Section 321 Cr.P.C Therefore, the petitioners have not only had the occasion to raise all the issues raised before this court, before the Ld. M.M, but still have the right to pursue the matter further and to raise all the issues available to them in appropriate proceedings.”

6. At the hearing, learned senior counsel for petitioner assailed the impugned orders on the ground that there is no provision under which application under Section 321 of the Cr.P.C can be withdrawn. To submit so, reliance was placed upon Apex Court's decisions in Patel Narshi Thakershi v. Pradyuman Singh ji Arjun Singh ji AIR 1970 SC 1273; R.R Verma v. Union of India (1980) 3 SCC 402 & Subhash Chander v. State (Chandigarh Administration) AIR 1980 SC 423, wherein it has been declared that when quasi judicial power is exercised, then power of review must be conferred by a statute either specifically or by necessary implication.

7. It was vehemently submitted that without any change of circumstances, application for withdrawal from prosecution was extraneously withdrawn by the public prosecutor and the courts below have erred in permitting withdrawal of the application without any application of mind. It was further submitted that both the courts below have gravely erred in misinterpreting the dictum of the Apex Court in Sheonandan Paswan v. State of Bihar AIR 1983 SC 194. Reliance was also placed upon decisions in Cr. Rev. P. No. 1115/2012 Mohanlal Rao v. State of Rajasthan, rendered on 19 March, 2012 & M. Ramappa v. The State ILR (1963) AP 126 to submit on behalf of petitioner that both the applications ought to have been considered and decided on their own merits and simplicitor withdrawal of application under Section 321 of the Cr.P.C by a cryptic order is impermissible in law. Learned senior counsel for petitioner also submitted that courts below have hastily allowed the prosecution to withdraw the application under Section 321 of the Cr.P.C and a cryptic dismissal of petitioner's application under Section 91 of the Cr.P.C to summon the relevant documents to show that the application for withdrawal of application under Section 321 of the Cr.P.C was wholly unjustified.

8. On behalf of respondent-State as well as complainant of this FIR, it was contended that the impugned orders do not suffer from any illegality, as it is the prerogative of the State whether to withdraw the prosecution or not and the ultimate decision to withdraw the prosecution or not, is of the Public Prosecutor and the application for withdrawal of the application under Section 321 of the Cr.P.C was duly supported by the consent of the Government and so, the decisions relied upon by petitioner are of no avail and there is no substance in these petitions, which ought to be dismissed out-rightly, as there is no requirement of passing reasoned orders while dealing with such applications.

9. In addition, it was submitted on behalf of the respondent-complainant that the application under Section 321 of the Cr.P.C by the learned Public Prosecutor was fraudulent and not maintainable on facts and in law. Thus, dismissal of these petitions is sought.

10. The submissions advanced by both the sides have been duly considered in the light of the decisions cited and the impugned orders have been scrutinized. No doubt the withdrawal from prosecution is an executive and non-judicial act but there is a wide discretion with the court, which ought to be exercised judicially on well established principles. That is to say, the court has to be satisfied that the executive function of the Public Prosecutor has not been improperly exercised or that it is not an attempt to interfere with the course of justice for illegitimate purposes. It is within these parameters, the judicial discretion is to be exercised. It is so mandated by the Apex Court in State of Bihar v. Ram Naresh Pandey AIR 1957 SC 389. In Ouseph Yakob v. Jose 1959 Crl.L.J 1170, it has been ruled that the reason for withdrawal must satisfy the judicial conscience of the court. It cannot be lightly given merely because Public Prosecutor has asked for it. It stands reiterated in Anees Mohinuddin @ Ameer @ Abu Ayub Ansari v. The State of Andhra Pradesh 2008 Crl.L.J 1476 that the exercise of power of the court is judicial to the extent that the court, in according or refusing consent, has to see (i) whether the grounds of withdrawal are valid and (ii) whether the application is bona fide or is collusive. It must be remembered that the same yardstick is to be followed when application for withdrawal of application under Section 321 of the Cr.P.C is filed. Particularly when, it was not brought to the notice of this Court during the course of hearing that there was any change of circumstances which led to filing of application seeking withdrawal of the application under Section 321 of the Cr.P.C

11. The true purport of dictum of Apex Court in Sheonandan Paswan (supra) is that it has to see whether the Public Prosecutor has applied his/her mind as a free agent uninfluenced by irrelevant and extraneous considerations. A bare perusal of trial court's order reveals that it had shirked the bounden responsibility of looking into bona fides of the Public Prosecutor in abruptly withdrawing the application under Section 321 of the Cr.P.C after a few days, particularly when in the application under Section 321 of the Cr.P.C, Public Prosecutor has averred in no uncertain terms that a commercial transaction in between the parties is sought to be given a criminal colour and there is no likelihood of conviction on the basis of charge-sheet filed for the offence of criminal misappropriation etc. Strangely, in the second application seeking withdrawal of the first application under Section 321 of the Cr.P.C, the same very Public Prosecutor after a few days has averred that after a thorough examination of the case file and the evidence on record, he found sufficient evidence against the accused persons. The contrast stand taken by the same very Public Prosecutor within a span of a few days certainly calls for examining the bona fides of the second application. Trial court has ducked the real issue by observing that the need to examine the bona fides of the Public Prosecutor stands obliterated in the event of prosecution seeking withdrawal of the application under Section 321 of Cr.P.C and petitioner's application under Section 91 of Cr.P.C has been summarily dismissed by observing that it is unwarranted. Not a word has been said by trial court in its order as to how it is unwarranted.

12. Surprisingly, the learned Revisional Court has gone much ahead of trial court in not only justifying the withdrawal of the application under Section 321 of the Cr.P.C by observing that the change in mind of Public Prosecutor on the dictates or under the influence of another by itself does not justify the consideration of application under Section 321 of the Cr.P.C

13. By relying upon observations made by a Coordinate Bench of this Court in Vipul Gupta (supra), the courts below have disclosed utter non-application of mind, as in Vipul Gupta (supra), it has been categorically held as under:-

“29. XXXXX

The facts of the present case, however, show that definite instructions were issued to the APP for withdrawal from prosecution, and it was not left by the respondents to the Learned APP to decide whether, or not, he should withdraw from prosecution.”

14. The afore-noted factual position runs contrary to the mandate of Section 321 of the Cr.P.C which requires that Public Prosecutor must independently apply his mind as to whether or not, to withdraw prosecution. In Sheonandan Paswan (supra), it has been categorically declared as under:-

“The discretion to withdraw from the prosecution is that of the Public Prosecutor and none else, and so, he cannot surrender that discretion to someone else.”

15. The afore-noted dictum holds the field today as well. Thus, indisputably it is the Public Prosecutor who has to take the call and not the Government or the Lieutenant Governor. So, dismissal of writ petition against grant of consent by Lieutenant Governor to the withdrawal of application under Section 321 of Cr.P.C has been erroneously relied upon by the courts below, particularly when right to pursue remedies before the criminal courts was preserved while deciding the writ petition. The legal position, as highlighted in Ouseph Yakob (supra) and in M. Ramappa (supra), as reiterated in Anees Mohinuddin (supra), has been totally ignored by both the courts below thereby rendering the impugned orders perverse.

16. Consequentially, impugned orders are quashed with direction to the trial court to decide within four weeks the second application of 16 December, 2011 (Annexure P-13) i.e the one for withdrawal of application under Section 321 of the Cr.P.C in the light of the legal position as highlighted above and after taking it into consideration, the document(s) filed by petitioner along with application under Section 91 of Cr.P.C

17. With aforesaid directions, the above captioned three petitions and applications are disposed of.