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Manohar Lal Sharma v. Union Of India .
Factual and Procedural Background
The orders dated 25 July 2014 and 1 September 2014 arise out of writ proceedings concerning alleged irregularities in the allocation of coal blocks. The Central Bureau of Investigation (CBI) had seized various documents during its probe. Questions subsequently arose about access to those documents by Income-Tax Authorities and about the expeditious trial of offences under the Penal Code, Prevention of Corruption Act, Prevention of Money-Laundering Act and allied statutes. The Supreme Court issued a series of administrative and clarificatory directions: disposing of interlocutory applications, appointing a dedicated Special Judge and Special Public Prosecutor, transferring all related cases to that court, and ensuring that no subordinate court could stay or impede the investigation or trial. A later sitting on 1 September 2014 granted time to the Union of India and three industry associations to file affidavits following the Court’s judgment of 25 August 2014, and approved the Special Public Prosecutor’s request for additional prosecutorial assistance.
Legal Issues Presented
- Whether the Supreme Court’s earlier order dated 8-5-2013 (2014) 2 SCC 703 restricted Income-Tax Authorities from inspecting documents seized by the CBI in the coal block allocation investigation.
- How to ensure an effective, exclusive and expedited judicial process for trials arising out of the coal block allocation cases, including the appointment of a Special Judge and a Special Public Prosecutor.
- Administrative follow-up on paragraph 157 of the Court’s judgment dated 25-8-2014 (2014) 9 SCC 516, specifically the filing of affidavits by the Union of India and industry associations.
Arguments of the Parties
The opinion does not contain a detailed account of the parties' legal arguments.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Order dated 8-5-2013 (2014) 2 SCC 703 |
Earlier directions issued by the Supreme Court in the coal block allocation matter. | Clarified that nothing in the 8-5-2013 order prevents competent Income-Tax officers from inspecting CBI-seized documents and obtaining copies relevant to tax proceedings. |
| Judgment dated 25-8-2014 (2014) 9 SCC 516, para 157 |
Called for responses/affidavits from the Union of India and specified industry associations regarding the coal block allocations. | Court granted the Union and three associations time until 8-9-2014 to file the affidavits contemplated by para 157. |
Court's Reasoning and Analysis
- The Bench interpreted its earlier order of 8-5-2013 as never intending to bar statutory tax authorities from lawfully accessing evidence. To remove any doubt, it expressly permitted Income-Tax officers of competent rank to inspect and copy CBI-seized documents for use in proceedings under the Income-Tax Act.
- Recognising the breadth and complexity of the coal allocation prosecutions, the Court deemed it necessary to create a specialised trial mechanism. It therefore directed the competent authorities to issue notifications appointing Mr Bharat Prashar (Delhi Higher Judicial Service) as the Special Judge exclusively for coal block cases.
- For effective prosecution, the Court appointed Mr R.S. Cheema, Senior Advocate, as Special Public Prosecutor (SPP), authorised him to select two assisting advocates, and ordered CBI to provide full access to evidence, including case diaries.
- To maintain uniformity and speed, all pending coal allocation cases in Delhi courts were transferred to the Special Judge, with a blanket direction that any request to stay or impede investigation/trial could be made only before the Supreme Court.
- On 1-9-2014 the Court found reasonable the SPP’s request for three Senior Public Prosecutors (A.P. Singh, Sanjay Kumar and V.K. Sharma) and directed their attachment to assist him.
- The Court also accommodated the Attorney General and senior counsel for industry bodies by granting additional time to file affidavits required by its 25-8-2014 judgment.
Holding and Implications
Core Rulings:
- IA No. 9689 of 2014 disposed of with clarification permitting Income-Tax Authorities to access CBI-seized documents.
- Crl. MP No. 11736 of 2014 and IAs Nos. 9 & 10 of 2014 rejected.
- Mr Bharat Prashar directed to be appointed Special Judge; notifications to issue within two weeks.
- Mr R.S. Cheema appointed Special Public Prosecutor; three Senior Public Prosecutors attached to assist him.
- All Delhi cases relating to coal block allocation transferred to the Special Judge; only the Supreme Court may entertain applications to stay or delay proceedings.
- Time granted until 8-9-2014 for filing of affidavits; matters listed for 9-9-2014.
Implications: The orders remove any procedural obstacle to tax authorities’ access to evidence, establish a streamlined judicial and prosecutorial framework dedicated to coal allocation offences, and centralise control over potential delays in the Supreme Court itself. They directly affect the parties involved but do not purport to create new substantive legal precedent beyond the specific administration of the coal block allocation litigation.
Order dated 25-7-2014
(Before R.M Lodha, C.J and Madan B. Lokur and Kurian Joseph, JJ.)
IA No. 9689 of 2014 in WP (Crl.) No. 120 of 2012
1. In light of IA No. 9689 of 2014 dated 23-4-2014 made by the Income Tax Authorities, it is clarified that the order dated 8-5-2013 (2014) 2 SCC 703 passed by this Court shall not come in the way of Income Tax Authorities of competent rank to inspect the documents seized by CBI in connection with the coal block allocation case of M/s Hindalco Industries Ltd. or any other case with the objective of ascertaining whether the same are relevant from the perspective of proceedings under the Income Tax Act in the cases of Aditya Birla group or any other case and to obtain copies of documents so ascertained to be relevant.
2. IA No. 9689 of 2014 stands disposed of.
Crl. MP No. 11736 of 2014 in WP (Crl.) No. 120 of 2012
3. Crl. MP No. 11736 of 2014 is rejected.
IAs Nos. 9 and 10 of 2014 in WP (C) No. 463 of 2012
4. IAs Nos. 9 and 10 of 2014 are rejected.
WP (Crl.) No. 120 of 2012 and WP (C) No. 463 of 2012
5. With regard to Item 1 Serial 11 of the report dated 2-7-2014 submitted by two Vigilance Commissioners, some difficulty has been pointed out by CBI in the submission note dated 25-7-2014. CBI may bring above difficulty to the notice of the two Vigilance Commissioners. An appropriate order on the submission note of CBI shall be passed by us after the remarks are submitted by the Central Vigilance Commission (CVC).
6. In pursuance of our order dated 18-7-2014 WP (Cri) No. 120 of 2012, the Registrar General, Delhi High Court has intimated to the Secretary General of this Court that the Hon'ble the Chief Justice of Delhi High Court has been pleased to nominate Mr Bharat Prashar, an officer of Delhi Higher Judicial Service for being posted as Special Judge to deal and exclusively try the offences pertaining to coal block allocation matters under the Penal Code, 1860, Prevention of Corruption Act, 1988, Prevention of Money-Laundering Act, 2002 and other allied offences.
7. We, accordingly, direct the competent authorities to issue requisite notifications appointing Mr Bharat Prashar, an officer of Delhi Higher Judicial Service as Special Judge for the above purpose. The notifications shall be issued within two weeks from the date of communication of copy of this order.
8. We also order that Mr R.S Cheema, Senior Advocate shall be appointed as Special Public Prosecutor by the Government of India to conduct the prosecution of the offences pertaining to coal block allocation matters on behalf of CBI and Enforcement Directorate. On such appointment, Mr R.S Cheema may choose two other advocates, who, in his opinion, will be of assistance in the matter. While doing so, Mr R.S Cheema may keep in view the magnitude and complexities of the case.
9. The Special Public Prosecutor shall have access to the entire evidence/material including case diaries collected in the course of investigation. We direct CBI to render all necessary assistance to the Special Public Prosecutor.
10. All cases pending before different courts in Delhi pertaining to coal block allocation matters shall stand transferred to the Court of the Special Judge as aforenoted. We also make it clear that any prayer for stay or impeding the progress in the investigation/trial can be made only before this Court and no other court shall entertain the same.
11. List this group of matters on 1-9-2014 at 2 p.m
Order dated 1-9-2014
(Before R.M Lodha, C.J and Madan B. Lokur and Kurian Joseph, JJ.)
12. In light of para 157 of our judgment of 25-8-2014 (2014) 9 SCC 516, Mr Mukul Rohatgi, learned Attorney General, Mr K.K Venugopal, learned Senior Counsel for Coal Producers Association and Dr Abhishek Manu Singhvi, learned Senior Counsel for Sponge Iron Manufacturers Association made their submissions. They, and also the learned Senior Counsel for the Independent Power Producers Association of India prayed for some time to file respective affidavits.
13. Their prayer is reasonable. The affidavits may be filed by the Union of India and the above three Associations by 8-9-2014.
14. List the matters on 9-9-2014 at 10.30 a.m
15. A report dated 1-9-2014 has been submitted by the Central Bureau of Investigation (CBI). It is stated that Shri R.S Cheema has been appointed as Special Public Prosecutor by the Government of India vide Notification dated 27-8-2014 in cases pertaining to allocation of coal blocks as per this Court's order dated 25-7-2014. It is also stated in the report that Shri R.S Cheema has now requested for attachment of three Senior Public Prosecutors, namely, (1) Shri A.P Singh, Senior Public Prosecutor, ACB, CBI, Guwahati, (2) Shri Sanjay Kumar, Senior Public Prosecutor, Special Crime 1, CBI Headquarter, New Delhi, and (3) Shri V.K Sharma, Senior Public Prosecutor, ACB, CBI, Delhi to assist him in cases pertaining to allocation of coal blocks.
16. We are satisfied that the request made by Special Public Prosecutor, Shri R.S Cheema is reasonable and may be accepted. We order accordingly. We direct that the above three Senior Public Prosecutors working with CBI shall assist Shri R.S Cheema, Special Public Prosecutor.
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