Criminal Law – Quashing of Proceedings – Petition to quash criminal proceedings against the petitioner who was accused of quid pro quo investments and receiving undue benefits from government projects – The High Court dismissed the petition, emphasizing the limited scope of Section 482 CrPC and the need for trial to determine the factual disputes and criminal liability [Paras 1-60].

Criminal Conspiracy and Corruption – Allegations of bribery through investments in companies linked to a political figure – The petitioner allegedly invested Rs. 854.50 crores in companies owned by Y.S. Jagan Mohan Reddy, resulting in allotment of the Vanpic Project – Allegations also include fraudulent acquisition of lands and control over the Special Purpose Vehicle (SPV) created for the project [Paras 12-36].

Judicial Findings – The High Court reiterated the principles for exercising inherent powers under Section 482 CrPC, stressing that the power should be used sparingly and in exceptional cases – The Court found a prima facie case against the petitioner warranting a trial – Contentions regarding the bona fides of investments, procedural errors in cognizance, and allegations of mala fide prosecution were rejected [Paras 44-57].

Decision – Petition Dismissed – The Court dismissed the petition to quash the proceedings, allowing the trial to proceed – Petitioner granted liberty to file a discharge petition before the trial court [Paras 59-60].

Seized Vehicles – Return Pending Trial – Petitioner, the registered owner of the vehicle No. WB 32J-4623, challenged the rejection of his request for the vehicle’s return, seized for allegedly transporting commercial quantities of ganja – High Court examined precedents and legal provisions regarding interim custody of seized vehicles – Held that seized vehicles may be returned to registered owners under specific conditions to ensure availability during trial and prevent misuse [Paras 1-14].

Section 451 and 457 of Cr.P.C. – Applicability to NDPS Cases – Cited Supreme Court and High Court judgments affirming that provisions under Sections 451 and 457 Cr.P.C. apply to cases under the NDPS Act – Conditions for interim return of vehicles include furnishing a bond, ensuring non-alteration of the vehicle, and presenting it as required during trial [Paras 11-12].

Decision – Revision Allowed – Impugned order dated 12.12.2022 by the Special Court, Tamluk, Purba Medinipur set aside – Directed return of vehicle to petitioner upon furnishing bond with surety of Rs. 8,00,000/- and conditions ensuring vehicle’s presentation during trial – Connected applications disposed of, and interim orders vacated [Paras 13-19].

Income Tax Law – Hybrid System of Accounting – Methodology Adopted by the Company – Principal Commissioner of Income Tax, Shillong challenged the company’s use of the hybrid system of accounting, arguing it was in contravention of Section 145 of the Income Tax Act, 1961 – Tribunal had quashed the revisionary proceedings under Section 263, considering them erroneous and prejudicial to the interest of the revenue – Tribunal’s decision upheld – Appeal dismissed [Paras 1-13].

Revision of Orders – Section 263 of the Income Tax Act – Powers of Principal Commissioner – Principal Commissioner set aside the original assessment and ordered reassessment – Tribunal found that conditions for invoking Section 263 were not satisfied as the original order was neither erroneous nor prejudicial to revenue [Para 10].

Real vs. Hypothetical Income – Application of Judicial Pronouncements – Company’s adoption of cash basis for interest on debtors upheld by the Tribunal – Supported by precedent from the Punjab and Haryana High Court and the Supreme Court, emphasizing that hypothetical income should not be taxed [Paras 6-7].

Consistency in Accounting Practice – Tribunal’s Rationale – Tribunal noted consistent judicial approval of the company’s method in previous assessment years – Judicial precedents highlighted the necessity of adhering to consistent practices in the absence of material changes [Paras 7-12].

Decision: Appeal dismissed – Tribunal’s order upheld – No costs [Para 13].

Mesne Profits – Determination and Liability - Revision application challenging the order for mesne profits post-termination of lease – Defendant in unlawful possession – Plaintiffs entitled to mesne profits from date of lease termination – Court draws adverse inference against defendant for withholding profit information – Valuation based on Ready Reckoner rates upheld – No error in Appellate Bench directing payment till possession delivery [Paras 1-42].

Inquiry under Order 20 Rule 12 of CPC – Scope and Application - Appellate Court has authority to correct trial court’s error and ensure mesne profits awarded until actual possession transfer – Provisions under Order XLI Rule 33 permit granting relief not sought in cross-objections – Judicial notice of property valuation trends applied appropriately [Paras 12-14, 27-30, 33-38].

Conduct of Public Sector Undertakings – Duty to Act Fairly - BPCL’s conduct criticized for allowing agent to use premises post-lease termination – Court emphasizes duty of fairness for public sector entities – Liability for mesne profits upheld despite agent’s occupation [Paras 22-25].

Decision: Civil Revision Application dismissed – Orders by Small Causes Court and Appellate Bench upheld – BPCL directed to pay mesne profits until delivery of possession – Court underscores need for adherence to procedural fairness by public sector undertakings [Para 42].
 

Criminal Law – Conviction for Attempt to Murder – Appeal – Conviction under Section 307 IPC for attempting to murder the informant by assaulting and throwing her out of a moving car – Trial court’s judgment re-evaluated – Prosecution’s evidence primarily from the informant’s testimony – Reliability of the victim’s testimony upheld despite minor inconsistencies – Injury classified as simple by medical evidence – Conviction under Section 307 IPC set aside; conviction modified to Section 323 IPC for voluntary causing hurt – Sentence reduced accordingly [Paras 1-21].

Victim's Testimony – Credibility – Informant’s detailed account of assault in the car, corroborated by medical evidence and testimony of the truck driver who provided assistance – Prosecution’s evidence considered sufficient to support conviction for causing simple injuries voluntarily – No substantial evidence supporting intent to kill [Paras 7-21].

Modification of Sentence – Given the nature of injuries as simple, conviction altered from Section 307 IPC to Section 323 IPC – Sentence reduced to six months' simple imprisonment and fine – Relief of set-off for time already served granted [Paras 20-21].

Decision: Appeal partly allowed – Conviction under Section 307 IPC set aside – Appellant convicted under Section 323 IPC – Sentenced to six months' simple imprisonment and a fine of Rs. 1000, with a default sentence of one month – Trial court to ensure execution of the modified sentence [Paras 20-21].

Prevention of Corruption – Conviction Set Aside – Appellant, a junior clerk, was convicted for accepting a bribe for influencing a judicial officer – Conviction based on evidence of demand, acceptance, and chemical analysis confirming phenolphthalein powder – Court noted that the charge framed under Section 8 of the Prevention of Corruption Act was inappropriate as it should have been under Sections 7 and 13 – Prosecution lacked proper sanction under Section 19 of the Act – Conviction quashed, liberty granted to seek fresh sanction and retry if necessary [Paras 1-61].

Demand and Acceptance of Bribe – Essential Proof – Reiterated that for conviction under Sections 7 and 13, demand and acceptance must be proven either by direct or circumstantial evidence – Constitution Bench's ruling on the necessity of proving both elements emphasized – Deficiencies in procedural handling noted [Paras 30-32].

Procedural Errors – Effect of Wrong Charge – Erroneous charge under Section 8, instead of Section 7 and 13 – Held that absence of sanction and incorrect framing of charges invalidated the trial – Retrial permissible with appropriate sanction [Paras 49-53].

Defective Investigation – Not a Ground for Acquittal – Court held that defective investigation alone does not warrant acquittal if substantive evidence is available – Importance of fair trial and due process for the accused balanced with public interest in upholding the integrity of the judiciary [Paras 34-36, 57-58].

Decision: Appeal allowed – Conviction and sentence quashed – Case remanded for potential retrial upon obtaining proper sanction [Para 61].

Negotiable Instruments Act – Section 138 – Conviction and sentence for dishonoured cheque – Petitioner issued cheque for Rs. 3,00,000/- which was dishonoured – Trial Court convicted petitioner, sentenced to three months’ imprisonment, and ordered compensation of Rs. 4,05,000/- – Conviction upheld by Additional Sessions Judge – Petitioner deposited compensation amount, sought compounding of offence – Respondent-complainant agreed to compounding [Paras 1-6]. 

Compounding of Offence – Section 147 of the Negotiable Instruments Act – Entire compensation paid – No objection from respondent for compounding – Court compounded offence as per Section 147 and Supreme Court guidelines in Damodar S. Prabhu – Conviction and sentence set aside – Petitioner directed to pay litigation cost of Rs. 10,000/- and 5% of cheque amount as compounding fee [Paras 7-8]. 

Decision – Revision Petition Allowed – Held – Conviction and sentence set aside – Offence compounded – Petitioner acquitted – Litigation cost and compounding fee imposed – Amount deposited to be released to complainant – Compliance within four weeks mandated to avoid penal consequences [Para 8]. 

Criminal Law – Quashing of Proceedings – Petitioner sought to quash proceedings under Section 482 Cr.P.C. for alleged offences under Section 498A IPC – Contention that Section 498A applies only to cruelty by husband or his relatives, and not applicable to live-in relationships – Prosecution conceded absence of a legal marriage between the parties – High Court referenced Supreme Court and prior High Court rulings on similar matters – Quashed proceedings for lack of legal marital relationship [Paras 1-10].

Section 498A IPC – Applicability – High Court held Section 498A IPC requires a valid marital relationship – Live-in relationships do not constitute ‘husband’ or ‘relative’ as per the statutory definition – Cited decisions in Shivcharan Lal Verma v. State of Madhya Pradesh and Unnikrishnan @ Chandu v. State of Kerala confirming the requirement of a legal marriage for Section 498A to apply [Paras 6-9].

Decision – Petition Allowed – Annexure-A2 Final Report and all further proceedings in Crime No. 939/2023 of Quilandy Police Station, Kozhikode, now pending as C.C. No. 1471/2023 before the Judicial First Class Magistrate Court, Quilandy, stand quashed [Para 10].

Criminal Law – Murder Conviction – Appellant convicted for the murder of Girija Devi – Eyewitness account from the informant (mother-in-law of the deceased) contradicted by her own statements and other witnesses declared hostile – Conviction based on unreliable sole testimony – No motive or recovery of the weapon – Appellant acquitted due to lack of evidence [Paras 1-30].

Eyewitness Testimony – Reliability – Sole eyewitness, the mother-in-law of the deceased, found unreliable due to contradictions in her testimony and statements of other witnesses who turned hostile – Court emphasizes necessity for credible and consistent witness testimony for conviction [Paras 9-11, 23].

Hostile Witnesses – Impact on Prosecution – Majority of witnesses, including Punam Kumari @ Sonam Kumari (PW-2), Sangita Devi (PW-7), and Saroti Kumari (PW-8), declared hostile – Prosecution’s inability to establish case beyond reasonable doubt due to lack of corroborative evidence from witnesses [Paras 7, 10-14].

Evidence – Weapon Recovery and Motive – No recovery of weapon used in the alleged crime – Lack of clear motive and any incriminating material found at the place of occurrence (P.O.) – Prosecution’s failure to provide substantive evidence linking the appellant to the crime [Paras 20-25].

Decision – Appeal Allowed – Conviction and sentence set aside – Appellant acquitted due to insufficient evidence – Directed to be released forthwith if not required in any other case [Paras 26-32].