Criminal Law – Release of Seizure of Cash – Economic Offence – Conditional Release Directed – The Court allowed the release of ₹15 lakhs seized from the petitioner during CBI investigation in a financial scam case – Held: While the petitioner’s entitlement remains disputed, prolonged retention of cash undermines economic activity – Directed release with safeguards preserving evidentiary value [Paras 1-3, 9-11].

Judicial Discretion – Sections 451 and 457 Cr.P.C. – Seized Property Can Be Released – Court invoked principles from Sunderbhai Ambalal Desai and Manjit Singh to hold that property, including currency, should not stagnate in judicial custody without compelling reason – Mandated detailed panchnama, photographic documentation, and financial security as preconditions for release [Paras 5-6, 9-11].

Economic Utility vs Investigative Integrity – Balance Achieved by Safeguards - Cash to remain available if required during trial – Ordered bank guarantee for 50% amount and other financial security for remainder – Petitioner required to submit undertaking affirming return of funds if directed by court [Paras 11, 14-15].

Guidelines Issued – Comprehensive Framework for Disposal of Seized Property – Court issued broad guidelines for handling and disposal of various types of seized assets, including cash, gold, vehicles, narcotics, electronic devices, and perishable goods – Emphasized minimization of custody time and utility maximization [Paras 12-13, 16-24].

Decision – Revision Allowed – Cash Ordered to be Released with Conditions - Trial court’s rejection of release application set aside – High Court directed release subject to documentation and security measures [Para 13].
 

Criminal Law - Appeal Against Acquittal – Appreciation of Evidence – Section 378(3) CrPC – Acquittal Upheld – The State challenged the acquittal of accused under Sections 307, 323, and 325 IPC read with Section 34 IPC – The High Court held that the trial court’s evaluation of evidence was plausible and well-reasoned – No perversity found warranting interference – Held: Government appeal dismissed [Paras 16-21, 30-31].

Common Intention – Requirement of Pre-Arranged Plan – Section 34 IPC – No Evidence of Pre-Meditation – The Court held that vague and omnibus allegations without attribution of specific roles or proof of pre-arranged plan are insufficient to invoke Section 34 IPC – Absence of direct evidence against the surviving accused negated liability under common intention – Held: Acquittal justified [Paras 15, 23-29].

Medical Evidence – Absence of Corroboration – Non-Matching Injuries – Discrepancy in Prosecution Story – The first informant alleged injuries by lathis, but medical records showed no such injuries or examination – Only one superficial injury found on another victim – No witness identified the assailant – Held: Medical evidence failed to support prosecution version [Paras 24-26].

Parity of Legal Precedents – Mahbub Shah v. Emperor Applied – Distinction Between Similar Intention and Common Intention – The Court relied on Mahbub Shah (AIR 1945 PC 118) to underscore that mere similar intentions cannot substitute for common intention under Section 34 IPC – Held: Inference of common intention must be based on necessary evidence and not assumptions [Para 28].

Standard of Review – Appellate Interference in Acquittal – Judicial Restraint Reiterated – The Court reiterated the principle that appellate interference in acquittal must be based on clear perversity, manifest error, or unsustainable findings – Held: Trial court's judgment reflected a fair and plausible view, hence no interference warranted [Paras 16-21, 30].

Civil Procedure – Rejection of Plaint – Order VII Rule 11(a) & (d) CPC – Cause of Action and Limitation – Respondent filed suit for partition, possession, and injunction in respect of jointly purchased house – Property transferred by registered gift deed dated 02.12.2014 and corrected by deed dated 05.08.2015 – Respondent alleged fraud and misrepresentation by appellant (brother) and relied on MOU dated 10.11.2017 wherein appellant assured re-transfer – Trial Court rejected plaint under Order VII Rule 11(a) CPC for want of cause of action – Lower Appellate Court set aside the order holding that the pleadings disclosed triable issues and remanded the case – Held: Meaningful reading of plaint reveals specific averments alleging fraud and misrepresentation – Cause of action made out – Question whether the respondent will ultimately succeed is not relevant at the stage of Order VII Rule 11 [Paras 14–17].

Pleadings – Fraud and Misrepresentation – Challenge to Gift Deed – Though respondent did not seek specific declaration to set aside the registered gift deed, averments alleging fraud, misrepresentation, and assurance to re-transfer property under MOU dated 10.11.2017 sufficient to infer that transaction was alleged to be void ab initio – Hence, absence of declaratory relief not fatal at threshold – Whether gift deed is void or valid requires objective scrutiny at trial [Paras 15–16].

Limitation – Article 59, Limitation Act – Gift deed executed on 02.12.2014, suit filed on 04.04.2019 – Plea that plaintiff was unaware of true nature of transaction and discovered fraud only later – Limitation being a mixed question of law and fact cannot be determined at stage of Order VII Rule 11 – MOU dated 10.11.2017 corroborated plaintiff’s version and justified filing within limitation [Paras 18–19].

Precedents – Distinguishable Facts – Judgments in Dahiben v. Arvindbhai Kalyanji Bhanusali (2020 SAR (Civ) 793), Rajendra Bajoria v. Hemant Kumar Jalan (2021 SCC OnLine SC 764), K. Akbar Ali v. K. Umar Khan (2021 SCC OnLine SC 238), and Raghwendra Sharan Singh v. Ram Prasanna Singh (2020) 16 SCC 601 distinguished on facts – Suit not sham or illusory; triable issues exist – Reliance placed on G. Nagraj v. B.P. Mruthunjayanna, Civil Appeal No. 2737/2023 (SC), holding that inconsistent or improbable averments do not justify rejection of plaint [Paras 20–25].

Civil Revision Application No. 45/2020 – Coordinate Bench Decision – Earlier decision between same parties on similar facts not binding precedent, as Supreme Court dismissed SLP without reasons – Present case examined independently on merits applying crystallized law [Para 26].

Decision: Appeal dismissed – No perversity or illegality in lower appellate court’s order – Substantial question of law answered in affirmative – Matter to proceed to trial [Para 27–28].

Criminal Law - Dishonour of Cheque – Legal Presumption under NI Act – Conviction Upheld - Accused admitted issuance of cheque but claimed it was issued in connection with a proposed joint business – Trial Court and Appellate Court held that presumption under Sections 118 and 139 of the NI Act was not rebutted – Accused failed to lead any defence evidence despite ample opportunity – Mere denial in Section 313 CrPC statement held insufficient – Held: Conviction under Section 138 of NI Act upheld [Paras 6, 26–28, 36–37].

Additional Evidence – Application under Section 311 CrPC Rejected – No Prejudice Proved - Accused sought to recall witnesses during appeal, but application wrongly filed under Section 311 instead of Section 391 CrPC – Appellate Court held sufficient opportunities were earlier granted – Supreme Court precedents cited holding that additional evidence at appellate stage must meet strict criteria – Held: Dismissal of application valid and proper [Paras 17–22, 25].

Deemed Service of Notice – Notice Returned Unclaimed – Presumption of Service Applies - Accused challenged validity of notice – Court held that notice sent to correct address and returned unclaimed was deemed served under Section 27 of General Clauses Act and Section 114 of Evidence Act – Held: Notice requirement under Section 138 NI Act satisfied [Paras 39–42].

Quantum of Sentence and Compensation – Not Excessive – Two Months’ Simple Imprisonment with ₹8,00,000 Compensation Justified - Court considered delay in proceedings and complainant’s litigation costs – Compensation exceeds cheque amount but aligns with principles laid down in Kalamani Tex and R. Vijayan – Held: Sentence proportionate and not excessive [Paras 45–48].
 

Criminal Contempt – Advocate’s Disruption in Court – Six-Month Imprisonment Imposed – Suo motu contempt proceedings initiated against advocate for entering courtroom without uniform, unbuttoned shirt, using abusive language, and calling judges "goondas" – Court found repeated misconduct on earlier dates including barging into courtroom without summons and defying decorum – Held: Conduct amounts to scandalizing the court and interfering with justice administration – Contemnor sentenced to six months' imprisonment and Rs. 2000 fine, with further one-month jail on default [Paras 1-3, 20-22, 30-31].

Contempt by Repeated Defiance – Pattern of Misconduct – Prior Offences Considered – Court reviewed history of contemnor’s past contempt proceedings from 2003 to 2017, including earlier three-month sentence and two-year entry ban to court premises – Held: Persistent contemptuous behavior shows no remorse; warrants exemplary punishment to uphold public confidence in judiciary [Paras 15-18, 27-30].

Contempt Jurisdiction – Section 14(2) Interpretation – Trial by Successor Bench Permissible – Contemnor argued contempt could only be tried by original initiating bench – Held: Since original judges were transferred, successor bench assigned contempt roster had jurisdiction to proceed – Preliminary objection dismissed [Paras 11-14].

Judicial Record – Sanctity of Court Proceedings – Challenge to Judicial Observation Rejected – Court reiterated that facts recorded by judges during hearings are conclusive and cannot be challenged through affidavits or oral assertions – Held: No counter filed by contemnor; record binding and accepted [Paras 18-19].

Advocate’s Duty – Ethics and Decorum in Courtroom – Professional Misconduct Highlighted – Court emphasized that lawyers must maintain dignity, decorum, and are not entitled to unfounded personal attacks on judiciary – Held: Freedom of expression subject to limits under contempt law; abuse of judicial platform cannot be tolerated [Paras 22-23].

Decision – Contempt Upheld – Debarment Proceedings Initiated – In addition to sentence, notice issued under Chapter XXIV Rule 11(3) of Allahabad High Court Rules to debar contemnor from practicing for 3 years – Contemnor directed to reply by 01.05.2025 and be present on next hearing date [Paras 31-36].

Bail – Sections 307, 452, 147, 148, 149 of the Indian Penal Code, 1860 (IPC) - Second Bail Application – No Change in Circumstance – Petition Dismissed – Petitioner filed second application for regular bail after earlier rejection without demonstrating any substantial change in fact or law – Held: In absence of new material circumstances, successive bail plea amounts to impermissible review of earlier decision [Paras 11-13, 17].

Firearm Recovery – Section 27 Evidence Act – Recovery of Pistol Valid – Petitioner’s statement led to recovery of a pistol later confirmed by FSL to fall within the Arms Act – Held: Recovery supports prima facie involvement, and bail cannot be granted solely based on assertion of innocence [Para 2].

Delay in Trial – No Cogent Proof – No Entitlement to Bail – Though petitioner alleged delay in trial, court records did not support this – Statement of a witness already recorded showed progress in trial – Held: No infringement of right to speedy trial made out [Paras 18-19].

Parity – Bail of Co-Accused – Not Sole Ground for Grant – Petitioner claimed bail on parity as other co-accused were released – Held: Principle of parity not applicable when role of petitioner distinct and more serious, especially when involving use of firearm [Para 19].

Victim Turning Hostile – Not Ground for Bail – Bail Cannot Be Granted Mid-Trial – Petitioner sought bail on ground that victim had not supported prosecution – Held: Discrepancies in testimony not sufficient to grant bail after trial has begun; courts must refrain from interfering mid-trial unless delay is inordinate and unjustified [Paras 20-21].

Decision – Bail Denied – Court found no justification to deviate from earlier order rejecting bail – Held: Present petition dismissed, observations to have no bearing on trial merits [Paras 22-23].

Criminal Law - Juvenile Justice – Trial of Juvenile as Adult – Mandatory Two-Stage Assessment – Trial Held Invalid – Appellant, aged 17, was tried as an adult based solely on preliminary assessment by Juvenile Justice Board – Held: Under Sections 15 and 19 of the JJ Act, trial of juvenile as adult requires two distinct assessments – Children’s Court must conduct independent judicial scrutiny – No such assessment done in this case – Trial process invalidated [Paras 23–33].

Procedural Law – Duty of Children’s Court – Section 19(1) JJ Act – Not an Empty Formality – Held: Sessions Judge merely endorsed Board’s report without giving reasons or evaluating appellant’s mental and physical capacity or understanding of consequences – Statutory obligation of Children’s Court not discharged – Decision to try appellant as adult illegal and caused prejudice [Paras 28–31].

Guidelines – Compliance with SC Mandate – Preliminary and Judicial Assessments Must Be Informed – Referring to Barun Chandra Thakur v. Bholu and Ajeet Gurjar v. State of M.P. – Held: Board’s assessment must be specific, and Children’s Court must apply mind afresh – Guidelines of NCPCR though later in time, reflect mandatory safeguards embedded in statute – Summary approval of Board’s assessment impermissible [Paras 14–22, 29].

Remand – Fresh Determination Required – Judgment Set Aside – Held: Since independent assessment was absent, matter remanded to Children’s Court for fresh inquiry under Section 19 JJ Act – If Court concludes appellant to be tried as adult, it may proceed with pronouncement based on existing evidence – No de novo trial required [Paras 34–35].

Decision: Appeal allowed – Conviction set aside – Case remanded to Children’s Court for conducting proper inquiry under Section 19(1) of the Juvenile Justice Act, 2015 – Preference directed for early disposal [Paras 34–36].

Civil Law - Child Custody – Paramount Consideration of Welfare – Father's Custody Refused – Despite being acquitted of wife's alleged murder, the father was denied custody of the minor son – Court prioritized the child's welfare, observing emotional trauma and the minor's expressed unwillingness to reside with the father – Reiterated that guardianship rights cannot override welfare of the child [Paras 24-25, 36-43].

Natural Guardian – Not Entitled as of Right – G.W. Act – Welfare Overrides Guardianship – The appellant, though the natural guardian, was denied custody as the court emphasized that natural guardianship does not guarantee custody when contrary to the minor’s interest and well-being [Paras 28-29, 48-50].

Preference of the Minor – Significant Factor – Refusal to Stay with Father – The minor had deposed against the father in a murder case and persistently refused to live with him – Held: Minor’s opinion, being of intelligent age and under trauma, must be given due weight [Paras 40-43, 54-55].

Pending Criminal Appeal – Impact on Custody – Custody Denied Despite Acquittal – The father’s acquittal in a criminal case was not considered conclusive – Pending appeal and child’s testimony in earlier proceedings continued to weigh against granting custody [Paras 25, 34-35, 39].

Decision – Custody to Continue with Maternal Grandparents – Custody rightly continued with the maternal family – Court held that the overall development, education, emotional safety, and well-being of the child was better served with the respondents – Appeal dismissed [Paras 33, 46-47, 52-53].

Criminal Law – Quashing - Cruelty under Section 498-A IPC – Taunts, Abuses and Alleged Assaults – Prima Facie Offence Made Out – Petition Dismissed – Wife alleged repeated physical and mental harassment including beatings, sexual violence, and dowry-related abuse – Court held that these allegations, if proven, could attract Section 498-A IPC and require adjudication in trial – Held: Petition to quash criminal proceedings dismissed [Paras 25-32].

Jurisdiction under Section 482 CrPC – Limited Scope – Interference Not Warranted – Allegations Raise Triable Issues – Court reiterated that power to quash proceedings should be exercised sparingly and only in rare cases – In view of detailed allegations and pending trial, interference under Section 482 CrPC and Article 227 of Constitution was not justified – Held: Petition premature and devoid of merit [Paras 31, 33-36].

Exoneration by Army Inquiry – Not Binding on Criminal Proceedings – Different Standards Apply – Petitioner relied on exoneration by Army authorities on similar allegations – Held: Such inquiry not judicial in nature, not conducted under evidentiary standards required in criminal law – Does not preclude prosecution under IPC and DV Act [Paras 38-41].

Domestic Violence Allegations – Triable Case Exists – Complaint Not an Abuse of Process – Petitioners challenged DV proceedings citing contradictions and lack of medico-legal evidence – Court held that sustained taunts, threats, and control over household resources may constitute domestic violence – Held: Sufficient basis exists to proceed with complaint under DV Act [Paras 27-30].

Decision – Petitions Dismissed – No Grounds to Quash FIR or DV Complaint – Court emphasized need to test veracity of allegations at trial and not under pre-trial jurisdiction of High Court – Held: No abuse of process established, both petitions dismissed [Paras 43].