Criminal Law – Sanction for Prosecution – Application of Mind – Appellant challenged the validity of the sanction under Section 19 of the Prevention of Corruption Act, alleging that it was granted without application of mind and by an incompetent authority. The court held that the sanction order lacked necessary documentary evidence to show that the powers were properly delegated to the sanctioning authority. The absence of relevant materials and the authority’s failure to demonstrate a conscious application of mind rendered the sanction invalid [Paras 9-16].

Demand and Acceptance – Proof Requirements – The prosecution’s case was based on allegations of demand and acceptance of a bribe for reducing a fine imposed on the contractor’s firm. The court found inconsistencies in the prosecution’s evidence regarding prior demands and the demand on the day of the trap. The complainant’s testimony lacked independent corroboration, and the evidence of the shadow witness failed to conclusively prove a demand, particularly when the alleged demand was made through gestures (raising eyebrows) [Paras 31-39].

Tape Recorder Evidence – Contradictions in Testimonies – The court noted contradictions in the testimonies regarding the use of a tape recorder during the trap, which further weakened the prosecution's case. The failure to provide consistent evidence on key aspects of the investigation raised doubts about the veracity of the incident [Paras 30-40].

Presumption of Guilt – Section 20 of the Prevention of Corruption Act – The court emphasized that a presumption of guilt under Section 20 of the Act can only arise once foundational facts are established. Given the inconsistencies in the prosecution’s case, the court found no basis for such a presumption in this instance [Paras 41-42].

Decision: Appeal allowed – The conviction and sentence of the appellant were quashed and set aside. The accused was acquitted of all charges, including those under Section 7 and Section 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act​.

Presumption under NI Act – Rebuttal – Appeal allowed – Appeal against acquittal under Section 138 NI Act – Respondent issued cheque towards loan repayment, which was dishonored – Trial Court acquitted respondent, failing to properly apply presumption under Sections 118(a) and 139 NI Act – High Court held that once execution of cheque is admitted, presumption of liability arises – Burden shifts to accused to rebut presumption, which respondent failed to do – Trial Court’s approach flawed in placing onus on complainant instead of accused – Appeal allowed, acquittal set aside [Paras 11-20].

Section 313 CrPC – Statement not sufficient for rebuttal – Respondent’s statement under Section 313 CrPC admitting signature on cheque but denying liability – Held insufficient to rebut statutory presumption under Section 139 NI Act without supporting evidence – High Court emphasized that mere denials in Section 313 statement do not suffice for rebutting presumption – Proper legal analysis of evidential burden is crucial in NI Act cases [Paras 14-17].

Decision: Appeal allowed – Impugned acquittal set aside – Case remanded to Trial Court for further proceedings in light of the proper application of presumptions under the NI Act.

Prevention of Corruption – Demand and Acceptance of Bribe – The High Court set aside the conviction of the appellant, finding that the prosecution failed to establish the demand and acceptance of bribe beyond a reasonable doubt. The evidence showed that no work of the complainant was pending with the appellant at the time of the trap, and the money allegedly received was claimed to be processing fees. The prosecution could not prove that the recorded conversation was of the appellant, nor that the processing fee was not paid earlier or deducted from the complainant's account [Paras 6-14].
Evidence – Voice Recording Admissibility – The prosecution relied on a recorded conversation to establish the demand for a bribe. The High Court found that the prosecution failed to prove that the voice in the recording belonged to the appellant. The Court cited established legal principles that require the identification and authentication of voices in such evidence, which were not met in this case [Paras 10-11].
Reasonable Doubt – Spontaneous Explanation – The appellant’s defense was that the Rs. 3000 found with him was a processing fee for the loan, not a bribe. The Court observed that the prosecution did not sufficiently counter this explanation, further casting doubt on the case against the appellant [Paras 12-14].
Decision: Appeal allowed. The conviction and sentence imposed by the trial court were set aside. The appellant was directed to be released from bail obligations, with a condition to appear if the judgment is challenged before a higher court.
 

Criminal Procedure – Dismissal of Complaint – The Trial Court dismissed the complaint under Section 256 Cr.P.C. for non-appearance of the complainant on the date fixed for hearing. The complainant argued that his absence was due to an error in noting the date by his counsel. The High Court, upon review, found that the complainant’s presence was not essential on the said date as the court was only required to put the notice of accusation to the accused, which could proceed in the complainant’s absence [Paras 8-15].

Section 256 Cr.P.C. – Application and Misapplication – The High Court emphasized that under Section 256 Cr.P.C., a complaint should not be dismissed for default if the presence of the complainant is not necessary. The Trial Court’s action of dismissing the complaint was found to be erroneous as the complainant’s presence was not required for the specific proceedings scheduled on that date [Paras 12-16].

Decision:

The appeal was allowed. The High Court set aside the order of the Trial Court dismissing the complaint and restored the complaint to its original position, directing the Trial Court to proceed further in accordance with the law [Paras 17-20].

Review – Maintainability – New Counsel – Review application filed by a new counsel who was neither the filing nor the arguing counsel in the original case – High Court rejected the review application, noting that the original order was decided on merits and that changing counsel to file a review petition without addressing the maintainability constitutes an abuse of process – The court imposed exemplary costs of Rs. 20,000 to discourage such practices [Paras 6-9].

Mesne Profits – Deposit During Pendency of Appeal – The court reaffirmed the earlier order requiring mesne profits to be deposited in a Fixed Deposit/Recurring Deposit, with payments to be made by the 10^th of each month – Cited relevant Supreme Court judgments on the treatment of mesne profits during appeals [Paras 3-7].

Decision: Review Application dismissed with costs – Original order affirmed – The court emphasized the impropriety of changing counsel solely to re-argue matters already decided on merits [Paras 9].

Criminal Law – Quashing of FIR – Appellant petitioners sought quashing of FIR under Sections 420, 406, 467, 468, 471, and 120-B of IPC – FIR was registered post the enactment of Bhartiya Nyaya Sanhita (BNS) 2023 – Dispute between family members regarding the alleged forgery of a will and manipulation of property records – Petitioners argued that with the repeal of the Indian Penal Code (IPC) from 01.07.2024, FIRs could not be registered under IPC – Court held that for offences committed before 01.07.2024, FIRs must still be registered under the IPC despite its repeal, per Section 358(2) of BNS [Paras 5, 20, 22, 25].
Property Dispute – Nature of Dispute – FIR alleged that the petitioners forged a will and manipulated revenue records to transfer property after the death of the complainant's mother – Court observed that the dispute pertained to property distribution, a civil matter, not criminal – Ingredients of offences under Sections 420, 406, 467, 468, 471 IPC were not made out in the FIR – No dishonest inducement, entrustment, or forgery was evident from the complaint [Paras 28.1, 29].
Procedural Law – Applicability of BNS and BNSS – Court discussed the transition from IPC to BNS and Cr.P.C. to BNSS – Held that while offences committed before 01.07.2024 would be registered under IPC, the procedure for FIRs post-01.07.2024 would follow the Bhartiya Nagrik Suraksha Sanhita (BNSS) 2023 – Investigation and trial would continue as per BNSS [Paras 23, 24, 31].
Decision – Petition allowed – FIR and consequential proceedings quashed – Held that pursuing the FIR would cause unnecessary harassment and was an abuse of process as the core issue was a civil property dispute rather than a criminal matter [Paras 32, 33, 35].
 

Railway Accident Claim - Compensation Disbursement – Appeal – The claimants challenged the award passed by the Railway Claims Tribunal (RCT), which ordered 90% of the compensation to be invested in a fixed deposit for three years – The High Court noted that the RCT Chandigarh Bench had been issuing similar directions in numerous cases – The Tribunal's actions were intended to safeguard the interests of claimants, particularly minors, illiterates, widows, and others vulnerable to exploitation, as per the "parens patriae" doctrine – However, it was emphasized that the guidelines for investment of compensation amounts should not be applied rigidly and should consider each claimant's specific circumstances – Held: The appeals were allowed, except for those involving minors, where the compensation was ordered to be retained in fixed deposits until they attain the age of majority or a need arises [Paras 3-13].

Investment Guidelines – The Supreme Court’s guidelines in Union Carbide Corporation v. Union of India (1991) and Muljibhai v. United India Insurance Co. (1982) govern compensation disbursal, emphasizing that fixed deposits are appropriate for minors, illiterate claimants, and widows – The guidelines were extended in Susamma Thomas v. Kerala State Road Transport Corp. (1994) and reaffirmed in A.V. Padma v. R. Venugopal (2012) – The High Court reiterated that while fixed deposits protect vulnerable claimants, tribunals should apply the guidelines pragmatically and not mechanically [Paras 3-10].

Decision: The appeals were partly allowed – Compensation for minor claimants to remain in fixed deposits, while compensation for adult claimants, with no apprehension of exploitation, was directed to be disbursed without mandatory investment in fixed deposits [Paras 12-13].

Juvenile Justice Act – Bail to Juvenile – Application of Section 12 – The petitioner, a juvenile in conflict with law, was denied bail by the Juvenile Justice Board and the Additional Sessions Judge despite provisions under Section 12 of the Juvenile Justice Act favoring the release of juveniles. Both lower courts relied solely on the gravity of the offense to deny bail without assigning proper reasoning as required by law. The court held that the denial of bail based solely on the nature of the offense, without objective reasoning or evidence to show the juvenile’s release would be harmful, violated Section 12 [Paras 1-20].

Proviso to Section 12 – Requirement for Reasoned Findings – The court emphasized that under Section 12, bail to a juvenile can only be denied if there are reasonable grounds to believe that the release would expose the child to physical, moral, or psychological danger, or defeat the ends of justice. The lower courts failed to provide sufficient reasoning or evidence to justify denying bail, and mere suspicion or the seriousness of the offense cannot be grounds for such denial [Paras 21-35].

Revised Approach – Principles of Juvenile Justice – The court referred to the fundamental principles of the Juvenile Justice Act, which prioritize the child’s best interests and presumption of innocence. The court stressed that a human approach must be adopted when considering bail for juveniles, with the goal of reintegrating them into society and avoiding stigmatization [Paras 36-50].

Decision: Petition allowed. The orders denying bail were set aside, and the juvenile was granted bail with conditions to ensure his supervision and reintegration into society.

Employees Compensation Act – Ex Parte Award – Set Aside – The respondent, Abdul Rehman Naik, filed a claim petition under Section 3 of the Workmen Compensation Act, 1923, alleging injuries sustained during his employment with the appellant – An ex parte award was passed in favor of the respondent without proper service of notice to the appellant or any authorized representation on his behalf – The appellant filed for recall of the award, contending he was unaware of the claim petition and had not authorized any advocate to appear for him – Held: The Commissioner Employees Compensation failed to ensure proper service of notice to the appellant, and the ex parte proceedings were conducted without due diligence – The award was set aside on account of serious procedural infirmity, and the matter was remanded for de novo adjudication – [Paras 14-19, 22].

Natural Justice – Right to Fair Hearing – Denied – The principles of natural justice were violated as the appellant was condemned unheard, and the claim petition was decided without giving him a fair opportunity to present his case – The Commissioner failed to record how the appellant was served and who represented him during the proceedings – Held: The violation of natural justice principles necessitated the setting aside of the award to protect the appellant’s right to a fair hearing – [Paras 17-20].

Decision: Appeal allowed – The award dated 09.06.2012 passed by the Commissioner Employees Compensation (Assistant Labour Commissioner) Doda Camp Ramban is set aside – The matter is remanded for de novo adjudication with directions to ensure proper service of summons to the appellant and the respondent – The amount withdrawn by the respondent pursuant to the court’s order is to be deposited back – [Para 28].