Criminal Procedure – Right to Hearing in Revision – Suspects in criminal complaints are entitled to be heard in revision petitions filed by complainants challenging the dismissal of complaints by Magistrates under Section 203 CrPC – High Court's order rejecting the application of suspects for impleadment in revision proceedings overturned – Emphasized the requirement of Section 401(2) CrPC for ensuring fairness and adherence to natural justice principles [Paras 1-59].

Revisionary Jurisdiction – Applicability – Section 401(2) of CrPC mandates that no order prejudicial to the accused or other persons can be passed without providing an opportunity to be heard – Applies to revisions challenging pre-process dismissals under Section 203 CrPC – Differentiates between pre-cognizance dismissal and post-cognizance processes, asserting suspects' right to defend favourable orders [Paras 40-58].

Decision:

Appeal allowed – Impugned High Court order set aside – Suspects granted the right to be heard in the criminal revision petition filed by the complainant – High Court directed to dispose of the revision petition in accordance with law after hearing the appellants [Paras 59].

Criminal Procedure - Remand of Accused - Writ of Habeas Corpus - Appellant challenged the legality of detention following remand orders passed by a competent Magistrate under Sections 167 and 309 CrPC - Supreme Court held that a writ of habeas corpus is not to be entertained if detention results from a judicial order that is not without jurisdiction or wholly illegal - Detention affirmed [Paras 1-34].

Remand and Custody - Judicial Function - Emphasized that remand orders are judicial acts requiring application of mind to justify detention - Magistrate must ensure compliance with legal standards, including examination of case diary and materials presented by the investigating agency - Supreme Court underscored non-mechanical issuance of remand orders [Paras 24-26, 32].

Scope of Investigation - Defined under Section 2(h) CrPC - Investigation includes proceedings for evidence collection by police officers, not control by Magistrate - Supreme Court clarified the distinction between judicial remand and executive investigation activities [Paras 26-31].

Habeas Corpus - Criteria for Grant - Writ not granted when detention is based on valid judicial order - Court reviews legality of detention at the time of habeas corpus application, considering jurisdiction and legality of remand orders [Paras 17-23, 32-33].

Decision: Appeal dismissed - Detention by judicial order valid - Supreme Court requested High Court to expedite pending application related to FIR quashing - Appellant granted liberty to seek bail from appropriate court [Para 34].

Constitutional Law – Jurisdiction of High Court – Interim Orders – High Court issued interim orders restraining MLAs from functioning as members of the Assembly during pendency of disqualification petitions before the Speaker – Supreme Court held High Court had no jurisdiction to pass such interim orders – Speaker’s decision under Paragraph 6 of Tenth Schedule must precede judicial review [Paras 41-49].

Disqualification of Members – Powers of Speaker – Speaker’s jurisdiction to decide disqualification petitions under Paragraph 6 of Tenth Schedule to Constitution – Interim orders affecting functioning of MLAs cannot be passed by High Court – High Court can intervene only post-Speaker’s decision [Paras 43-45].

Order 41 Rule 33 CPC – Scope – Not applicable in constitutional matters relating to Tenth Schedule – High Court’s powers under Order 41 Rule 33 CPC limited to statutory appellate jurisdiction – Cannot override constitutional provisions and Speaker’s exclusive jurisdiction under Tenth Schedule [Paras 46-47].

Decision: Appeal by Speaker dismissed – Interim order by High Court restraining MLAs from functioning set aside – Speaker directed to decide disqualification petitions within three months – MLAs entitled to function as members of Assembly pending Speaker’s decision [Paras 47-50].

Arbitration – Reference to Arbitration – Section 45 of Arbitration and Conciliation Act, 1996 – Court’s role in determining validity and applicability of arbitration agreement – Right to reference is legal, not absolute – Court must refer parties to arbitration unless agreement is null, void, or incapable of being performed – Greater obligation to refer matters to arbitration compared to earlier law under Arbitration Act, 1940 [Paras 53-64].

Non-Signatories – Composite Transactions – Group of Companies Doctrine – Non-signatory parties may be bound by arbitration agreements if transactions are intrinsically linked and performance of one agreement depends on others – Courts can refer non-signatories to arbitration in cases involving composite transactions – Intent of parties to refer disputes to arbitration is crucial [Paras 65-71].

Jurisdiction – Court’s Discretion – Section 45 empowers Court to refer parties to arbitration if conditions are met – Court must examine arbitration agreement’s validity, scope, and parties’ intention – Non-signatories can be included if claiming through or under signatories [Paras 54-72].

Decision: Appeals allowed in part – High Court's order referring entire suit to arbitration upheld for signatory parties – Non-signatories referred to arbitration based on their intrinsic link to agreements and transactions – High Court directed to dispose of disqualification petitions within three months [Paras 47-50].

Civil Procedure – Amendment of Pleadings – Order 6 Rule 17 CPC – Permissibility of amendment of pleadings to determine real question in controversy – Amendment allowed if made prior to commencement of trial – If made after commencement, due diligence must be shown – Amendment sought to challenge sale deeds and include relief of cancellation – Amendment does not change nature of suit – Application allowed [Paras 5-16].

Factual Basis – Unamended Plaint – Entire factual matrix for relief sought under proposed amendment already set out in unamended plaint – Challenge to voidness of sale deeds implicit in factual matrix – Relief of cancellation does not change nature of suit [Paras 9-10].

Legal Principles – Amendment to Protect Interest – Amendment necessary for determining real questions in controversy – Should not change basic nature of suit – Larger interest of justice served by allowing amendments – References to relevant case law [Paras 7-8, 14-15].

Decision: Appeal allowed – Orders of trial court and High Court rejecting application for amendment set aside – Application for amendment allowed – Trial court directed to dispose of the suit within six months – No order as to costs [Para 16].

Criminal Procedure – Bail – Cancellation – Appeal against bail granted by Gujarat High Court to Amitbhai Anil Chandra Shah – Court reluctant to cancel bail but imposes conditions – Amitbhai Shah directed to give an undertaking and report to CBI office every alternate Saturday – Bail in Sohrabuddin case not to influence bail decisions in Prajapati case [Paras 29-32].

Criminal Procedure – Transfer of Case – Section 406 CrPC – Transfer of Sohrabuddin case outside Gujarat – Ordered to ensure fair trial – Case transferred to CBI court in Mumbai – Court directs completion of investigation within six weeks and permits CBI to seek transfer of Prajapati case to the same court [Paras 33-43].

Investigation – CBI – Investigation into larger conspiracy in Sohrabuddin and Prajapati cases – Court expresses concern over attempts to obstruct investigation – Ensures that trial and investigation are not compromised [Paras 10-24].

Decision: Appeal dismissed – Transfer petition allowed – Sohrabuddin case transferred to CBI court in Mumbai – Amitbhai Shah to comply with conditions of bail – CBI directed to complete investigation within six weeks [Paras 30-43].

Constitutional Law – Legislative Competence – Pondicherry Protection of Interests of Depositors in Financial Establishments Act, 2004 – Challenge to validity on grounds of legislative competence – Act passed under Entries 1, 30, 32 of List II and Entries 1, 8, 13, 21 of List III – Pondicherry Act held valid, protecting depositors’ interests [Paras 1-48].

Legislation – Public Interest – Protection of Depositors – Objectives of the Act to safeguard interests of depositors from fraudulent financial establishments – Act covers both incorporated and unincorporated entities accepting deposits – Upheld on grounds of public interest and legislative competence [Paras 36-47].

Interpretation of Statutes – Definition of 'Person' – Inclusive of both natural and juristic persons – Includes companies under Companies Act, 1956 – Act validly applies to the appellant, a company accepting deposits [Paras 14-17].

Judicial Review – Repugnancy and Presidential Assent – Article 254 of Constitution – State law prevails if it receives Presidential assent – Pondicherry Act has Presidential assent, hence prevails despite central laws on similar subjects [Paras 43-45].

Decision: Appeals dismissed – Pondicherry Protection of Interests of Depositors in Financial Establishments Act, 2004 upheld – Appellant to bear costs of Rs. 100,000 [Paras 48].

Criminal Procedure – Committal of Cases – Sections 207-209 CrPC – Magistrate's duty to commit cases triable by Sessions Court – Magistrate has no jurisdiction to discharge accused in such cases – Order of discharge by Magistrate held nullity and without jurisdiction [Paras 10-14].

Recording of Statements – Section 164 CrPC – Statements to be recorded only when produced by police – Independent appearance before Magistrate invalid without proper identification – Statements recorded in haste without identification lack legal sanctity – Previous judgments considered and followed [Paras 5-8, 16-17].

Evidence – Handwriting Comparison – Sections 45, 73 Indian Evidence Act – Court can compare handwriting/signatures but must do so with caution – Discrepancies in signatures lead to suspicion – Importance of expert opinion in handwriting comparison emphasized [Paras 19-23].

Appreciation of Evidence – At Stage of Framing Charge – Sections 227 CrPC – Court to consider only prosecution documents – Defence documents cannot be considered – Court must not conduct a mini trial at this stage – Application of principles from relevant case law [Paras 11-12].

Decision: Appeal dismissed – Order of High Court upheld – Sessions Court to proceed expeditiously – Observations made are not to affect parties adversely in subsequent proceedings [Paras 25].

Constitutional Law – Presidential Reference – Article 143(1) – Scope and Breadth – Supreme Court has discretionary power to decline to answer a reference for good reasons – Satisfaction of the President regarding the nature and importance of the questions is essential – No mandatory format required for the reference [Paras 23-33].

Disposal of Natural Resources – Methods – Auction as Permissible Method – Questions posed about the necessity and exclusivity of auctions for all natural resources across all sectors and circumstances – Examination of broad legal principles and their implications [Paras 28-29].

Impact of Judicial Decisions – Review and Reconsideration – Jurisdiction and Discretion of the Court – Reference under Article 143(1) does not entail appellate or review jurisdiction – Analysis of precedents to clarify or restate principles of law [Paras 30-32].

Maintainability – Filing and Withdrawal of Review Petition – No impact on the maintainability of Presidential Reference – Distinction between judicial review and advisory opinion [Paras 33-34].

Decision: Reference held maintainable – Supreme Court to proceed with answering the questions posed in the Presidential Reference – Examination of legal principles related to the disposal of natural resources and the implications of the judgment in the 2G case [Paras 35-36].