Supreme Court Overturns Gujarat High Court Stay on Criminal Investigation
The Supreme Court of India, on August 2, 2022, delivered a crucial judgment in the case of Siddharth Mukesh Bhandari vs. State of Gujarat. The case pertained to an interim stay granted by the Gujarat High Court, which effectively halted criminal proceedings in multiple Special Criminal Applications filed by the accused under Article 226 of the Constitution and Section 482 of the Code of Criminal Procedure (Cr.P.C.).
The Supreme Court ruled that the High Court had erred in staying the investigation and quashed the interim relief granted to the accused. The ruling underscores the Supreme Court’s stance that investigations should not be stalled except in the rarest of rare cases.
Background of the Case
The case revolved around three First Information Reports (FIRs) filed in 2019 in Gujarat:
- Special Criminal Application No. 9112 of 2019 arose from FIR M. Case No. 3 of 2019.
- Special Criminal Application No. 9111 of 2019 and Special Criminal Application No. 9475 of 2019 were based on FIR M. Case No. 2 of 2019.
These FIRs were initiated by the complainant, alleging financial fraud and misappropriation of funds. However, before the investigation could progress, the accused approached the Gujarat High Court seeking quashing of the proceedings.
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The High Court, in an ex-parte ad-interim order dated October 10, 2019, granted relief to the accused and directed that no coercive steps be taken against them. This decision effectively stalled the investigation.
Supreme Court’s Earlier Intervention
The complainant challenged the Gujarat High Court’s interim stay before the Supreme Court in 2019. The Supreme Court, in its orders dated December 9, 2019, and December 17, 2019, stayed the High Court’s relief and directed that investigations should proceed. The Supreme Court also clarified that:
- The accused had the liberty to seek anticipatory bail, which should be considered by the courts expeditiously.
- The investigating agency must continue its probe without undue delay.
High Court’s Repeated Stay in 2022
Despite the Supreme Court’s previous orders, the Gujarat High Court, on February 14, 2022, again stayed further criminal proceedings in the pending Special Criminal Applications.
This led the complainant to file fresh appeals before the Supreme Court, arguing that the High Court’s order was in direct contradiction to previous Supreme Court rulings.
Arguments Before the Supreme Court
Petitioner’s (Complainant) Arguments
The counsel for the complainant argued:
- The Gujarat High Court ignored the Supreme Court’s previous ruling by once again staying the criminal investigation.
- The accused had already been granted liberty to apply for anticipatory bail and did not need further protective relief.
- The investigation had been stalled for more than two years, violating the principles of fair criminal proceedings.
- The High Court misapplied the principles established in M/s. Neeharika Infrastructure Pvt. Ltd. vs. State of Maharashtra, which clearly state that courts should not interfere with investigations unless absolutely necessary.
Respondent’s (Accused) Arguments
The accused, represented by senior advocates, contended:
- The allegations in the FIRs were civil in nature and did not warrant a criminal investigation.
- The High Court had granted relief in accordance with its discretionary powers under Article 226 and Section 482 Cr.P.C.
- The accused were facing undue harassment, and the High Court had jurisdiction to stay proceedings.
Supreme Court’s Observations
1. High Court Ignored Previous Supreme Court Orders
The Supreme Court noted that its December 2019 orders had already ruled that:
“The investigating agency has the right to conduct investigations, and the accused may seek anticipatory bail if needed.”
Despite this, the High Court once again stayed the investigation in 2022, which the Supreme Court found to be an error.
2. Misinterpretation of M/s. Neeharika Infrastructure Case
The Court stated that the Gujarat High Court had misapplied its ruling in M/s. Neeharika Infrastructure Pvt. Ltd. vs. State of Maharashtra, which held:
“Interim relief in quashing petitions should be granted only in the rarest of rare cases.”
The Supreme Court observed that the High Court had not followed this principle and had instead wrongly exercised its jurisdiction.
3. Right of the Investigating Agency
The Court reaffirmed that investigations should not be stalled:
“The investigating officer has the right to proceed with the probe, and only in exceptional cases should courts intervene.”
Final Judgment
The Supreme Court ruled:
- The Gujarat High Court’s interim stay on the investigation was quashed.
- The investigation must resume immediately and be completed within three months.
- The accused may still apply for anticipatory bail, which should be considered in accordance with the law.
- The Gujarat High Court must dispose of the pending Special Criminal Applications on merit, without undue delay.
Impact of the Judgment
This ruling has significant implications:
- Strengthens the authority of investigating agencies: Reinforces that criminal investigations should not be unnecessarily delayed.
- Restricts judicial interference: Clarifies that courts should grant interim relief only in the rarest cases.
- Protects complainant rights: Ensures that victims of financial fraud and other offenses can seek justice without undue procedural delays.
Conclusion
The Supreme Court’s decision in Siddharth Mukesh Bhandari vs. State of Gujarat is a landmark ruling that reaffirms the principles governing criminal investigations. It establishes that investigations should not be stalled except in the most extraordinary circumstances and reinforces the rights of victims and complainants to have their cases investigated fairly. This judgment serves as a crucial precedent for future cases involving the misuse of interim relief in criminal matters.
Petitioner Name: Siddharth Mukesh Bhandari.Respondent Name: State of Gujarat & Others.Judgment By: Justice M.R. Shah, Justice B.V. Nagarathna.Place Of Incident: Gujarat.Judgment Date: 01-08-2022.
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