Supreme Court Criminal Digest February 2023

Code of Criminal Procedure, 1973 - Prevention of Money-laundering Act, 2002; Section 46(1), 65, 71 - The provisions of the Cr.P.C. are applicable to all proceedings under the Act including proceedings before the Special Court, except to the extent they are specifically excluded. Hence, Section 71 of the PMLA providing an overriding effect, has to be construed in tune with Section 46(1) and Section 65. (Para 28-29) Rana Ayyub v. Directorate of Enforcement, 2023 LiveLaw (SC) 86

Code of Criminal Procedure, 1973; Chapter XXV; Sections 328 to 339 - Though procedural in nature, Chapter XXV becomes substantive when it deals with an accused person of unsound mind - There is not even a need for an application under Section 329 of Cr.P.C. in finding out as to whether an accused would be sound enough to stand a trial, rather it is the mandatory duty of the Court -The whole idea under the provisions discussed is to facilitate a person of unsound mind to stand trial, not only because of his reasoning capacity, but also to treat him as the one who is having a disability. The role of the Court is to find the remedial measures and do complete justice. (Para 15-16) Prakash Nayi @ Sen v. State of Goa, 2023 LiveLaw (SC) 71

Code of Criminal Procedure, 1973; Section 164 - Non-examination of the statement under section 164 Cr.P.C. also has no relevance or bearing to the findings and conclusions arrived at by the courts below. It was for the Investigating Officer to have got the statement under section 164 Cr.P.C. recorded. If he did not think it necessary in his wisdom, it cannot have any bearing on the testimony of PW-1 and the other material evidence led during trial. (Para 22) Ajai @ Ajju v. State of Uttar Pradesh, 2023 LiveLaw (SC) 110

Code of Criminal Procedure, 1973; Section 173 (8) - Victim has a fundamental right of fair investigation and fair trial. Therefore, mere filing of the chargesheet and framing of the charges cannot be an impediment in ordering further investigation / re-investigation / de novo investigation, if the facts so warrant. (Para 12.3) Anant Thanur Karmuse v. State of Maharashtra, 2023 LiveLaw (SC) 136

Code of Criminal Procedure, 1973; Section 319 - Supreme Court lays down procedural guidelines to prevent abuse. Juhru v. Karim, 2023 LiveLaw (SC) 128

Code of Criminal Procedure, 1973; Section 320 - Negotiable Instruments Act, 1881; Section 147 - Compounding of offences - The Appellants cannot be convicted on the basis of the orders passed by the courts below, as the settlement is nothing but a compounding of the offence-This is a very clear case of the parties entering into an agreement and compounding the offence to save themselves from the process of litigation. When such a step has been taken by the parties, and the law very clearly allows them to do the same, the High Court then cannot override such compounding and impose its will. (Para 8, 9, 11) B.V. Seshaiah v. State of Telangana, 2023 LiveLaw (SC) 75

Code of Criminal Procedure, 1973; Section 378, 397-401 - In an appeal/revision, the High court could have set aside the order of acquittal only if the findings as recorded by the trial Court were perverse or impossible. (Para 7) P. Sivakumar v. State, 2023 LiveLaw (SC) 116

Code of Criminal Procedure, 1973; Section 406 - Negotiable Instruments Act, 1881; Section 138, 142(1) - Notwithstanding the non obstante clause in Section 142(1) of the NI Act, the power of this Court to transfer criminal cases under Section 406 Cr.P.C. remains intact in relation to offences under Section 138 of the NI Act - the contention that the non obstante clause in Section 142(1) of the Act of 1881 would override Section 406 Cr.P.C. and that it would not be permissible for this Court to transfer the said complaint cases, in exercise of power thereunder, cannot be countenanced. (Para 13) Yogesh Upadhyay v. Atlanta Ltd., 2023 LiveLaw (SC) 125

Code of Criminal Procedure, 1973; Section 406 - Transfer of case from one state to another must be ordered sparingly - followed Umesh Kumar Sharma vs. State of Uttarakhand, 2020 (11) SCALE 562 - It is also important to bear in mind that transfer of a criminal case from one State to another implicitly reflect upon the credibility of not only the State judiciary but also of the prosecution agency. Neelam Pandey v. Rahul Shukla, 2023 LiveLaw (SC) 141

Code of Criminal Procedure, 1973; Section 432 - Remission - It is not open to the State to adopt an arbitrary yardstick for picking up cases for premature release. It must strictly abide by the terms of its policies bearing in mind the fundamental principle of law that each case for premature release has to be decided on the basis of the legal position as it stands on the date of the conviction subject to a more beneficial regime being provided in terms of a subsequent policy determination. The provisions of the law must be applied equally to all persons. Moreover, those provisions have to be applied efficiently and transparently so as to obviate the grievance that the policy is being applied unevenly to similarly circumstanced persons. An arbitrary method adopted by the State is liable to grave abuse and is liable to lead to a situation where persons lacking resources, education and awareness suffer the most. Rajkumar v. State of Uttar Pradesh, 2023 LiveLaw (SC) 144

Code of Criminal Procedure, 1973; Section 437 - 439, Section 357 - Interim victim compensation cannot be imposed as a condition for anticipatory bail - Question of interim victim compensation cannot form part of the bail jurisprudence - Victim compensation is simultaneous with the final view taken in respect of the alleged offence, i.e., whether it was so committed or not and, thus, there is no question of any imposition pre-finality of the matter pre-trial - In cases of offences against body, compensation to the victim should be methodology for redemption. Similarly, to prevent unnecessary harassment, compensation has been provided where meaningless criminal proceedings had been started. Such a compensation can hardly be determined at the stage of grant of bail. Talat Sanvi vs State of Jharkhand, 2023 LiveLaw (SC) 83

Code of Criminal Procedure, 1973; Section 438 - Anticipatory bail application for money laundering offence should satisfy rigours of Section 45 PMLA - Observations made by the High Court that the provisions of Section 45 of the Act, 2002 shall not be applicable in connection with an application under Section 438 Cr.P.C. is just contrary to the decision in the case of Assistant Director Enforcement Directorate vs Dr VC Mohan and the same is on misunderstanding of the observations made in the case of Nikesh Tarachand Shah Vs. Union of India and Anr.; (2018) 11 SCC 1. (Para 5) Directorate of Enforcement v. M. Gopal Reddy, 2023 LiveLaw (SC) 138

Evidence Act 1872 - Last Seen Theory - Once the theory of “last seen together” was established by the prosecution, the accused was expected to offer some explanation as to when and under what circumstances he had parted the company of the deceased-If the accused offers no explanation or furnishes a wrong explanation, absconds, motive is established and some other corroborative evidence in the form of recovery of weapon etc. forming a chain of circumstances is established, the conviction could be based on such evidence. (Paras 6 to 9) Ram Gopal Mansharam v. State of Madhya Pradesh, 2023 LiveLaw (SC) 120

Evidence Act 1872- Section 114 - If courts find evidence in possession of a party that has not been produced it can assume that production of the same would be unfavourable to the person who withholds it as per illustration (g) of Section 114 of the Evidence Act. However, on the basis of the fact that an evidence that ought to have been adduced was not adduced, the High Court cannot remand the matter - merely because a particular evidence which ought to have been adduced but had not been adduced, the Appellate Court cannot adopt the soft course of remanding the matter. (Para 14) Sirajudheen v. Zeenath, 2023 LiveLaw (SC) 145

Evidence Act, 1872 - It is not the quantity of the witnesses but the quality of witnesses which matters. (Para 21) Ajai @ Ajju v. State of Uttar Pradesh, 2023 LiveLaw (SC) 110

Evidence Act, 1872; Section 106 - It is true that the burden to prove the guilt of the accused is always on the prosecution, however in view of Section 106 of the Evidence Act, when any fact is within the knowledge of any person, the burden of proving that fact is upon him. (Para 6) Ram Gopal Mansharam v. State of Madhya Pradesh, 2023 LiveLaw (SC) 120

Negotiable Instruments Act 1881 - Section 138, 147 - The nature of offence under section 138 of the N.I Act is primarily related to a civil wrong and is a compoundable offence. (Para 10) B.V. Seshaiah v. State of Telangana, 2023 LiveLaw (SC) 75

Negotiable Instruments Act, 1881; Section 138 - Conviction cannot be confirmed overriding the agreement between the parties to compound the offence- Terms and conditions of the settlement entered into by the parties binds them to settle the dispute amicably, or through an arbitration as has been stated in clause 8 of the Memorandum of Understanding. In such a circumstance, the Appellants cannot be convicted on the basis of the orders passed by the courts below, as the settlement is nothing but a compounding of the offence- This is a very clear case of the parties entering into an agreement and compounding the offence to save themselves from the process of litigation. When such a step has been taken by the parties, and the law very clearly allows them to do the same, the High Court then cannot override such compounding and impose its will. (Para 8, 9, 11) B.V. Seshaiah v. State of Telangana, 2023 LiveLaw (SC) 75

Negotiable Instruments Act, 1881; Section 138 - The offence under Section 138 is complete upon dishonour of the cheque but prosecution in relation to such offence is postponed, by virtue of the provisos therein, till the failure of the drawer of the cheque to make the payment within 15 days of receiving the demand notice. (Para 5) Yogesh Upadhyay v. Atlanta Ltd., 2023 LiveLaw (SC) 125

Negotiable Instruments Act, 1881; Section 138, 142(2)(a) - Section 142(2)(a) vests jurisdiction for initiating proceedings for an offence under Section 138 in the Court where the cheque is delivered for collection, i.e., through an account in the branch of the bank where the payee or holder in due course maintains an account. (Para 12) Yogesh Upadhyay v. Atlanta Ltd., 2023 LiveLaw (SC) 125

Penal Code, 1860; Section 302 - Murder Trial - Supreme Court affirms sentence and conviction of accused for murder based on solitary eyewitness testimony. Ajai @ Ajju v. State of Uttar Pradesh, 2023 LiveLaw (SC) 110

Penal Code, 1860; Section 302 - Murder Trial - When there is concurrent findings of fact by the Trial Court and the High Court, the Apex Court ought not to re-appreciate the evidence to examine the correctness of such findings of fact, unless there is manifest illegality or grave and serious miscarriage of justice on account of misreading or ignoring material evidence - Conviction and sentence of mother for killing her 5-year old child upheld. Vahitha v. State of Tamil Nadu, 2023 LiveLaw (SC) 132

Penal Code, 1860; Section 498A - When marriage has been found to be null and void, the conviction under Section 498A IPC would not be sustainable. (Para 7) P. Sivakumar v. State, 2023 LiveLaw (SC) 116

Penal Code, 1860; Section 84 - Evidence Act, 1872; Section 105, 8 - The burden of proof does lie on the accused to prove to the satisfaction of the Court that one is insane while doing the act prohibited by law. Such a burden gets discharged based on a prima facie case and reasonable materials produced on his behalf. The extent of probability is one of preponderance. This is for the reason that a person of unsound mind is not expected to prove his insanity beyond a reasonable doubt. Secondly, it is the collective responsibility of the person concerned, the Court and the prosecution to decipher the proof qua insanity by not treating it as adversarial. Though a person is presumed to be sane, once there are adequate materials available before the Court, the presumption gets discharged - The behaviour and conduct before, during and after the occurrence has to be looked into. (Para 8-9) Prakash Nayi @ Sen v. State of Goa, 2023 LiveLaw (SC) 71

Penal Code, 1860; Section 84 - The existence of an unsound mind is a sine qua non to the applicability of the provision. A mere unsound mind per se would not suffice, and it should be to the extent of not knowing the nature of the act - A mere medical insanity cannot be said to mean unsoundness of mind. There may be a case where a person suffering from medical insanity would have committed an act, however, the test is one of legal insanity to attract the mandate of Section 84 of the IPC. There must be an inability of a person in knowing the nature of the act or to understand it to be either wrong or contrary to the law. (Para 4-7) Prakash Nayi @ Sen v. State of Goa, 2023 LiveLaw (SC) 71

Prevention of Money Laundering Act (Act 15 of 2003); Sections 3 and 44 – Territorial Jurisdiction of Special PMLA Court – Place of commission of the offence of money-laundering – The involvement of a person in any one or more of certain processes or activities connected with the proceeds of crime, namely, concealment, possession, acquisition, use, projecting as untainted property, or claiming as untainted property, constitutes the offence of money-laundering – All the places where any one or more of these processes or activities take place are the places where the offence of money-laundering has been committed – Triable by the special court(s) constituted for the area(s) in which the offence of money-laundering has been committed – Held, the petition could not be entertained since the issue of territorial jurisdiction could not be decided in a writ petition, especially in the presence of a serious factual dispute about the place or places of commission of the offence – Petition dismissed. (Paras 38 to 40) Rana Ayyub v. Directorate of Enforcement, 2023 LiveLaw (SC) 86

Prevention of Money Laundering Act, 2002; Section 45 - Rigours under Section 45 are applicable to anticipatory bail applications. (Para 5) Directorate of Enforcement v. M. Gopal Reddy, 2023 LiveLaw (SC) 138

Prevention of Money-laundering Act, 2002; Section 3 - The area in which the property is derived or obtained or even held or concealed, will be the area in which the offence of money laundering is committed. (Para 39-40) Rana Ayyub v. Directorate of Enforcement, 2023 LiveLaw (SC) 86

Prevention of Money-laundering Act, 2002; Section 44 - It is the Special Court constituted under the PMLA that would have jurisdiction to try even the scheduled offence. Even if the scheduled offence is taken cognizance of by any other Court, that Court shall commit the same, on an application by the concerned authority, to the Special Court which has taken cognizance of the offence of money-laundering. (Para 36) Rana Ayyub v. Directorate of Enforcement, 2023 LiveLaw (SC) 86

Protection of Women from Domestic Violence Act, 2005 - In a complaint filed under the Protection of women from Domestic Violence Act, 2005, it is not open to the Court to impose such onerous conditions upon the appellant, who claims to be a victim of domestic violence. What the Appellate Court and the High Court have ordered are actually in the nature of penalty for the appellant not proceeding with the trial. In the first instance, it is impermissible in law. Bhawna v. Bhay Ram, 2023 LiveLaw (SC) 148

Scheduled Caste and Scheduled Tribes (Prevention of Atrocities) Act, 1989 - Supreme Court refuses to interfere with HC order quashing FIR lodged by a Dalit IIT faculty member against his colleagues alleging caste-based harassment - Court favours a conciliatory approach and urges the Chairman of Board of Governor to invite the complainant and the accused for talks - Court observes allegations and counter-allegations damage the repute of a premier institution like IIT - Court impresses upon them to ensure that they work together as a team in the best interests of the institution and their students, and do not allow any unfortunate and untoward incidents to occur which might hurt the sentiments, feelings, respect and dignity of each other - Court says the continuation of criminal proceedings will be an impediment to restoration of normalcy and bringing cordiality back between the appellant and the respondents in their professional and personal capacities. Subrahmanyam Saderla v. Chandra Shekhar Upadhyay, 2023 LiveLaw (SC) 126