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CENTRAL BUREAU OF INVESTIGATION versus K.M. SHARAN

Citation: [2008] 3 S.C.R. 101 · Decided: 21-02-2008 · Supreme Court of India · Bench: ASHOK BHAN · Disposal: Disposed off

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Judgment (excerpt)

[2008) 3 S.C.R. 101 
~-
... 
CENTRAL BUREAU OF INVESTIGATION 
A 
v. 
K.M. SHARAN 
(Criminal Appeal No. 351 of 2008) 
FEBRUARY 21,2008 
B 
.. 
.J 
(ASHOK BHAN AND DALVEER BHANDARI, JJ.) 
Code of Criminal Procedure, 1973 - s.482 - FIR /charge-
sheet for offences under /PC - Quashed by High Court - On 
appeal, held: Ingredients of the offences charged under are c 
made out justifying registration of the case - Hence quashing 
of FIR/charge-sheet not correct- Penal Code, 1860- ss.1208 
and 193. 
s. 482 - Inherent power under- Scope and ambit of -
.,r 
Held: Inherent power under the provision, though wide, have D 
to be exercised sparingly and with great caution - It should 
not be exercised to stifle legitimate prosecution- However, no 
hard and fast rule can be laid down specifying the cases where 
such power can be used. 
A criminal case was registered against the E 
respondent who was chairman of Delhi Development 
Authority. It was alleged that he had shown undue favour 
โ€ข 
to a company in respect of a project on having obtained 
< 
or having agreed to obtain illegal gratification. During 
search of the house of his son, huge cash amount was 
F 
recovered. His son claimed the amount to be of the 
respondent. Respondent tried to explain the receipt of the 
amount. Appellant found inconsistencies in the stand 
taken by the respondent and that of his son. After 
investigation, respondent was charge-sheeted u/s.120B G 
r/w s.193 IPC. 
.... 
Respondent filed petition u/s.482 Cr.P.C., seeking 
quashing of the FIR/Charge-sheet. High Court quashed. 
the same. Hence the present appeal. 
101 
H 
102 
SUPREME COURT REPORTS 
(2008] 3 S.C.R. 
.., .. 
A 
Disposing of the appeal, the Court 
HELD: 1.1. Inherent powers under Section 482 
Cr.P.C. though wide, have to be exercised sparingly, 
carefully and with great caution and only when such 
B exercise is justified by the tests specifically laid down in 
this section itself. Authority of the court exists for the 
.. 
advancement of justice. If any abuse of the process 
'-
leading to injustice is brought to the notice of the court, 
then the court would be justified in preventing injustice 
by invoking inherent powers in absence of specific 
c provisions in the Statute. [Para 18) [119-D] 
1.2 The powers possessed by the High Court under 
Section 482 Cr.P.C. are very wide and the very plentitude 
of the power requires great caution in its exercise. The 
D court must be careful to see that its decision in exercise 
of this power is based on sound principles. The inherent 
power should not be exercised to stifle a legitimate 
prosecution. The High Court should normally refrain from 
giving a prima facie decision in a case where all the facts 
E are incomplete and hazy; more so when the evidence has 
not been collected and produced before the court and 
the issues involved, whether factual or legal, are of such 
magnitude that they cannot be seen in their true 
perspective without sufficient material. Of course, no hard 
โ€ข 
and fast rule can be laid down in regard to cases in which 
~ 
F the High Court ought to exercise its extraordinary 
jurisdiction of quashing the proceedings at any stage. 
[Para 21) [120-D-G] 
Janata Dal v. H. S. Choudhary and Ors. (1992) 4 SCC 
G 305; Roy V.D. v. State of Kera/a (2000) 8 SCC 590; Zandu 
Pharmaceutical Works Ltd. and Ors. v. Mohd. Sharaful Haque 
and Anr. (2005) 1 SCC 122; Central Bureau of Investigation 
v. Ravi Shankar Srivastava, /AS and Anr. (2006) 7 SCC 188 -
relied on. 
H 
lnder Mohan Goswami and Anr. v. State of Uttarancha/ 
CENTRAL BUREAU OF INVESTIGATION v. 
103 
-jยท 
K.M. SHARAN 
.. 
and Ors. AIR 2008 SC 251 ; R.P. Kapur v. State of Punjab AIR A 
.. 
1960 SC 866; State of Bihar and Anr. v. J.A.C. Saldanha and 
' 
Ors. (1980) 1 SCC 554; State of West Bengal ~nd Ors. v. 
... 
Swapan Kumar Gu ha and Ors. 1982 1 SCC 561 and State of 
Haryana & Ors. v. Bhajan Lal and Ors. (1992) Supp.1 SCC 
335 and Indian Oil Corporation v. NEPC India Ltd. and Ors. 
B 
.. 
(2006) 6 sec 736 .... referred to . 
.../ 
Connelly v. Director of Public Prosecutions 1964 AC 
1254; Director of Prosecutions v. Humphrys 1977 AC 1-
referred to. 
c 
2.1 The High Court in its jurisdiction under section 
482 Cr.P.C. was not called upon to embark upon the 
enquiry whether the allegations in the FIR and the charge-
sheet were reliable or not and thereupon to render definite 
finding about truthfulness or veracity of the allegations. D 
7' 
These are matters which can be examined

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