Preliminary enquiry before criminal complaint: court allowed factual verification of alleged fabricated AGM minutes and false statements.

A preliminary enquiry may be directed before deciding whether to initiate proceedings for alleged fabrication of AGM minutes and false statements, where the alleged falsity depends on factual verification. The court considered the passport record showing the petitioner's absence from India during the relevant period and found that this created a factual issue requiring enquiry. For that limited purpose, inspection of the petition record, the Company Law Board record and the company's records was permitted through the Registrar (Vigilance), while the question of any formal complaint was left open pending the enquiry report.

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Issues: Whether a preliminary enquiry should be ordered under section 340 of the Code of Criminal Procedure, 1973 to examine the genuineness of the minutes of the AGM dated 30-9-2006 and the alleged falsity of the statements made before the Company Law Board.

Analysis: The application sought prosecution for alleged fabrication of minutes and false assertions regarding the petitioner's presence at the AGM. The Court noted that the petitioner's passport showed departure from India on 16-9-2006 and return on 3-10-2006, which created a factual issue requiring enquiry. Before taking any final decision on making a complaint under section 340 of the Code of Criminal Procedure, 1973, the Court considered it appropriate to verify whether the AGM minutes were genuine and whether the alleged statements were made on a false foundation. For that limited purpose, a preliminary enquiry was directed through the Registrar (Vigilance), with liberty to inspect the records of the petition, the Company Law Board and the company.

Conclusion: A preliminary enquiry was ordered on the question of genuineness of the AGM minutes and the matter was not finally decided on the request for prosecution.

Final Conclusion: The order opened an enquiry into the alleged fabrication and false statement issue, leaving the question of a formal complaint under section 340 of the Code of Criminal Procedure, 1973 to be considered after the enquiry report.

Ratio Decidendi: Where the alleged falsity of a document or statement is supported by material requiring factual verification, the Court may direct a preliminary enquiry before deciding whether to initiate proceedings under section 340 of the Code of Criminal Procedure, 1973.

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