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Issues: Whether a Magistrate can direct registration of an FIR under Section 156(3) of the Code of Criminal Procedure, 1973 on a bare application without insisting on prior recourse to Sections 154(1) and 154(3) and without an affidavit, especially where the dispute arises out of SARFAESI proceedings.
Analysis: Power under Section 156(3) is judicial in character and requires application of mind. The applicant must ordinarily disclose prior steps taken under Sections 154(1) and 154(3), and the application should be supported by an affidavit so that false or vexatious invocations of criminal process can be deterred. In matters arising from secured-creditor action under the SARFAESI Act, the Magistrate must also remain conscious of the statutory scheme, including the remedy under Section 17 and the protection under Section 32, before directing police investigation. A mechanical direction to register an FIR merely on the basis of allegations is impermissible.
Conclusion: The direction to register the FIR could not be sustained and the appellants succeeded.
Final Conclusion: Criminal process under Section 156(3) cannot be used as a routine or coercive device to bypass statutory remedies or harass parties acting under a fiscal recovery statute; judicial scrutiny and procedural safeguards are mandatory.
Ratio Decidendi: A Magistrate may order investigation under Section 156(3) only after judicial application of mind, and an application seeking such direction should ordinarily be accompanied by an affidavit and disclosure of prior recourse to Sections 154(1) and 154(3), particularly where the dispute stems from proceedings under the SARFAESI Act.
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