2013 (2) TMI 912 - SC - Indian Laws

Supreme Court: Accused can't interfere at interlocutory stage, must use Section 482 for remedy

M/s. Iris Computers Ltd. Versus M/s. Askari Infotech P. Ltd. & Ors.

The Supreme Court held that the Magistrate was not justified in recalling the summons based on the respondents' application under the Code of Criminal ... - ISSUES PRESENTED AND CONSIDERED 1. Whether a Magistrate is justified in recalling an order issuing summons and returning a complaint under Section 201(1) of the Code on an application made by the accused under Sections 202, 203 and 245 of the Code after process has been issued. 2. Whether, once a Magistrate has taken cognizance and issued process under Section 204, the appropriate remedy for challenging the issuance of process (including on grounds of lack of territorial jurisdiction or perversity) is to invoke the inherent power under Section 482 of the Code rather than seeking dismissal under Section 203. 3. The applicability and precedential weight of the three-judge bench holding that review/interference with issuance of process is not provided for under the Code (and that Section 482 is the remedy), as against earlier contrary authority allowing recall/review by the Magistrate. ISSUE-WISE DETAILED ANALYSIS Issue 1: Validity of recalling summons and returning complaint under Section 201(1) on accused's application under Sections 202, 203 and 245 after issuance of process Legal framework: The relevant provisions are Sections 200-205 (complaint, inquiry and issuance of process), Section 201(1) (return of complaint), Section 202-203 (power of Magistrate to examine the complainant and witnesses and dismissal of complaint at preliminary stage), Section 204 (issuance of process), and Section 245 (powers of Court in summary procedure). The Code contemplates a preliminary stage (inquiry under Sections 200-202 leading to dismissal under Section 203) prior to issuance of process under Section 204; post-process the accused acquires procedural rights not available at the earlier stage. Precedent treatment: The Court relied on and applied the three-judge bench reasoning in Adalat Prasad which held that once process under Section 204 has been issued the stage of Section 203 is over and the accused cannot invoke Section 203 to seek dismissal; recall/review of issuance of process is not provided by the Code and the remedy for erroneous issuance of process is invocation of inherent powers under Section 482. The Court treated earlier contrary views (e.g., K.M. Mathew) as overruled to the extent inconsistent. Interpretation and reasoning: The Court emphasized the two-stage scheme - preliminary adjudicative stages where the Magistrate, on complainant's materials and any Section 202 inquiry, decides sufficiency to proceed (leading to Section 203 dismissal if lacking) and the subsequent stage after issuance of process when the accused may actively participate. Because Section 203 is a preliminary-stage provision not envisaging participation by the accused, an application by the accused under Sections 202/203/245 after process has been issued is impermissible to displace that procedural scheme. Allowing the accused to invoke Section 203 after issuance of process would effectively permit a review of the Magistrate's satisfaction/reasoning at the Section 204 stage, a power the Code does not confer on subordinate criminal courts. Ratio vs. Obiter: The holding that a Magistrate cannot recall process and return the complaint by permitting an accused to invoke Sections 202/203 after process issuance is treated as ratio, grounded on statutory scheme and prior three-judge precedent. Observations explaining the rationale of preliminary vs. subsequent stages are integral to the ratio. Conclusion: The Magistrate was not justified in recalling the order issuing summons and returning the complaint on the accused's application under Sections 202, 203 and 245 after process had been issued; such relief must be sought by appropriate extraordinary remedy (see Issue 2). Issue 2: Availability and appropriateness of Section 482 as the remedy to challenge issuance of process (including for lack of territorial jurisdiction) Legal framework: Section 482 confers inherent jurisdiction on High Courts to make orders necessary to prevent abuse of process or secure ends of justice; the Code lacks an express review mechanism for an order of issuance of process once Section 204 stage is reached. Precedent treatment: The Court followed the three-judge bench decision (Adalat Prasad) holding that in absence of express review or inherent power in subordinate criminal courts to recall or review an order issuing process, the aggrieved accused should invoke Section 482. Subsequent decisions (Bholu Ram, Subramanium Sethuraman, N.K. Sharma, Everest Advertising) have reiterated and followed this position. Interpretation and reasoning: The Court reasoned that if a Magistrate issues process without any allegation or material implicating the accused, or in contravention of Sections 200/202, the order may be vitiated; however, the Code does not contemplate interlocutory attack by the accused under Section 203 at that stage. Given the absence of a statutory review mechanism, Section 482 of the Code is the appropriate remedy to set aside vitiated issuance of process or to raise jurisdictional objections, including territorial jurisdiction. The Court rejected the proposition that Section 201 return at that stage can be used to circumvent the statutory scheme when the accused seeks dismissal after process. Ratio vs. Obiter: The directive that Section 482 is the appropriate remedy to challenge issuance of process (including territorial jurisdiction) is ratio and binds subordinate courts; reasoning that the Criminal Procedure Code does not contemplate review by the Magistrate is core to the decision. Conclusion: Challenges to issuance of process once Section 204 stage is reached, including jurisdictional objections, should be pursued by appropriate petition under Section 482 and not by invoking Section 203/202/245 after process has been issued. Issue 3: Precedential hierarchy - treatment of earlier contrary authority permitting review/recall by Magistrate Legal framework: Hierarchy of precedents and the binding effect of a three-judge bench decision on coordinate benches and later panels of the Court. Precedent treatment: The Court expressly followed and applied the three-judge bench holding (Adalat Prasad) and treated prior contrary authority (K.M. Mathew) as overruled to the extent inconsistent with Adalat Prasad. Subsequent single- and larger bench decisions were cited as following Adalat Prasad. Interpretation and reasoning: Where a three-judge bench has laid down the law that the Code does not provide for review of issuance of process by subordinate courts and that Section 482 is the remedy, later benches must follow that precedent. A decision that overlooked relevant statutory provision(s) or Section 201 cannot be used to resurrect a displaced view; mere failure to notice Section 201 in a prior decision does not render the three-judge bench decision per incuriam when that decision addressed the Code's scheme. Ratio vs. Obiter: The overruling/settling of law - that the Magistrate cannot interfere with issuance of process by permitting accused to invoke Section 203 post-process and that Section 482 is the remedy - is ratio and determinative. Conclusion: The three-judge bench precedent is authoritative and controls; earlier conflicting decisions are not to be followed insofar as they permit recall/review by a Magistrate after issuance of process. Remedial and consequential directions (operative conclusions) 1. The impugned orders recalling summons and returning the complaint were set aside. 2. The Magistrate was directed to restore the complaint to the Board and proceed with the matter in accordance with law. 3. The accused were granted liberty to challenge the jurisdiction of the Magistrate, including territorial jurisdiction, by filing an appropriate petition under Section 482 before the appropriate Court (including the High Court); all other contentions were left open.