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Issues: Whether the High Court was justified in exercising inherent powers to quash the FIR and stop the police investigation at the stage of investigation.
Analysis: The challenge concerned the use of inherent jurisdiction to quash an FIR where the allegations, on their face, disclosed cognizable offences. The governing principle applied was that interference with a police investigation is not ordinarily warranted when the FIR makes out a cognizable offence, and such interference is permissible only in rare cases where the prosecution is shown to be malicious or vexatious. The Court found that, without a full investigation, it was not proper to conclude that the allegations were false or that continuation of the investigation would amount to abuse of process.
Conclusion: The High Court was not justified in quashing the FIR and interfering with the investigation; the police investigation was required to continue.
Final Conclusion: The order quashing the FIR was set aside and the criminal investigation was permitted to proceed in accordance with law.
Ratio Decidendi: Inherent powers should not be used to quash an FIR at the investigation stage when the allegations prima facie disclose a cognizable offence, unless the case falls within exceptional circumstances showing malicious or vexatious prosecution.