Prima facie false evidence under Section 340 CrPC requires intentional falsehood and an inquiry expedient in justice.

Section 340 CrPC may be invoked only when the court forms a prima facie view that an offence affecting the administration of justice appears to have been committed and that inquiry is expedient in the interests of justice. The material described in the article indicated that the asserted conversion of a partnership firm into a company under Part IX of the Companies Act, 1956 lacked the statutory basis required for such conversion, supporting an inference of sworn falsity. The inquiry at this stage is limited to deciding whether a complaint should be made, not to determining guilt.

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Issues: Whether the material on record disclosed a prima facie case of deliberate falsehood and false evidence so as to justify initiation of proceedings under section 340 of the Code of Criminal Procedure, 1973.

Analysis: The power under section 340 of the Code of Criminal Procedure, 1973 is attracted only where the court forms a prima facie opinion that an offence affecting the administration of justice appears to have been committed and that it is expedient in the interests of justice to inquire into it. The material placed before the Court showed that the statement that the company was the successor of the partnership firm under Part IX of the Companies Act, 1956 was unsupported by the statutory requirements for such conversion. The record indicated absence of the mandatory basis for conversion and supported the inference that the affidavits were sworn with knowledge of their falsity. The Court held that the threshold for initiating an inquiry was satisfied, while reiterating that the inquiry was not for determining guilt but only for deciding whether a complaint should be made.

Conclusion: The issue was answered in favour of initiating proceedings and against the respondents.

Final Conclusion: The impugned order was set aside and the matter was directed to proceed under section 340 of the Code of Criminal Procedure, 1973 independently and uninfluenced by the observations in the judgment.

Ratio Decidendi: For action under section 340 of the Code of Criminal Procedure, 1973, the court must be satisfied that the material discloses a prima facie case of intentional falsehood or fabrication of evidence and that inquiry into the offence is expedient in the interests of justice.

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