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Issues: Whether the High Court was justified in staying investigation and restraining coercive action in writ petitions seeking quashing of FIRs and ECIR, and whether such interim protection could be granted without conforming to the governing limits on the exercise of inherent and writ jurisdiction.
Analysis: The writ petitions were at the stage of challenge to criminal proceedings and the investigation was nascent. In such matters, the power under Section 482 of the Code of Criminal Procedure, 1973 and Article 226 of the Constitution of India must be exercised sparingly and with circumspection. The settled position is that courts should not thwart investigation into cognizable offences, should not ordinarily direct that no coercive steps be taken, and should not convert proceedings under Section 482 into a substitute for anticipatory bail under Section 438 of the Code of Criminal Procedure, 1973. Interim stay of investigation can be granted only in exceptional cases and supported by brief reasons showing application of mind. The High Court's interim orders were inconsistent with these principles and with the guidelines governing such restraint orders.
Conclusion: The interim orders of the High Court were unsustainable and were set aside. The proceedings before the High Court remained open to be decided on their own merits.
Ratio Decidendi: A High Court should not, in ordinary course, stay investigation or grant blanket protection from coercive action in a quashing petition; such relief is permissible only in exceptional cases, with brief recorded reasons, and cannot operate as a substitute for anticipatory bail.