Final finding on truthful declarations barred criminal prosecution based on the same allegation.

Where the competent authority has finally held, after enquiry, that declarations verified by departmental authorities were not false and did not involve suppression of material facts, a criminal prosecution founded on the same allegation cannot be sustained. The High Court applied this principle while considering quashing under Section 482 CrPC and noted that no appeal had been filed against the Collector's final order, so the finding had attained finality. In those circumstances, the foundation for alleging false declarations had disappeared and continuation of the criminal case was not warranted.

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Issues: Whether criminal proceedings for alleged false declarations and suppression of turnover could be quashed under Section 482 of the Code of Criminal Procedure, 1973, in view of the Collector's final order holding that the declarations were not false.

Analysis: The Collector had, after enquiry, held that the declarations filed by the petitioner were verified by the departmental authorities and that the particulars furnished could not be treated as false or as involving suppression of material facts. No appeal was preferred against that order, and it attained finality. In those circumstances, the foundation for prosecuting the petitioner on the allegation of false declarations did not survive, and continuation of the criminal case was not warranted.

Conclusion: The prosecution was liable to be quashed and the issue was answered in favour of the petitioner.

Final Conclusion: The criminal petition succeeded, and the proceedings against the petitioner were set aside.

Ratio Decidendi: Where the competent authority has finally held that the declarations are not false and that finding has attained finality, criminal prosecution founded on the same allegation cannot be sustained.

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