1996 (3) TMI 567

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....ge-scale defalcation of public funds, fraudulent transactions and falsification of accounts, to the tune of around ₹ 500 crores, came to light in the Animal Husbandry Department of the State of Bihar. This had taken place during the years 1977-78 to 1995-96. A similar situation prevailed in the Education, Cooperation and Fisheries Departments. It is agreed by all the counsel that an in-depth investigation is required to be made. The only controversy between counsel on either side is whether the High Court, in exercise of its power under Article 226, could take the investigation away from the State police and entrust it to the Central Bureau of Investigation (CBI). 4. Shri F.S. Nariman, learned senior counsel appearing for the State, ....

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....e police of its statutory power and entrusted the same to the CBI, which upset the distribution of powers under the Constitution. Shri Soli J. Sorabjee, learned senior counsel, supporting all the contentions, submitted that the power was traceable to Entry 39 of the Government of India Act, 1935. the State police could not be divested of the power. The investigation by the Central agency could not have been ordered by the High Court without the consent of the State Government. 5. On the other hand, Shri Shanti Bhushan, learned senior counsel leading for the respondents, contended that the power of the High Court was unlimited. There were self-imposed limitations on the exercise of that power. In view of the enormity of the fraudulent trans....

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....the Constitution to direct an investigation by the CBI, though without the consent of the concerned State, is the subject matter of a reference pending consideration of a Constitution Bench of five Judges of this Court. (This is in W.P. Nos. 531-36 of 1985 by order dated March 10, 1989.) Therefore, the frontiers of the power of the High Court under Article 226 to give directions to the CBI to investigate into offences without the State's consent, are already before this Court and shall be gone into. All arguments addressed by learned Counsel on either side would be considered and dealt with by the Constitutional Bench. 7. The only question then is whether this is a fit case for our interference under Article 136 of the Constitution? Th....