Anushka Arora and Anr v. Punjab and Sind Bank and Ors

INoTHEoPUNJABoANDoHARYANAoHIGHoCOURToATo CHANDIGARHo o o o o o o o o o CWP-24190-2022oo(O&M).o DateoofoDecision:o17.03.2023.o o o ANUSHKAoARORAoANDoANOTHERo o ..oPetitionerso Versuso o o PUNJABoANDoSINDoBANKoANDoOTHERSo ...oRespondentso o o CORAM:oHON'BLEoMR.oJUSTICEoVINODoS.oBHARDWAJ.o o PRESENToo Mr.oPuneetoBali,oSr.oAdvocate,owitho o o o o o Mr.oSurjeetoBhadu,oAdvocate,oandoo o o o o o Mr.oVeeroSingh,oAdvocate,oforotheopetitioners.oo Mr.oGauravoGoel,oAdvocate,oandoo o o o o Mr.oNavjitoSingh,oAdvocate,oo o o o o o forotheorespondentoNo.1.oo Mr.oSuniloChadha,oSr.oAdvocate,owithoo o o o Mr.oAkshayoChadha,oAdvocate,oo o o o o Mr.oVaibhavoNarang,oAdvocate,oandoo o o o o Mr.oJaiveeroChandel,oAdvocate,oo o o o o fororespondentsoNo.2oando3.oo o VINODoS.oBHARDWAJ,oJ.o o o Theopresentowritopetitionohasobeenofiledoforoseekingoissuanceoofo directionsotoorespondentoNo.1-PunjaboandoSindoBank,oHalloBazaroBranch,o Amritsar,otoodefreezeotheobankoaccounts/fixedodepositoaccountsoinotheonameo ofotheopetitionersoandotheiroproprietorshipoconcerns.oQuashingoofoletterodatedo

14.07.2022o (Annexureo P-1)o writteno byo Incharge,o Cybero Crimeo Cell,o Haridwar,oUttrakhand,owasoalsooprayedofor.oo

o o Brieflyosummarized,otheofactsoofotheopresentocaseoareothatotheo petitionerso areo daughterso ofo oneo Rakesho Mehra,o proprietoro ofo theo firmso namelyoM/soSrioShivajioGlobaloExportoandoM/soShivaoMahadevoOverseas.o PetitionersoNo.1oando2oareoalsoocarryingoonotheirobusinessothroughotheiroowno proprietorshipoconcernsonamelyoMs.oSrioShivaoCorporationoandoM/soShivo ShaktioOrganicoProductsorespectively.oo o o RakeshoMehra,ofatheroofotheopetitionersowasohavingobusinesso dealingsowithoDivyaoPharmacyoandoPatanjalioAyurvedaoLimitedosituatedoato Haridwar.o Heo usedo too supplyo rawo materialo too theo saido entitieso ando theo businessorelationshipsocontinuedofromotheoperiodo2008otoo2017.oThereowereo certaino unsettledo amountso betweeno theo fathero ofo theo petitionerso ando theo aboveo saido twoo entitieso Divyao Pharmacyo ando theo Patanjalio Ayurvedao Limited.oWithoutogoingointootheomeritsoofosaidodispute,otheosameoresultedoino registeringocaseoFIRoNo.0177odatedo07.06.2022oatoPoliceoStation,oKankhal,o Haridwar,oforotheocommissionoofooffencesounderoSectionso420oando506oofo theo Indiano Penalo Code,o 1860o againsto Rakesho Mehra-theo fathero ofo theo petitioners.oAopetitionoforoseekingoquashingoofotheoaforesaidoFIRowasofiledo byoRakeshoMehra,obeforeotheoHighoCourtoofoUttarakhandoatoNainitalowhereino anointerimostayowasoinitiallyogranted,ohowever,oowingotooaotechnicaloerroroono partoofotheoNotary,otheosaidopetitionowasoeventuallyodismissed.oAnoSLPo(Crl.)o againstotheosaidoorderoisostatedotoobeopendingobeforeotheoHon'bleoSupremeo CourtoofoIndia.oo o o Theopetitionersocontendothatotheyoareoneitheronamedoasoaccusedo inotheosaidoFIRonoroanyoroleohasobeenoassignedotoothem.oAofamilyosettlemento hado takeno placeo withino theo familyo whereino someo propertieso hado beeno transferredo byo theo fathero ofo theo petitionerso ino theiro favouro aso well.o Theo

petitionersoallegeothatotheoInvestigatingoOfficersoareovisitingotheopetitionerso andopressurizingothemotooclearotheoduesoofoDivyaoPharmacyoandoPatanjalio AyurvedaoLimited.oTheopetitionersoinformedotheoinvestigatingoagencyothato Rakesho Mehrao waso noto ino Indiao ando thato sinceo theo petitionerso haveo noo concerno witho theo business/tradeo disputeo ofo Rakesho Mehrao witho Divyao PharmacyoandoPatanjalioAyurvedaoLimited,otheyoshouldonotobeoharassed.o Theo petitionero No.2o thereaftero receivedo ano SMSo fromo theo Banko thato theo paymentsowhichosheowantedotoomakeohadobeenoreversedosinceotheoaccountso ofotheopetitionersohaveobeenofreezedoonoaoletterodatedo14.07.20222oissuedobyo theoCyberoCrimeoCell,oHaridwar.oTheodetailoofotheoaccountsoorderedotoobeo freezedobyotheoCyberoCrimeoCell,oHaridwar,ovideoLetteroNo.OBoNo-522/22o datedo14.07.2022oisoasounder:-oo Sr.o Banko Accounto Amounto Currento Accounto No.o Account/FDo Holdero (Ino Account/FDo Openingo Accountso Nameo Lakhs)o Dateo Numbero 1o 00011400028491o Srio Shivao 50o FDo 17.08.2022o Corp.oo 2o 00011400028492 SrioShivao 50 FD 17.08.2022o Corp. 3o 00011400028499 SrioShivao 50 FD 18.08.2022o Corp. 4o 00011400028498 SrioShivao 50 FD 18.08.2022o Corp. 5o 00011100099521 Shivoo 100 Currento 25.03.2022o Shaktio Accounto Organico Productso 6o 00011400028383 Anushkao 65 FD 08.07.2022o Arorao 7o 00011400028430 Shivoo 65 FD 28.07.2022o

Shaktio Organico Products 8o 00011400028431 Shivoo 65 FD 28.07.2022 Shaktio Organico Products 9o 00011400028432 Shivoo 65 FD 28.07.2022 Shaktio Organico Products 10o 00011400028433 Srio Shivao 65 FD 28.07.2022 Corp.o 11o 00011400028451 Shivoo 65 FD 02.08.2022o Shaktio Organico Products 12o 00011400028452 Shivoo 65 FD 02.08.2022o Shaktio Organico Products 13o 00011400028473 Shivoo 50 FD 09.08.2022o Shaktio Organico Products 14o 00011400028474 Shivoo 50 FD 09.08.2022o Shaktio Organico Products o o o o Itoisofurtheroaverredothatotheoletterodatedo14.07.2022,oissuedobyo theoCyberoCrimeoCell,oHaridwar,oisoseeminglyoanoante-datedodocumentosinceo

itohasodirectedofreezingoofoallotheoaboveoaccounts,omanyoofowhichohaveobeeno openedoafterotheodateoofotheoaboveosaidoletter.oItoisofurtheroallegedothatotheo respondentoAuthoritiesoareobentouponoharassingotheopetitionersotoopressurizeo themotoosubmitotootheoundueoandoillegalodemandsoofotheocomplainant.oo o o Upononotice,owrittenostatementoonobehalfooforespondentsoNo.2o ando3owasofiledowhereinovariousoobjectionsowereotakenoincludingothatotheo writopetitionobeingonotomaintainableoforowantoofoterritorialojurisdictionosinceo theoFIRoinoquestionohasobeenolodgedoandopendingoinvestigationowithotheo UttarakhandoPolice.oItowasoalsooaverredothatotheopetitionersohaveoconcealedo theomaterialofactsofromotheoCourtoandothatotheoquashingopetitionofiledobyotheiro fathero hado alreadyo beeno dismissedo byo theo Higho Courto ofo Uttarakhando ato NainitaloandoproceedingsoagainstotheoNotaryoPublicohaveoalsoobeenoinitiatedo foro attestingo theo affidavito especiallyo wheno Rakesho Mehrao fathero ofo theo petitionersowasonotoinoIndiaoonotheodateowhenotheoaffidavitowasoattested.oItoiso statedothatofatheroofotheopetitionersohadotransferredomoneyoobtainedobyohimo byoplayingofraudouponotheoDivyaoPharmacyoandoPatanjalioAyurvedaoLimitedo tootheobankoaccountsoofotheopetitionersoherein.oItohasoalsoobeenostatedothatotheo petitionersohadonotobeenoco-operatingoinotheoinvestigationoofotheocaseoando wereo avoidingo noticeso issuedo byo theo investigatingo agency.o Theo FIRo waso registeredo sinceo goodso wereo noto deliveredo byo Rakesho Mehrao despiteo obtainingohugeoamountsotootheotuneoofoRs.31ocroresoapproximately.oo o o Noticeso undero Sectiono 41-Ao ofo theo Codeo ofo Criminalo Procedure,o1973o(hereinafteroreferredotooaso'Cr.P.C.')owereoalsoopastedoatotheo residenceo ofo theo petitionerso buto theyo choseo noto too appearo beforeo theo Investigatingo Agency.o Detailso aso too theo stepso takeno byo theo investigatingo agencyotooconductoinvestigationoagainstotheopetitionersohaveoalsoobeenoseto

outo whicho areo howevero irrelevanto foro theo adjudicationo ofo theo presento controversyoandoareohenceonotobeingoadvertedoto.oo o o Learnedo counselo appearingo foro respondento No.1-Punjabo ando Sindo Bank,o however,o haso submittedo thato theo accountso ino questiono wereo orderedo toobeo frozeno byo theo investigatingo agencyo ando thato theyo haveo noo personaloreasonsoagainstofreezing/de-freezingoofotheoaforesaidoaccounts.oo o o Noorejoinderotootheowrittenostatementofiledobyotheorespondentso hasobeenofiledobyotheopetitioners.o o o Learnedo counselo appearingo ono behalfo ofo theo petitionerso haso vehementlyoarguedothatotheoactionoofotheorespondentoAuthoritiesoisoillegalo ando iso ano acto ofo ano abuseo ofo power.o Heo reiterateso thato theo ordero datedo

14.07.2022odirectingofreezingoofotheoaccountsothatowereoopenedolateroinopointo ofotimeoshowsothatotheoletterodirectingofreezingoofotheoaccountsoisoanoante-datedodocument.oHeofurtherosubmitsothatotheopetitionersoareonotoaccusedoino theosaidocaseoandotheotransactions,oifoany,oareobetweenoRakeshoMehraoi.e.otheo fatheroofotheopetitionersoandotheocomplainant.oOnceothereoareonoofinancialo transactionsoofotheopetitionersowithotheocomplainant,othereoisonoooccasionoforo theorespondentoAuthoritiesotoodirectofreezingoofotheobankoaccountsobelongingo tootheopetitioners.ooAsoaoresultoofotheoaboveosaidoorderoofofreezingoofobanko accounts,o businesso ofo theo petitionerso haso sufferedo ao seriouso setback.o Noo offenceounderoSectiono420oofotheoIndianoPenaloCode,o1860ocouldobeosaidotoo beomadeooutoevenoinotheoFIRoasoisoevidentofromolongobusinessoassociationoaso thereo waso noo intentiono ofo cheatingo fromo theo initiationo ofo theo businesso relationship.oHeorefersotootheoprovisionsoofoSectiono177oCr.P.C.otoocontendo thatowhereoevenopartoofotheocauseoofoactionoaccruesotootheoprejudiceoofoao person,oCourtsoofothatojurisdictionoareocompetentotooentertainotheopetition.oIto

isoarguedothatoasotheopetitionersoareonotoaccusedoinotheoFIR,ohence,otheyohaveo noooccasionotooseekoquashingoofotheoFIR.ooTheirogrievanceoisorestrictedotoo andoaroseoonoaccountoofofreezingoofotheobankoaccountsothatoareooperationalo withino theo territorialo jurisdictiono ofo thiso Court,o hence,o theo writo petitiono beforeothisoCourtoisomaintainable.oItoisovehementlyoarguedothatoevenoifotheo versiono ofo theo respondentso iso acceptedo thato certaino moneyo hado beeno transferredofromotheobankoaccountoofotheofatheroofotheopetitioners,otheosaido amountoisoonlyotootheotuneoofoRs.4ocroresowhereasotheototaloamountoinotheo accountsothatohadobeenoorderedotoobeofreezedoisoapproximatelyoRs.22oCrores.oo o o Theo respondentso thuso cannoto strangulateo theo businesso operationsoandotheoresourcesoofotheopetitionersoinosuchoanoillegalomannero onlyo too makeo themo bleedo ando too agreeo too theo unfairo termso undero sucho pressure.oHeoplacesorelianceoonotheojudgmentoofotheoHon'bleoSupremeoCourto inotheomatteroofoNavinchandraoN.oMajithiaoVs.oStateoofoMaharashtra,oAIRo 2000oSCo2966.oTheorelevantoextractoofotheoaforesaidojudgmentoisoreadsothus:-oo

25.oArticleo226oofotheoConstitutionoofoIndiaowhichoprovidesotheo powerotooHighoCourtsotooissueocertainowritsoreadsoasofollows:-o o "226.oPoweroofoHighoCourtsotooissueocertainowrits.o-o(I)o NotwithstandingoanythingoinoArticleo32,oeveryoHighoCourto shallohaveopower,othroughoutotheoterritoriesoinorelationotoo whichoitoexercisesojurisdiction,otooissueotooanyopersonooro authority,o includingo ino appropriateo cases,o anyo Government,owithinothoseoterritoriesodirections,oordersooro writs,o includingo writso ino theo natureo ofo habeaso corpus,o mandamus,oprohibition,oquoowarrantooandocertiorari,ooro anyo ofo them,o foro theo enforcemento ofo anyo ofo theo rightso conferredobyoPartoIIIoandoforoanyootheropurpose.o

(2)oTheopoweroconferredobyoclauseo(1)otooissueodirections,o ordersoorowritsotooanyoGovernment,oauthorityooropersono mayo alsoo beo exercisedo byo anyo Higho Courto exercisingo jurisdictionoinorelationotootheoterritoriesowithinowhichotheo causeoofoaction,owhollyooroinopart,oarisesoforotheoexerciseo ofo sucho power,o notwithstandingo thato theo seato ofo sucho Governmentooroauthorityoorotheoresidenceoofosuchopersono isonotowithinothoseoterritories.o

(3)o o xxxo xxxo xxxo

(4)o o xxxo xxxo xxxoo o

26.oFromotheoprovisionoinoclauseo(2)oofoArticleo226oitoisoclearo thatotheomaintainabilityoorootherwiseoofotheowritopetitionoinotheo HighoCourtodependsoonowhetherotheocauseoofoactionoforofilingo theo sameo arose,o whollyo oro ino part,o withino theo territorialo jurisdictionoofothatoCourt."o o oo Furthero relianceo iso placedo ono theo judgmento ofo theo Hon'bleo SupremeoCourtoinotheomatteroNevadaoPropertiesoPrivateoLimitedothrougho itsoDirectorsoVs.oStateoofoMaharashtraoandoanother,oreportedoaso2019o(4)o RCRo(Criminal)o592.oTheorelevantoextractoreadsothus:-o "8.oDecisionoofothisoCourtoinoTapasoD.oNeogyo(supra)owasoino respecto ofo theo banko accountso ando ito dido noto examineo ando answero theo questiono whethero theo expressiono 'anyo property'o wouldo includeo immovableo property.o Thiso questiono was,o however,onoticedoinoparagrapho6oinoTapasoD.oNeogyo(supra),o whicho hado madeo referenceo too ao decisiono ofo theo Delhio Higho Courto inoMs.o Swarano Sabharwalo v.o Commissionero ofo Police,o 1988o Crl.L.J.o 241o (Del.)o DB,oino whicho ito waso heldo thatoSectiono 102orequiresothatotheoseizedopropertyobyoitselfoshouldoleadotoo theo suspiciono thato someo offenceo haso beeno committed.o Ino othero1988oCri.L.J.o241o(Del)o(DB)oCriminaloAppealoarisingo outoofowords,otheodiscoveryoofotheooffenceoshouldobeoaosequelotoo

theodiscoveryoofothatopropertyoandonototheootherowayoaround.o ReferenceoinothisoregardocanoalsoobeomadeotooJagdishoChandero andoOthersov.oStateoandoOthers,o40o(199)oDLT)o233,owhereinotheo petitionerohadochallengedotheoseizureoactionoofotheopoliceoono theogroundothatotheowordo'seizure'oappearingoinoSectiono102oofo theo Codeo wouldo implyo actualo takingo ofo possessiono and,o therefore,o wouldo noto includeo immovableo property.o Thiso contentionowasonotoansweredoandoleftoopenoasotheoDelhioHigho Courtocameotootheoconclusionothatotheoseizureoorderothereino underoSectiono102oofotheoCodeowasonotoinoaccordanceowithotheo statutoryo requiremento aso theo propertyo shouldo beo discoveredo undero circumstanceso whicho createo ao suspiciono ofo theo commissiono ofo ano offence,o thato is,o theo policeo officero shouldo comeoacrossocertainopropertyoinocircumstancesowhichocreateoino hiso mindo ao suspiciono thato ano offenceo haso beeno committed.oSectiono102,oitowasoheld,owouldonotobeoattractedo whereotheopropertyohasonotobeenotracedoorodiscoveredowhicho leadsotooaosuspicionoofoanooffenceohavingobeenocommitted.o Discoveryoofopropertyoshouldoprecedeotheodetectionoofocrime.o Thiso ratioo waso subsequentlyo followedo inoP.K.o Parmaro ando Otherso v.o Uniono ofo Indiao ando Another,o 1999o Crl.L.J.o 2499o (Del.)oino whicho theo Delhio Higho Courto hado reiteratedo thato unlessodiscoveryo ofo theo propertyo leadso too ao suspiciono ofo ano offenceohavingobeenocommitted,oSectiono102oofotheoCodeocannoto beoinvokedoforoseizingosuchoproperties.oTheoDelhioHighoCourto examinedo theo question;o whethero theo discoveryo ofo theo banko accountso hado precededo theo suspiciono ofo theo offenceso havingo beenocommittedoandoheldothatothereowereogoodoreasons,oinoviewo ofotheoattendingocircumstances,owhichohadoledoCentraloBureauo ofo Investigationo (hereinaftero referredo too aso theo 'CBI')o too beo suspiciousoofoanooffenceohavingobeenocommittedoinorelationotoo suchoaccounts.oTheoaccountsowereofoundoeitheroinotheonameoofo non-existentopersonsooroinobogusonamesoandoallosuchoaccountso wereo allegedlyo beingo maintainedo byo theo principalo accused.o

ThereowasosufficientocauseoforotheoCBIotoosetotheocriminalolawo intoomotion.oInothisocase,otheoallegationowasothatosubsidiesowereo obtainedo illegallyo ando withouto entitlemento fromo theo Governmento ofo India,o ando theo amountso soo receivedo wereo depositedoinotheobankoaccountsothatohadoprimaofacieolinkedotheo accusedowithovariousooffencesowithowhichotheyowereocharged.o Theocauseoofoaction,otherefore,oforoseizingotheobankoaccountso aroseowhenoaosuspicionowasocreatedorelatingotootheomultipleo andospuriousohandlingoofobankoaccounts."o o oo o AoreferenceoisoalsoomadeotootheojudgmentoofotheoBombayoHigho CourtoinotheomatteroofoGulamoSarvaroVs.oStateoofoMaharashtraoandoors.o bearingoCriminaloWritoPetitionoNo.1132oofo2017odecidedoono05.02.2018.o Theorelevantoextractowhereoforeadsothus:-o "13.o Powero undero Sectiono 102oofo theo Codeo ofo Criminalo Procedure,o1973ocanobeoinvokedobyoaoPoliceoOfficeroonlyowheno theopropertyotoobeoseizedoisoallegedoorosuspectedotoohaveobeeno stolenoorowhichoisofoundounderosuchocircumstancesoasotoocreateo suspicionoofocommissionoofoanyooffence,osoothatosuchoseizureo provideso effectiveo assistanceo too himo ino theo investigation.o Too exerciseothisopower,oitoisonotonecessaryoforotheoInvestigatingo Officero too justifyo theo seizureo ofo banko accounto byo collectingo evidenceoasoifoaotrialoisobeingoheldoandoitoisoenoughoforohimotoo justifyohisoactionobyoreasonablyoshowingothatotheoamountoinotheo accounto createso ao reasonableo suspiciono ofo commissiono ofo crime.oHowever,oitoisonecessaryoinoaocaseowhereoaccountohaso beenoseizedoorofrozenounderoSectiono102o(1)oCr.P.C.o1973,oito beingoaopropertyonotocapableoofobeingotransportedotooCourtooro actuallyoheldoinocustodyobyotheoPolice,otooreportotheoseizureotoo theoMagistrate,oasorequiredounderosub-Sectiono(3)oofoSectiono 102oCr.P.C.oAousefuloreferenceoinothisoregardomayobeohadotootheo casesoofoStateoofoMaharashtraoVs.oTapasoD.oNeogy,oreportedoino RAJ KUMAR ARORA (1999)o 7o SCCo 685o ando Teestao Atulo Setalvado Vs.o Stateo ofo

Gujarat,oCriminaloAppealoNo.1099/2017odecidedobyoHon'bleo ApexoCourtoono15.12.2017."o o oo AorelianceoisoalsooplacedoonotheojudgmentoofotheoMadrasoHigho CourtoinotheomatteroofoB.oKavithaoVs.oInspectoroofoPoliceoandoothers,o2019o

(2)oLWo(Crl.)o56.oTheorelevantoextractowhereoforeadsothus:-o "6.o oIto isoanounfortunateocaseowhereo theo 1sto respondentohaso completelyomisusedohisopower.oFreezingoofobankoaccountohasotoo beo undertakeno onlyo ino rareo caseso ando thato too ino stricto complianceowithotheomandatoryoprocedureounderosectiono102oofo theoCr.P.C.,o1973oTimeoandoagainothisoCourtohasoheldothatoifoao bankoaccountoisofreezedowithoutonoticeotootheoaccusedopersonso ando withouto submittingo ao reporto beforeo theo Magistrateo immediately,otheosameoamountsotooviolationoofotheomandatoryo procedureoprescribedounderosectiono102oofoCr.P.C.,o1973."o o o o Furthero referenceo waso alsoo madeo too theo judgmento ofo R.o ChandrasekaroVs.oInspectoroofoPolice,oSalemoandoanother,oreportedoaso 2003o(1)oRCRo(Criminal)o503.oTheorelevantoextractoisoreproducedoasounder:-o o "9.oInotheocaseoonohand,otheopositionoisodifferent.oHereoitoisonoto theo discoveryo ofo propertyo thato haso createdo suspiciono thato ano offenceo haso beeno committed.o Thereo areo noo circumstanceso attendantouponotheobankoaccountooroitsooperationothatohaveoledo theo policeo too suspecto thato someo offenceo haso beeno committedo somewhere.oTheoallegationoofotheoprosecutionoisothatotheobanko accounto ino thiso caseo iso ao sequelo too theo discoveryo ofo theo commissiono ofo theo offence.o Thiso iso noto sufficiento too attractoSectiono 102oofo Cr.P.C.o aso ito cannoto beo sinceo thato theo bankoaccountohasobeenotracedoorodiscoveredoinocircumstanceo whicho haveo madeo theo policeo awareo ofo theo commissiono ofo ano offence."o

o o HeofurtherosubmitsothatotheowritojurisdictionoofotheoCourtowouldo notobeobarredomerelyobecauseothereoisoanoalternativeoremedyoprovidedotootheo petitioneroandothatoinoanoappropriateocase,otheoHighoCourtocanodulyoexamineo theoissueodespiteoavailabilityoofootheroalternativeoremediesoespeciallyowheno fundamentalorightsoofoaopersonoareobeingoviolatedoorothereoisoaoviolationoofo principleso ofo naturalo justice.o Further,o whereo theo ordero iso whollyo withouto jurisdictionoevenoinosuchocircumstances,otheowritoCourtocanobeoapproached.o Onceotheoglaringoillegalitiesoareoevidentoreflectedofromotheoproceedingsoofo theopresentocase,otheoactoofotheopetitionersoinoapproachingotheoHighoCourto raisingoaochallengeotootheosameowouldothusobeolawfuloandoappropriate.oItoiso furthero contendedo thato eveno theo procedureo providedo undero Sectiono 102o Cr.P.C.,ohasonotobeenofollowedoinotheopresentocaseoandohence,otheoprocesso suffersofromomaterialoirregularityoandoimpropriety.oItoisoalsooaverredothat,oato thisojuncture,oitoisoonlyoaocaseoofosuspicionothatosomeopartoofotheopropertyo transferredobyofatheroofotheopetitionersotoothemoneedsotoobeokeptoin-tact.oAo mereosuspicionoofotheoinvestigatingoagencyocannotobeosufficientotoofreezeo accountsowhenothereoisonothingotoosuggestothatotheoaforesaidoamountowaso receivedobyotheopetitionersoisoaoproceedoofocrime.oMoreover,otheodiscoveryoofo theo banko accountso iso noto ao resulto ofo disclosureo oro discoveryo ofo theo commissiono ofo offenceo itself.o Thus,o thereo waso noo occasiono foro directingo freezingo ofo theo banko account.o Heo contendso thato theopoliceo officerso wereo requiredotooreferotheoissueotootheoMagistrateoandoalsoothatosinceotheodetailsoofo theo accountso wereo alreadyo madeo available,o thereo waso noo necessityo foro directingofreezingoofotheoaccounts.ooo o o Learnedo counselo appearingo ono behalfo ofo theo Stateo ofo Uttrakhand,oonotheootherohand,ohasoarguedothatotheoinvestigationoofotheocaseo

isoyetonotoconcludedoandothatothereoisosufficientoevidenceotooshowothatotheo moneyohadobeenotransferredofromotheoaccountoofotheofatheroofotheopetitionerso tootheoaccountsoofotheopetitioners.oHeosubmitsothatovariousonoticesowereosento byotheoInvestigatingoAgencyotootheopetitioners,ohowever,otheyoneverochoseotoo submitotheonecessaryodocuments.oHeofurtheroaversothatotheopetitionersohaveo appendedoonlyooneoletterosentobyotheopoliceotootheobankoforofreezingoofotheo accountsoandothatotheootheroaccountsowereofrozenopursuantotootheosubsequento ordersopassedobyotheoinvestigatingoagencyoono12.08.2011oando22.09.2022oaso welloandotheosameohaveonotobeenoattached.oHence,otheoorderoofofreezingotheo banko accountso iso noto ante-datedo aso suggested.o Ito iso submittedo thato theo petitionersohaveoalsoothereafterobeenoarrayedoasoaccusedoinotheoaboveosaido FIRoNo.0177odatedo07.06.2022ounderoSectionso420oando506oofotheoIndiano PenaloCode,o1860oandothatotheyohaveoalreadyofiledoaoquashingopetitionobeforeo theo Higho Courto ofo Uttarakhando ato Nainital.o Onceo theo petitionerso haveo alreadyoapproachedotheoHighoCourtoofoUttarakhandoatoNainitalobyofilingoao writopetition,othereoisonoooccasionowhyotheopetitionersooughtonototoohaveoalsoo raisedoaochallengeotootheoordersopassedobyotheoinvestigatingoofficerodirectingo freezingoofotheobankoaccountsoasowell.oHeorefersotootheojudgmentoofotheo AndhraoPradeshoHighoCourtoinotheomatteroofoMetkoreoAlloysoandoIndustrieso LimitedoHyderabadoandoanotheroVs.oUnionoofoIndiaoandoanother,obearingo WritoPetitionoNo.37056oofo2013odecidedoono24.01.2014,oreportedoaso2014o

(1)oAndhoLDo(Criminal)o980.oTheorelevantoextractoofotheosameoreadsothus:-o o o"12.oCompanyoofocomplainantoisoregisteredoinoMumbai.oSaido companyo madeo investmentso througho theo officeo locatedo ino MumbaioandotheotransactionsowereoundertakenoinoMumbaioando amountso payableo foro theo transactionso undertakeno byo theo

complainanto wereo too beo madeo ino Mumbai.o Theo complainanto allegesoconspiracyoandocollusionobyotheoDirectorsoofoNSELoando tradingomembersoinomisappropriatingohugeopublicofundsoando causingo defaulto ino makingo paymento ofo amountso dueo too theo complainant.oAobareoperusaloofocomplaintobringsooutothatoentireo causeoofoactionoaroseowithinotheoStateoofoMaharastra.oThus,o Maharastrao Stateo Policeo areo entitledo too investigateo intoo theo crime.oPetitionersodoonotoassailotheojurisdictionoofoMaharastrao Policeotooinvestigateointootheocrime.oTheoreliefosoughtobyotheo petitionerso iso againsto theo decisiono ofo Maharastrao Policeo applyingotheoprovisionsoofotheoAct,o1999,owhileoinvestigatingo intootheoCrimeoNo.89oofo2013.oTheoconsequentialoreliefsosoughto byotheopetitionersorelateotootheostepsotakenobyotheoMaharastrao Policeotooseizeotheopropertiesoofotheopetitionersoandotoofreezeo theoaccounts,oconsequentotootheodecisionotooinvestigateointootheo crimeoinoaccordanceowithotheoprovisionsoofotheoAct,o1999.oOnceo theocompetencyoofoMaharastraoStateoPoliceotooinvestigateointoo Crimeo No.89o ofo 2013o iso noto doubted,o thiso Courto haso noo jurisdictiono too entertaino theo writo petitiono ando considero theo grievanceoofotheopetitioners.oThisoCourtohasonoojurisdictionotoo goointootheoveracityoandocorrectnessoofotheodecisionotakenobyo theoMaharastraoStateoPoliceoasopartoofoinvestigationointooCrimeo No.89oofo2013.oThisoCourtocannotoexerciseojurisdictionooverotheo SpecialoSessionsoCourt,oMumbai,owhichoisotheodesignatedoCourto underoAct,o1999.oTheolocationoofoHeadoOfficeoofofirstopetitionero company,olocationoofowarehouseoofotheofirstopetitionerocompanyo andotheoexistenceoofobankoaccountsoinotheobranchesolocatedoino StateoofoAndhraoPradesh,oareonotorelevantotooconferojurisdictiono ono thiso Courto wheno allegationo ofo criminalo offenceo waso committedoinoStateoofoMaharastra."o o o o Ao referenceo iso alsoo madeo too theo judgmento ofo theo Karnatakao Higho Courto ino theo mattero ofo Coastalo Mineso ando Mineralso Vs.o Stateo ofo

Chhattisgarhoandoothers,oreportedoaso2014o(12)oRCRo(Criminal)o1019.oTheo relevantoextractoofowhichoreadsothus:-o "Therefore,o thiso courto doeso noto chooseo too addresso theo rivalo contentions,oonofactualoaspectsoofotheomatter.oItoisoevidentothato thisocourtohasoentertainedotheopresentopetitionsoonotheoprimaryo grievanceo ofo theo petitionerso thato theo Raipuro Policeo haveo compelledotheoseveralobanks,owhereotheopetitionersoholdobanko accountso withino theo jurisdictiono ofo thiso court,o too freezeo theo operationo ofo theo accounts.o Theo entertainmento ofo theo writo petitionso haso beeno questionedo byo theo respondentso ono theoquestionoofojurisdictionoandoitoisoparticularlyosoughtotoobeo canvassedo thato eveno accordingo too theo petitioners,o theo contractualorelationshipowasocreatedoinotheoStateoofoGoaoando theotransactionohasotakenoplaceoinotheoStateoofoGoaoandothatotheo causeo ofo action,o ifo any,o wouldo beo onlyo ino thato Stateo ando therefore,otheomereofactothatothereoareobanks,oinowhichoaccountso areoheldobyotheopetitionersowithinotheojurisdictionoofothisocourt,o wouldohardlyoaffordojurisdictionoinorespectoofotheotransactiono oroinorespectoofotheoproceedingsoinitiatedobyotheoRaipuroPolice,o whooareooutsideotheojurisdictionoofothisocourt.oThisoaspectoofotheo mattero iso noo longero reso integra,o sinceo Clauseo (2)o ofoArticleo 226oofo theo Constitutiono ofo Indiao clearlyo wouldo affordo jurisdictionotoothisocourt.oIfoitoisoanoadmittedofactothatotheobanko accountsoofotheopetitionersoheldobyothemoinobanksowithinotheo jurisdictionoofothisocourtoareoinvolved,oitocouldothenobeosaidothato theocauseoofoactionoforotheopetitionersohasoarisenopartlyowithino theo jurisdictiono ofo thiso court.o Thiso iso affirmedo ino severalo decisionsoofotheoapexoCourt."o o o o Ao referenceo iso alsoo madeo too theo judgmento ino theo mattero ofo NeelofaroAbassoVs.oStateoofoJ&Koandoothers,oreportedoaso2021oCriLJo580.o Theorelevantoextractoofotheojudgmentoisoreproducedoasounder:-o

"9.o Nowo ito iso too beo seeno whethero theo Banko accounto ofo oneo spouseo cano beo frozeno wheno theo mattero undero investigationo pertainso too theo othero spouse.o Ato thiso juncture,o ito wouldo beo appropriateotootakeonoteoofotheojudgmentoofotheoApexoCourto renderedoinocaseotitledoStateoofoMaharashtraoversusoTapasoDo Neogyoreportedoino(1999)o7oSCCo685.oTheorelevantoparasoareo6o ando12oofotheojudgment,otheosameoareoreproducedoasounder:o "6.o Ao plaino readingo ofo sub-sectiono (1)o ofoSectiono 102oindicatesothatotheopoliceoofficerohasotheopowerotooseizeo anyo propertyo whicho mayo beo foundo undero circumstanceso creatingosuspicionoofotheocommissionoofoanyooffence.oTheo legislatureohavingousedotheoexpressiono"anyoproperty"oando "anyooffence"ohaveomadeotheoapplicabilityoofotheoprovisionso wideoenoughotoocoverooffencesocreatedounderoanyoAct.oButo theo twoo preconditionso foro applicabilityo ofoSectiono 102(1)oareo thato ito musto beo "property"o ando secondly,o ino respectoofotheosaidopropertyothereomustohaveobeenosuspiciono ofocommissionoofoanyooffence.oInothisoviewoofotheomatterotheo twoo furthero questionso thato ariseo foro considerationo areo whetherotheobankoaccountoofoanoaccusedooroofohisorelationo canobeosaidotoobeo"property"owithinotheomeaningoofosub-sectiono (1)o ofoSectiono 102oCrPCo ando secondly,o whethero circumstancesoexist,ocreatingosuspicionoofocommissionoofo anyooffenceoinorelationotootheosame.oDifferentoHighoCourtso inotheocountryohaveotakenodivergentoviewsoinothisoregard.oIno theocaseoofoSwaranoSabharwalov.oCommr.oofoPoliceo[1988o CrioLJo241o(Del)o(DB)]oaoDivisionoBenchoofotheoDelhioHigho Courtoexaminedotheoquestionowhetheroaobankoaccountocano beo heldo too beo "property"o withino theo meaningo ofoSectiono 102oCrPC.oInotheosaidocase,oproceedsorealisedobyosaleoofo officialosecretsowereodepositedobyotheoaccusedoinohisowife'so account.oTheoCourtoinothatocaseocameotooholdothatoitoisonoto quiteosureowhetheromoniesodepositedoinoaobankoaccountocano beo seizedo byo meanso ofo ao prohibitoryo ordero undero theoRAJ KUMAR ARORA

provisionsoofoSectiono102obutoevenoassumingothatoaobanko accountoisoao"property"owithinotheomeaningoofoSectiono102o ofo theo Codeo ofo Criminalo Procedure,o theo furthero considerationomustobeosatisfiedonamelyothatotheopropertyo haso beeno foundo undero circumstanceso whicho createo theo suspicionoofotheocommissionoofoanooffence.oButoinothatocaseo ito iso noto theo discoveryo ofo theo propertyo thato haso createdo suspiciono ofo commissiono ofo ano offenceo buto ono theo othero handotheodiscoveryoofotheobankoaccountoisoaosequelotootheo discoveryoofocommissionoofooffenceoinasmuchoasotheopoliceo suspectedothatosomeoofotheoproceedsorealisedobyotheosaleoofo theo officialo secretso haveo beeno passedo ono too theo banko accountoofotheowifeoofotheoaccused.oTherefore,otheoCourto waso ofo theo opiniono thato theo provisionso ofoSectiono 102ocannoto beo invoked.o Ino theo caseo ofoPurbanchalo Roado Serviceov.oStateo[1991oCrioLJo2798o(Gau)]oaolearnedoSingleo JudgeoofotheoGauhatioHighoCourtoexaminedotheoprovisionso ofoSectiono 102oofo theo Criminalo Procedureo Codeo ando theo validityo ofo ano ordero byo ao policeo officer,o prohibitingo theo Bankofromopayingoamountotootheoaccusedofromohisoaccount.o TheolearnedoJudgeocameotootheoconclusionothatotheowordo "seize"o usedo inoSectiono 102oCrPCo meanso actualo takingo possessionoinopursuanceoofoaolegaloprocessoand,otherefore,o inoexerciseoofotheosaidopower,oaobankocannotobeoprohibitedo nototoopayoanyoamountooutoofotheoaccountoofotheoaccusedotoo theoaccusedonorocanotheoaccusedobeoprohibitedofromotakingo awayoanyopropertyofromotheolocker,oasosuchoanoorderowouldo notobeoao"seizure"owithinotheomeaningoofoSectiono102oofotheo Criminalo Procedureo Code.o Theo learnedo Singleo Judgeo agreedowithotheoviewotakenobyotheoAllahabadoHighoCourtoino theocaseoofoTextileoTradersoSyndicateoLtd.ov.oStateoofoU.P.o [AIRo1960oAllo405o:o1960oCrioLJo871]oInotheoAllahabado caseoonowhichotheoGauhatioHighoCourtoreliedoupono(Textileo Traderso[AIRo1960oAllo405o:o1960oCrioLJo871]o),owhatowaso

decidedobyotheoCourtois,oonceomoneyopassesoonofromotheo accusedotoosomeootheropersonoorotootheobank,omoneyoitselfo becomesounidentifiableoand,otherefore,othereocannotobeoanyo questionoofoseizureoofotheosameobyotheopoliceoofficer.o

12.o Havingo consideredo theo divergento viewso takeno byo differentoHighoCourtsowithoregardotootheopoweroofoseizureo underoSectiono102oofotheoCodeoofoCriminaloProcedure,oando whethero theo banko accounto cano beo heldo too beo "property"o withinotheomeaningoofotheosaidoSectiono102(1),oweoseeonoo justificationo too giveo anyo narrowo interpretationo too theo provisionsoofo theo Criminalo Procedureo Code.o Ito iso wello knowno thato corruptiono ino publico officeso haso becomeo soo rampantothatoitohasobecomeodifficultotoocopeoupowithotheo same.o Theno againo theo timeo consumedo byo theo courtso ino concludingo theo trialso iso anothero factoro whicho shouldo beo borneo ino mindo ino interpretingo theo provisionso ofoSectiono 102oofotheoCriminaloProcedureoCodeoandotheounderlyingo objectoengraftedotherein,oinasmuchoasoifothereocanobeonoo orderoofoseizureoofotheobankoaccountoofotheoaccusedotheno theoentireomoneyodepositedoinoaobankowhichoisoultimatelyo heldo ino theo trialo too beo theo outcomeo ofo theo illegalo gratification,ocouldobeowithdrawnobyotheoaccusedoandotheo courtsowouldobeopowerlessotoogetotheosaidomoneyowhichohaso anyo directo linko witho theo commissiono ofo theo offenceo committedo byo theo accusedo aso ao publico officer.o Weo are,o therefore,opersuadedotootakeotheoviewothatotheobankoaccounto ofotheoaccusedooroanyoofohisorelationsoiso"property"owithino theo meaningo ofoSectiono 102oofo theo Criminalo Procedureo Codeoandoaopoliceoofficeroinocourseoofoinvestigationocano seizeooroprohibitotheooperationoofotheosaidoaccountoifosucho assetsohaveodirectolinksowithotheocommissionoofotheooffenceo foro whicho theo policeo officero iso investigatingo into.o Theo contraryo viewo expressedobyo theoKarnataka,o Gauhatioando AllahabadoHighoCourts,odoesonotorepresentotheocorrectolaw.oRAJ KUMAR ARORA

Ito mayo alsoo beo seeno thato undero theoPreventiono ofo CorruptionoAct,o1988,oinotheomatteroofoimpositionoofofineo underosub-sectiono(2)oofoSectiono13,otheolegislaturesohaveo providedothatotheocourtsoinofixingotheoamountoofofineoshallo takeo intoo considerationo theo amounto oro theo valueo ofo theo propertyo whicho theo accusedo persono haso obtainedo byo committingotheooffenceoorowhereotheoconvictionoisoforoano offenceo referredo too ino clauseo (e)o ofo sub-sectiono (1)o ofoSectiono 13,o theo pecuniaryo resourceso oro propertyo foro whicho theo accusedo persono iso unableo too accounto satisfactorily.oTheointerpretationogivenobyousoinorespectoofo theo powero ofo seizureo underoSectiono 102oofo theo Criminalo ProcedureoCodeoisoinoaccordanceowithotheointentionoofotheo legislatureo engraftedo inoSectiono 16oofo theo Preventiono ofo Corruptiono Acto referredo too above.o Ino theo aforesaido premises,oweohaveonoohesitationotoocomeotootheoconclusiono thatotheoHighoCourtoofoBombayocommittedoerroroinoholdingo thato theo policeo officero couldo noto haveo seizedo theo banko accountoorocouldonotohaveoissuedoanyodirectionotootheobanko officer,oprohibitingotheoaccountoofotheoaccusedofromobeingo operatedoupon.oThoughoweohaveolaidodownotheolaw,obutosoo faroasotheopresentocaseoisoconcerned,otheoorderoimpugnedo hasoalreadyobeenogivenoeffectotooandotheoaccusedohasobeeno operatingohisoaccount,oandoso,oweodoonotointerfereowithotheo same"o o o o o o o o o o o o o o ooooo(EmphasisoSupplied)o

10.oThus,oisoitoisoevidentothatotheobankoaccountoofotheoaccusedo aso wello aso hiso relativeo fallso withino theo definitiono ofo theo "property"o underosectiono 102oCr.P.Co cano beo validlyo frozeno duringotheocourseoofoinvestigation,oifotheocircumstancesoexisto creatingosuspicionoregardingocommissionoofoanyooffence.o

11.o Theo nexto issueo thato ariseso foro theo considerationo ofo thiso Courto iso whethero theo moneyo lyingo ino theo accounto ofo theo

petitionerofallsowithinotheopurviewoofosectiono102oCr.P.Cosooaso toowarrantotheofreezingoofoaccount.oTheorespondentoNo.o3ohaso categoricallyostatedoinotheostatusoreportothatotheoquestionnaireo wasosubmittedotootheopetitioneroandoherohusbandotoosubmitoallo theo propertyo relatedo documentso (botho immovable/movable)o acquiredoduringotheoperiodobeforeotheoInvestigatingoOfficer,obuto theyodidonotofurnishotheosame.oMoreoso,oinoparagrapho15oofotheo petition,otheopetitionerohasosubmittedothatosheomadeoaoformalo representationo ono 20.08.2020o ando theo sameo iso annexedo aso annexureo A-5.o However,o itso perusalo revealso thato theo representationowasomadeotoorespondentoNo.o4oonly,owhoohado frozenotheoaccountoonlyoonotheoinstructionsooforespondentoNos.o 2oando3oandocouldonotohaveobeenoindependentlyode-freezedotheo salaryo accounto ofo theo petitionero withouto thereo beingo anyo instructionsotoothatoextentobyorespondentoNos.o2oando3.oThiso Courto whileo exercisingo writo jurisdictiono underoArticleo 226oofo theo Constitutiono ofo India,o cannoto determineo theo disputedo questionoofofactsoasotoowhetherotheoamountolyingoinotheosalaryo accounto ofo theo petitionero fallso withino theo mischiefo ofosectiono 102o(1)oofotheoCr.P.Cooronot.oThereoareoseriousoallegationsoando investigationoisostillogoingoon.oToobeofairotootheopetitioneroando herohusband,otheoquestionnairesohaveobeenoissuedotoothemobyo InvestigatingoOfficerobutothoseohaveobeenonotorepliedobyotheo petitioneroasowelloasoherohusband.oTheopetitionerohasoanooptiono toodemonstrateobeforeoI.Oothatotheomoneyolyingoinoheroaccounto iso theo remunerationo earnedo byo hero fromo hero employer.o Theo Investigatingo Officero mayo de-feezeo hero accounto ifo hero contentionsoareofoundotoobeogenuineoandootherowiseoafterotheo conclusionoofotheoinvestigationoandoafterotheofilingoofotheoreporto beforeotheoconcernedocourt,otheopetitionerocanostillodemonstrateo beforeotheoconcernedocourtowithoregardotootheolegitimacyoofotheo amountolyingoinoherosalaryoaccount.oRelianceoisoplacedoupono theodecisionoofoApexoCourtoinocaseotitledoTeestaoAtuloSetalvadov.o

Stateo ofo Gujarat,o reportedo ino (2018)o 2o SCCo 372o ando theo relevantoparaoisoreproducedoasounder:o

26.o Althougho botho sideso haveo advertedo too statemento ofo accountso ando voucherso too buttresso theiro respectiveo submissions,o weo doo noto deemo ito necessaryo noro thinko ito appropriateo too analyseo theo sameo whileo consideringo theo mattero ono hando whicho emanateso fromo ano applicationo preferredo byo theo appellantso too defreezeo theo statedo banko accountsopendingoinvestigationoofotheocase.oIndisputably,o theoinvestigationoisostilloinoprogress.oTheoappellantsowillo haveotooexplainotheiropositionotootheoinvestigatingoagencyo andoafteroinvestigationoisocomplete,otheomatterocanoproceedo furthero dependingo ono theo materialo gatheredo duringo theo investigation.o Theo suspiciono entertainedo byo theo investigatingoagencyoasotoohowotheoappellantsoappropriatedo hugeofunds,owhichoinofactowereomeantotoobeodisbursedotootheo unfortunateovictimsoofo2002oriotsowillohaveotoobeoexplainedo byo theo appellants.o Further,o onceo theo investigationo iso completeo ando policeo reporto iso submittedo too theo courto concerned,oitowouldobeoopenotootheoappellantsotooapplyoforo defreezingo ofo theo banko accountso ando persuadeo theo courto concernedo thato theo saido banko accountso areo noo moreo necessaryoforotheopurposeoofoinvestigation,oasoprovidedoino sub-sectiono(3)oofoSectiono102oofotheoCode.oItowillobeoopeno too theo courto concernedo too considero thato requesto ino accordanceo witho lawo aftero hearingo theo investigatingo agency,o includingo too imposeo conditionso aso mayo beo warrantedoinotheofactosituationoofotheocase."o (EmphasisoSupplied)oo o oo Ao furthero referenceo iso alsoo madeo too theo judgmento ofo theo Hon'bleooSupremeoCourtoinotheomatteroofoTeestaoAtuloSetalvadoVs.oStateoofo

Gujarat,oreportedoaso2018o(1)oRCRo(Criminal)o598.oTheorelevantoextractoofo theojudgmentoreadsothus:-o

44.o Theo argumentso impugningo theo freezingo ofo theo accountso underoSectiono102oofoCr.P.C.owithoutonoticeotootheopetitionerso areo too beo notedo foro rejectiono foro theo simpleo reasono thato theoSectiono 102odoeso noto contemplateo issuanceo ofo anyo sucho notice,oandoforotheopurposeoofoinvestigation,onoonoticeotootheo suspectocanobeoexpectedounderotheolaw.oSectiono102oofoCr.P.C.o iso ano importanto stepo towardso investigationo ando ino viewo ofo settledo legalo positiono thato accusedo cannoto haveo anyo sayo ino investigation,o noticeo too theo suspecto iso outo ofo question.o Theo intentiono ofo theo investigatingo agencyo iso noto requiredo too beo revealedotootheosuspectoatothatocrucialostage,oelse,oaomessageoofo alertowouldobeoreceivedobyotheosuspectocreatingoaohugeoroomo foromanipulationoandoorodestructionoofoevidence.o

45.oItoisonoticedofromotheoimpugnedoorderothatotheonoticeoofotheo seizureoorofreezingoofotheoaccountsooroitsointimationowasosentotoo theocompetentomagistrate,oandotherefore,olearnedocounseloforo theopetitionersohasofairlyonotopressedotheosaidoargument.o

46.oItoisoalsoomisconceivedotooargueothatotheoseizureoinoexerciseo ofopowersounderoSectiono102oofoCr.P.C.owouldobeovalidoonlyoifo theoaccountsoinoquestionocontainotheoproceedsoofocrime.o xxxo xxxo xxxo o

17.o Ino theo presento case,o FIRo haso beeno registeredo ato leasto againstothreeoprivateoappellants,onamingothemoasoaccused.oCJPo TrustohasonotobeenonamedoasoanoaccusedoinotheoFIR.oButotheo investigationothuso far,o accordingotoo theorespondents,o revealso thato Teestao Atulo Setalvado ando Javedo Anando areo activelyo associatedo witho theo saido Trustso ando haveo carriedo outo transactionso whicho mayo beo foundo undero circumstanceso RAJ KUMAR ARORA suspiciousoofotheocommissionoofotheoallegedooffence.oThatoiso

stilloaomatteroofoinvestigation.oForotheopresent,otheoInvestigatingo Officero iso ofo theo viewo thato thereo areo certaino circumstanceso emergingofromotheotransactionsodoneofromotheseobankoaccountso whichocreateosuspicionoofotheocommissionoofoanooffence.oItoisoono thatobeliefoheohasoexercisedohisodiscretionotooissueodirectionsotoo seizeotheobankoaccountsopertainingotooCJPoTrust.o xxxo xxxo xxxo

22.oSufficeoitotooobserveothatoasotheoInvestigatingoOfficerowasoino possessiono ofo materialso pointingo outo circumstanceso whicho createosuspicionoofotheocommissionoofoanooffence,oinoparticular,o theooneounderoinvestigationoandoheohavingoexercisedopowerso underoSectiono 102oofo theo Code,o whicho heo could,o ino law,o therefore,o couldo legitimatelyo seizeo theo banko accountso ofo theo appellantso aftero followingo theo procedureo prescribedo ino sub-Sectiono (2)o ando sub-Sectiono (3)o ofo theo sameo provision.o Aso aforementioned,o theo Investigatingo Officero aftero issuingo instructionsotooseizeotheostatedobankoaccountsoofotheoappellantso submittedo reporto too theo Magistrateo concernedo ando thuso compliedowithotheorequirementoofosub-Sectiono(3).o

23.oAlthoughobothosidesohaveoadvertedotoostatementoofoaccountso andovouchersotoobuttressotheirorespectiveosubmissions,oweodoo notodeemoitonecessaryonorothinkoitoappropriateotooanalyseotheo sameowhileoconsideringotheomatteroonohandowhichoemanateso fromoanoapplicationopreferredobyotheoappellantsotoode-freezeo theo statedo banko accountso pendingo investigationo ofo theo case.o Indisputably,o theo investigationo iso stillo ino progress.o Theo appellantso willo haveo too explainotheiro positiono too theo investigatingo agencyo ando aftero investigationoiso complete,otheo matterocanoproceedofurtherodependingoonotheomaterialogatheredo duringo theo investigation.o Theo suspiciono entertainedo byo theo investigatingo agencyo aso too howo theo appellantso appropriatedo hugeofunds,owhichoinofactowereomeantotoobeodisbursedotootheo

unfortunateovictimsoofo2002oriotsowillohaveotoobeoexplainedobyo theoappellants.o Further,oonceotheoinvestigationoisocompleteoandopoliceo reportoisosubmittedotootheoconcernedoCourt,oitowouldobeoopenotoo theoappellantsotooapplyoforode-freezingoofotheobankoaccountso andopersuadeotheoconcernedoCourtothatotheosaidobankoaccountso areo noo moreo necessaryo foro theo purposeo ofo investigation,o aso providedoinosub-Sectiono(3)oofoSectiono102oofotheoCode.oItowillo beo openo too theo concernedo Courto too considero thato requestoino accordanceo witho lawo afterohearingo theo investigatingoagency,o includingotooimposeoconditionsoasomayobeowarrantedoinotheofacto situationoofotheocase."o o o Furthero referenceo iso alsoo madeo too theo judgmento ofo Bombayo HighoCourtoinotheomatteroofoShrioRohanoAshokoJagdaleoVs.oTheoStateoofo Maharasthrao reportedo aso 2015o (46)o RCRo (Criminal)o 159.o Theo relevanto extractoisoasounder:-o "15.o Vinoskumaro Ramchandrano Valluvaro v.o Theo Stateo ofo Maharashtrao (supra),o iso theo Fullo Bencho judgmento ofo thiso Court.o Theo Fullo Bencho haso heldo thato ato theo stageo ofo investigation,onoticeoofoseizureoisonotorequiredotoobeogivenotoo theoaccountoholderobeforeooroatotheotimeoofoattachmentoofotheo bankoaccount.oIn-factothisoisonotoaoboneoofocontentionobyotheo petitionersobeforeous.oTheiroonlyoeffortoisotooshowothatotheyoareo notoaccusedoandoareonotoevenoprivyotootheocrimeobyoShekharo WankhedeooroM/s.oSwastikoBusinessoAdvisoryoandoConsultancy.o Itoisoapparentothatotheoinvestigationoisostillogoingoon,oandotheo investigatingo officero ato leasto aso thiso stageo haso demonstratedo thatoforomoneyoreceivedobyotheopetitioners,opetitionersoareonoto ino ao positiono too bringo ono recordo anyo expenseso incurred.o However,othisoisonotoaostageoatowhichoaofindingocanobeofinallyo recordedoinothisorespect.oo o

16.o Witho theo result,o weo findo thato theo amountso earnedo byo committingo ano offenceo byo Shekharo Wankhedeo ando hiso Firmo haveobeenofoundoparkedoinotheobankoaccountsoofotheopetitioners.o Theo actiono ofo respondento no.2o ino freezingo thoseo accountso therefore,ocannotobeosaidotoobeoillegal."o o o o Referringotootheoaforesaidojudgments,olearnedoSeniorocounselo appearingoonobehalfoofotheorespondentsocontendsothatotheopoliceoofficerohaso ampleopowersounderoSectiono102oCr.P.C.otoodirectoseizureoofotheopropertyo wheno heo entertainso ao suspiciono witho regardo too theo modeo ando mannero ino whichosuchopropertyohasobeenoobtainedoandoitobeingoaopartoofotheocrime.oTheo explanationoofferedobyotheopetitionersoisoatobestoaodisputedoquestionoofofacto andosuchodefenceoisoyetotoobeoconsideredobyotheoinvestigatingoagency.oItoiso arguedo thato theo petitionerso may,o ifo soo advised,o approacho theo concernedo authoritiesoalongowithoexplanationoandoevidenceoandothatotheoinvestigatingo officeroshalloexamineotheoevidenceotoobeoreliedobyotheopetitionersotooestablisho theirobonaofideoorotoodemonstrateothatotheopropertyoinotheoaforesaidobanko accountso iso theiro self-acquiredo propertyo ando noto ao proceedo ofo crime.o Heo furtherocontendsothatosinceotheopetitionersoareonowoaccusedoinotheoaboveosaido caseoandohaveoalreadyoapproachedotheocompetentoHighoCourt,othereoisonoo reasonowhyotheopetitionersooughtonototooagitateotheopresentoissueobeforeothato courto itself.o Theo groundso pleadedo byo theo petitionerso thato theyo hado approachedothisoCourtosinceotheyowereonototheoaccusedoinotheosaidoFIRoando wereobeingoprejudicedobyoanoactowhichowasoanoabuseoofotheoauthorityobyotheo investigatingo officer,o doeso noto surviveo anyo further.o Ito wouldo thuso beo imperativeothatotheopetitionersoinvokeotheojurisdictionoofotheocompetentoHigho Courtowhereotheocauseoofoactionohasoarisenoandowhereotheoinvestigationoiso

beingoconducted.oInstitutionoofotheopresentopetitionobeforeoHighoCourtoofo differentoterritorialojudicatureoisomisconceived.oo o o Io haveo heardo theo learnedo Senioro counselo representingo theo respectiveopartiesoandohaveoalsoogoneothroughotheodocumentsoavailableoono theorecord.oo o o Itoisonotodisputedobyotheopetitionersothatotheyohaveosinceobeeno arraignedo aso accusedo ino theo aboveo saido FIRo ando thato theyo haveo alsoo approachedotheoHighoCourtoofoUttarakhandoatoNainitaloforoseekingoquashingo ofotheoaforesaidoFIRoagainstothem.oTheosaidowritopetitionohasoalreadyobeeno heardoono27.01.2023oandorespondentoNo.2ohasobeenorestrainedofromocarryingo outoanyocoerciveoactionoagainstotheopetitioners.oo oo Theo sameo nowo leadso too theo firsto objectiono aso regardso maintainabilityoofotheowritopetitionobeforeothisoCourt.oArticleo226o(2)oofotheo ConstitutionoofoIndiaoclearlyolayodownotheolegaloposition.ooAocourtowhereoao causeoofoactionoaroseowhollyooroinopartowouldohaveojurisdictionotooentertainoao writopetition.oo oo Theoquestionowhich,ohowever,oarisesoinotheopresentocaseoisoasotoo whethero ito wouldo beo appropriateo foro thiso Courto too exerciseo itso writo jurisdictionoinotheofactsoofotheopresentocaseoandotooissueodirectionsoespeciallyo whenotheopetitionersohaveoalsooapproachedotheoHighoCourtoofoUttarakhandoato NainitaloinowhoseoterritorialojurisdictionotheoFIRohasobeenoregistered.oTheo contentionoofotheopetitionersoatotheotimeoofoapproachingothisoCourtoatotheofirsto instanceowasothatotheyowereonotoaccusedoinotheosaidoFIRoandoasosuch,otheyo hadonoooccasionotooapproachotheoHighoCourtoofoUttarakhandoatoNainitaloando thatoquaothemotheocauseoofoactionoaroseoonlyoonotheoissuanceoofotheoorderoofo freezingo ofo theo banko accounts.o However,o theo saido contentiono paleso intoo

insignificanceoafterotheopetitionersohaveobeenoarraignedoasoaccusedoinotheo saidoFIR.oTheoorderoofofreezingoofotheobankoaccountsoisothusoaopartoofotheo ongoingoinvestigationoagainstotheopetitionersoherein.oTheo"causeoofoaction"o asoordinarilyounderstoodotoomeano"aosituationoorostateoofofactsothatoentitlesoao partyotoomaintainoanoactionoinoaoCourtogivingoriseotoooneooromoreobasisoforo suing,"oisothusotheoregistrationoofotheoFIRoandonototheoorderoofofreezingoofo bankoaccountsoforoassumingojurisdiction.oHence,oaopersonoisoexpectedotoo approacho theo Courto exercisingo territorialo jurisdictiono foro anyo substantialo reliefoandonotobeforeoaoforumowhereoimpactoofocauseoofoactionoisofelt.oSucho subsequentoCourtoshouldoordinarilyoexerciseoitsojurisdictionorestrictivelyoando ino caseso whereo theo persono aggrievedo cannoto seeko protectiono ofo hiso righto exceptoforoanoindulgenceofromotheoCourtowhereotheoconsequentialoimpactoiso beingo experienced.o Theo exerciseo ofo discretiono iso thuso limitedo ando ino exceptionalocircumstancesowhereonon-exerciseoofopowerowouldodefeatotheo endsoofojusticeoandowouldobeodenialotooconstitutionaloremedies.ooooo oo Itowouldonowobeorelevantotooreferotoocertainoprovisionsoofotheo CodeoofoCriminaloProcedureowhichoareoasounder:- "102.oPoweroofopoliceoofficerotooseizeocertainoproperty.—o o

(1)oAnyopoliceoofficeromayoseizeoanyopropertyowhichomayobeo allegedo oro suspectedo too haveo beeno stolen,o oro whicho mayo beo foundo undero circumstanceso whicho createo suspiciono ofo theo commissionoofoanyooffence.oo o

(2)oSuchopoliceoofficer,oifosubordinateotootheoofficeroinochargeoofo ao policeo station,o shallo forthwitho reporto theo seizureo too thato officer.oo o

(3)o Everyo policeo officero actingo undero sub-sectiono (1)o shallo forthwitho reporto theo seizureo too theo Magistrateo havingo jurisdictiono ando whereo theo propertyo seizedo iso sucho thato ito cannoto beo convenientlyo transportedo too theo Court,o oro whereo thereoisodifficultyoinosecuringoproperoaccommodationoforotheo custodyoofosuchoproperty,oorowhereotheocontinuedoretentionoofo theopropertyoinopoliceocustodyomayonotobeoconsideredonecessaryo forotheopurposeoofoinvestigation,oheomayogiveocustodyothereofotoo anyopersonoonohisoexecutingoaobondoundertakingotooproduceotheo propertyobeforeotheoCourtoasoandowhenorequiredoandotoogiveo effectotootheofurtheroordersoofotheoCourtoasotootheodisposaloofotheo same:o o Providedothatowhereotheopropertyoseizedounderosub-sectiono(1)o iso subjecto too speedyo ando naturalo decayo ando ifo theo persono entitledo too theo possessiono ofo sucho propertyo iso unknowno oro absentoandotheovalueoofosuchopropertyoisolessothanofiveohundredo rupees,oitomayoforthwithobeosoldobyoauctionounderotheoordersoofo theoSuperintendentoofoPoliceoandotheoprovisionsoofosectionso457o ando458oshall,oasonearlyoasomayobeopracticable,oapplyotootheoneto proceedsoofosuchosale.o o o o o xxxo xxxo xxxo o

177.oOrdinaryoplaceoofoinquiryoandotrial.—Everyooffenceoshallo ordinarilyobeoinquiredointooandotriedobyoaoCourtowithinowhoseo localojurisdictionoitowasocommitted."o o o o ItoisoevidentofromoperusaloofotheoaforesaidoprovisionsoofoSectiono 102oCr.P.C.,othatoaopoliceoofficeromayoseizeoanyopropertyowhichomayobeo allegedo oro suspectedo too haveo beeno stolen.o Theo seizureo iso requiredo too beo reportedotootheoMagistrateohavingojurisdictionoandotheopoliceoofficeromayo giveo custodyo ofo sucho propertyo too theo persono ono hiso executingo theo

bond/undertakingotooproduceotheopropertyobeforeotheoCourtoasoandowheno requiredo ando too giveo effecto too theo furthero orderso ofo theo Courto aso too theo disposalo ofo theo same.o Furthero Sectiono 177o Cr.P.C.,o defineso theo ordinaryo placeoofoinquiryoandotrial.oHence,oanooffenceoisotoobeoordinarilyotriedobyoao Courtowithinowhoseolocalojurisdictionoitoisocommitted.ooTheojurisdictionoino criminalolawoisothusoordinarilyogovernedobyotheocommissionoofooffenceoando notojustoanyocauseoofoaction.oHence,oirrespectiveoofotheocauseoofoaction,otheo jurisdictionoforoadjudicationoquaotheooffenceowouldovestoonlyoinotheoCourto whereotheooffenceoisocommitted.oSuchofixingoofoterritorialoboundariesoshouldo ordinarilyobeorespectedobyoCourtsoandotheyoshouldoexerciseojudicialorestrainto whenoexerciseoofojurisdictionoisolikelyotoobeoviewedoasoaojudicialoover-reach.ooo Theopetitionersohaveonumerousoalternativeoremediesoavailableotoothemoi.e.otoo approacho theo concernedo Policeo Officero ando too furnisho theo documento ino supportoofotheiroclaimotooseekode-freezingoofotheoaforesaidobankoaccountsooro too moveo ano appropriateo applicationo foro beingo permittedo too operateo theo aforesaido banko accountso ono furnishingo ofo bonds/undertakingso and/oro furnishingo ofo anyo sucho conditionso aso mayo beo soo imposed.o Sucho ano applicationo mayo alsoo beo movedo beforeo theo competento Illaquao Magistrateo exercisingojurisdictionooverotheooffence.oFurther,otheopetitionersomayoalsoo moveo ano applicationo beforeo theo Higho Courto withino whoseo territorialo jurisdiction,o theo offenceo hasobeeno committed.o Hence,o ito wouldo beoino theo interesto ofo judicialo disciplineo ando proprietyo thato sucho persono ordinarilyo approachesotheoCourtoexercisingoterritorialojurisdictionooverowhereotheocauseo ofoactionohasoaccruedoandoseekoredressaloofohis/herogrievancesofromosucho

oo o Anyo sucho prayer/petitiono byo anyo othero Higho Courto mayo beo entertainedo whereo theo petitionerso demonstrateo emergento circumstanceso warrantingo ano immediateo actiono failingo whicho theiro righto too seeko constitutionalo remedieso wouldo beo defeatedo ando ito wouldo giveo riseo too ano irreparableolossoandoinjury.oInosuchogivenocircumstances,otheoHighoCourto whereo theo petitionerso suffero theo prejudice/consequenceso ofo theo causeo ofo actionomayoalsooentertainoanoappropriateopetitionoandomayograntosuchoreliefo asoisoinofurtheranceoofotheointerestsoofojusticeoandotooenableotheopetitionersotoo takeorecourseotooappropriateoremediesoinolawoandotooapproachotheocompetento Courto ofo judicatureo foro protectiono ofo theiro rights.o Sucho compellingo circumstances,ohowever,odoonotoexistoinotheopresentocaseoasopetitionersohaveo alreadyoapproachedoHighoCourtoofoUttarakhand,ohence,othisoCourtowouldo thusonotogoointootheomeritsoofoissueoasotootheoamountoofomoneyotransferredotoo theo accountso ofo theo petitionerso and/oro apportionmento ofo theo amounto allegedlyoreceivedobyofatheroofotheopetitioners.oo o o Inosoofaroasotheopleaoofotheopetitionersoaboutomeritsoofotheocaseo areoconcerned,oitowouldonotobeoappropriateoforothisoCourtotoobeocommentingo onotheosameoespeciallyowhenotheowritoisonotobeingoentertainedoforotheoreasonso thatotheopetitionersoshouldoapproachotheocompetentoCourt/HighoCourto o o Accordingly,otheopresentopetitionoisodismissed,oatothisostage.oo o o Theopetitionersoare,ohowever,oatolibertyotootakeorecourseotootheo remedieso availableo too themo aso pero lawo beforeo theo Courto ofo competento jurisdiction.oooooooooo o Marcho17,o2023o o o oooooooooo(VINODoS.oBHARDWAJ)o rajoarorao o o o oooooo o ooooooJUDGEo o o Whetherospeaking/reasonedoo :oYes/Noo Whetheroreportableoo o :oYes/Noo