BANGARU LAXMAN Vs STATE TR.C.B.I
Bench: ASOK KUMAR GANGULY,GYAN SUDHA MISRA
Case number: Crl.A. No.-002164-002165 / 2011
Diary number: 34492 / 2010
Advocates: UGRA SHANKAR PRASAD Vs
PROMILA
REPORTABLE IN THE SUPREME COURT OF INDIA CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NOS.2164-2165 OF 2011 (Arising out of SLP (Crl.) Nos.3834-35/2011)
Bangaru Laxman .....Appellant(s)
- Versus -
State (through CBI) & another ....Respondent(s)
J U D G M E N T
GANGULY, J.
1.Leave granted.
2.The challenge in these appeals is to an order dated
17.7.2006 by which the learned Special Judge granted
pardon to respondent No. 2-Shri T. Satyamurty on the
condition that the said respondent shall make full
disclosure of the facts and circumstances relating
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to the offence committed by him in conspiracy with
the appellant and one Shri N. Umamaheshwar Raju.
3.The charge-sheet in this case was filed next day
i.e. 18.7.2006 against the appellant and Shri N.
Umamaheshwar Raju. The said order granting pardon
was challenged before the High Court but the said
challenge was turned down by the High Court by its
order dated 30.8.2010. The main argument by the
appellant in this case is that pardon could not be
granted by the Special Court prior to the filing of
the charge-sheet.
4.Certain facts which are relevant to decide this
controversy may be recorded.
5.On 21.4.2005 the confessional statement of the
respondent no.2 was recorded under Section 164
Cr.P.C. The said confessional statement of
respondent No.2 recorded his involvement and the 2
involvement of the appellant in the incident. On
considering the said statement, the prosecution
formed an opinion that the evidence of PW-2 is of
great value to the prosecution and thereafter on
3.7.2006 the prosecution moved an application before
the Court of the Special Judge for grant of pardon
to respondent No.2 so that respondent No.2 could be
examined as an approver in the case against the
appellant.
6.Thereafter, by an order dated 17.7.2006, pardon was
granted by the Special Court.
7.Mr. Sunil Kumar, learned counsel for the appellant
mainly assailed the order granting pardon, inter-
alia, on the ground that the Special Court has no
jurisdiction and authority to do so before the
filing of the charge sheet.
8.Learned counsel has of course raised an ancillary
grievance that at the stage of granting pardon the
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Court had already formed its opinion on the guilt or
otherwise of the appellant rendering the trial a
mere mockery. However, his main argument was focused
on the jurisdiction of the Special Court to grant
pardon prior to the filing of the charge sheet.
9.In support of his submission, the learned counsel
referred to the provisions of Sections 306 and 307
of the Code of Criminal Procedure (hereinafter
referred to as the ‘Code’) and also referred to
Section 5(2) of the Prevention of Corruption Act,
1988(hereinafter referred to as the ‘P.C.’ Act)
10. For proper appreciation of the questions involved
in this case, those provisions are set out below:
“306. Tender of pardon to accomplice. (1) With a view to obtaining the evidence of any person supposed to have been directly or indirectly concerned in or privy to an offence to which this section applies, the Chief Judicial Magistrate or a Metropolitan Magistrate at any stage of the investigation or inquiry into, or the trial of, the offence, and the Magistrate of the first class inquiring into or trying the offence, at any stage of the inquiry or trial,
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may tender a pardon to such person on condition of his making a full and true dis-closure of the whole of the circumstances within his knowledge relative to the offence and to every other person concerned, whether as principal or abettor, in the commission thereof.
(2) This section applies to- (a) any offence triable exclusively by the Court of Session or by the Court of a Special Judge appointed under the Criminal Law Amendment Act, 1952 (46 of 1952); (b)
any offence punishable with imprisonment which may extend to seven years or with a more severe sentence.
(3) Every Magistrate who tenders a pardon under sub-section (1) shall record-
(a) his reasons for so doing; (b) whether the tender was or was not
accepted by the person to whom it was made,
and shall, on application made by the accused, furnish him with a copy of such record free of cost. (4) Every person accepting a tender of pardon made under sub- section (1)-
(a) shall be examined as a witness in the Court of the Magistrate taking cognizance of the offence and in the subsequent trial, if any;
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(b) shall, unless he is already on bail, be detained in custody until the termination of the trial.
(5) Where a person has accepted a tender of pardon made under sub-section (1) and has been examined under sub-section (4), the Magistrate taking cognizance of the offence shall, without making any further inquiry in the case,-
(a) commit it for trial- (i) to the Court of Session if the offence is triable exclusively by that Court or if the Magistrate taking cognizance is the Chief Judicial Magistrate; (ii) to a Court of Special Judge appointed under the Criminal Law Amendment Act, 1952 (46 of 1952), if the offence is triable exclusively by that Court;
(b) in any other case, make over the case to the Chief Judicial Magistrate who shall try the case himself.
307. Power to direct tender of pardon. At any time after commitment of a case but before judgment is passed, the Court to which the commitment is made may, with a view to obtaining at the trial the evidence of any person supposed to have been directly or indirectly concerned in, or privy to, any such offence, tender a pardon on the same condition to such person.
S.5(2) of P.C. Act: 6
S.5(2) A special Judge may, with a view to obtaining the evidence of any person supposed to have been directly or indirectly concerned in or privy to, an offence, tender a pardon to such person on condition of his making a full and true disclosure of the whole circumstances within his knowledge relating to the offence and to every other person concerned, whether as principal or abettor, in the commission thereof and any pardon so tendered shall, for the purposes of sub-sections (1) to (5) of section 308 of the Code of Criminal Procedure, 1973 (2 of 1974), be deemed to have been tendered under section 307 of that Code.”
11. Adverting to those provisions, the learned counsel
submitted that power to grant pardon is not an
inherent power of the Court. The said power has to
be specifically conferred and the learned counsel
submitted that power under Section 306 of the Code
cannot be exercised by a Special Judge under the
P.C. Act.
12. Learned counsel for the State on the other hand
submitted that the Court of Special Judge under the
P.C. Act is a Court of original jurisdiction.
Section 5 of the P.C. Act clearly enables a Special
Judge with the power to grant pardon and he further 7
submitted that Sub-section 3 of Section 5 of the
P.C. Act saves the provision of Sub-section 2 of
Section 5 and that Section 5(2) must be read with
Section 5(3). Sub-section (3) of Section 5 of the
P.C. Act is also set out below:
“5(3) Save as provided in sub-sections (1) or sub-section (2), the provisions of the Code of Criminal Procedure, 1973 (2 of 1974), shall, so far as they are not inconsistent with this Act, apply to the proceedings before a special Judge; and for purposes of the said provisions, the Court of the special Judge shall be deemed to be a Court of Session and the person conducting a prosecution before a special Judge shall be deemed to be a public prosecutor.”
13. It is further submitted by the learned counsel for
the State that the power of a Special Judge to grant
pardon under Section 5(2) of the Act is an
unfettered power and the deeming clause has been
employed only for the purpose of sub-sections (1) to
(5) of section 308 of the code. Sub-sections 1 to 5
of Section 308 run as follows:
“308. Trial of person not complying with conditions of pardon. (1) Where, in regard to a person who has accepted a tender of pardon made under section 306 or section 307, the Public Prosecutor certifies that in his opinion such
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person has, either by wilfully concealing anything essential or by giving false evidence, not complied with the condition on which the tender was made, such person may be tried for the offence in respect of which the pardon was so tendered or for any other offence of which he appears to have been guilty in connection with the same matter, and also for the offence of giving false evidence:
Provided that such person shall not be tried jointly with any of the other accused:
Provided further that such person shall not be tried for the offence of giving false evidence except with the sanction of the High Court, and nothing contained in section 195 or section 340 shall apply to that offence.
(2) Any statement made by such person accepting the tender of pardon and recorded by a Magistrate under section 164 or by a Court under sub-section (4) of section 306 may be given in evidence against him at such trial.
(3) At such trial, the accused shall be entitled to plead that he has complied with the condition upon which such tender was made, in which case it shall be for the prosecution to prove that the condition has no been complied with.
(4) At such trial, the Court shall- (a) if it is a Court of Session,
before the charge is read out an explained to the accused; (b)
if it is the Court of a Magistrate, before the evidence of the witnesses for the prosecution is taken,
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ask the accused whether he pleads that he has complied with the conditions on which the tender of pardon was made.
(5) If the accused does so plead, the Court shall record the plea and proceed with the trial and it shall, before passing judgment in the case, find whether or not the accused has complied with the conditions of the pardon, and, if it finds that he has so complied, it shall, notwithstanding anything contained in this Code, pass judgment of acquittal.”
14. Mr. Sunil Kumar, learned counsel for the appellant
in support of his submissions relied on several
decisions which are considered by this Court now.
15. He relied on a decision of this Court in the case of
Lt. Commander Pascal Fernandes vs. State of Maharashtra and Ors.- AIR 1968 SC 594.
16. Learned counsel for the appellant also relied on the
decision of this Court in A.R. Antulay vs. Ramdas Sriniwas Nayak and Anr. – (1984) 2 SCC 500 in order to contend that the procedure for granting pardon
which has been indicated in Section 5(2) read with
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Section 307 of the Code must be followed namely that
the Special Judge being a Court of Sessions can only
grant pardon after the commencement of the trial.
But in the instant case pardon has been granted at
the stage of investigation. Therefore, pardon has
not been granted, according to the learned counsel
for the appellant, after following the proper
procedure.
17. Learned counsel relying on para 22 in Antulay’s case (supra) urged that when the procedure has been
provided then everything has to be done following
the said procedure and other modes of performance
are necessarily forbidden.
18. Learned counsel also referred to paragraph 27 at
page 524 of the report in Antulay (supra) to point out that the Special Judge is a Court of original
jurisdiction and the trial of offences before him
shall follow the procedure in the Code for trial of
warrant cases by the Magistrate. Learned counsel 1
also submitted that pardon is to be granted by the
Special Judge, under provision of Section 307 of the
Code which is corresponding to Section 308 of the
old Code.
19. Learned counsel also relied on a decision of this
Court in State of U.P. vs. Singhara Singh – AIR 1964 SC 358 (para 8 at page 361 of the report) in order
to contend that the principles in Taylor vs. Taylor (1876) 1 Ch. D. 426 must be followed in the instant
case. The said principle stipulates that where a
statute required the doing of a certain thing in a
certain way, the thing must be done in that way or
not at all.
20. Learned counsel also referred to the decision in the
case of Queen Empress vs. Batera & Ors. reported in Criminal Judgments No.3 (Case No. 2838 of 1897)
where the Court held that provision of Section 337
of the old Code must be strictly construed.
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21. We are unable to appreciate the aforesaid
contentions raised by the learned counsel. It goes
without saying that under Section 5(2) of the P.C.
Act the power of the Special Judge to grant pardon
is an unfettered power subject to stipulation made
in the Section itself. Such power can be exercised
at any stage and there is no stipulation that power
can be exercised by the Special Judge only at the
stage of trial as urged by the appellant’s counsel.
The deeming clause which has been introduced in
Section 5(2) is for a very limited purpose mentioned
in Section 5(2) of the P.C. Act. Sub-Sections 1 to 5
of Section 308 have already been set out above and
it is clear therefrom that the said provisions have
been enacted for a different purpose namely for
holding trial of a person for not complying with the
conditions of pardon.
22. It is well known that a deeming provision is a legal
fiction and an admission of the non-existence of the
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fact deemed. (See M/s. J.K. Cotton Spinning and Weaving Mills Ltd. and another vs. Union of India and others - AIR 1988 SC 191 at 202). Therefore, while interpreting a provision creating a legal
fiction, the Court has to ascertain the purpose for
which the fiction is created.
23. The law on this aspect has been very neatly
summed-up by Lord Justice James in Ex Parte Walton,
in re Levy (1881) 17 Ch. D. 746. At page 756 the
learned Judge formulated as follows:
“…When a statute enacts that something shall be deemed to have been done, which in fact and truth was not done, the Court is entitled and bound to ascertain for what purposes and between what persons the statutory fiction is to be resorted to….”
24. The aforesaid formulation has been approved by
Constitution Bench of this Court in State of Travancore Cochin and others vs. Shanmugha Vilas Cashewnut Factory, Quilon reported in AIR 1953 SC 333. At page 343 of the report the aforesaid
principles have been referred to by this Court along 1
with the various other decisions and which are set
out:
““When a statute enacts that something shall be deemed to have been done, which in fact and truth was not done, the Court is entitled and bound to ascertain for what purposes and between what persons the statutory fiction is to be resorted to….
The above observations were quoted with approval by Lord Cairns and Lord Blackburn in Arthur Hill v. East and West India Dock Co., (1884) 9 A.C. 448. Lord Blackburn went on to add at page 458:
"I think the words here 'shall be deemed to have surrendered' ........ mean, shall be surrendered so far as is necessary to effectuate the purposes of the Act and no further;.........."
(emphasis added)
25. Following the aforesaid well-settled principle, as
we must, we hold that the deeming provision
introduced in Section 5(2) of the P.C. Act is not
for fettering the power of the Special Judge to
grant pardon in terms of Section 306 of the Code.
The purpose of introducing the deeming provision in
Section 5(2) of the P.C. Act is manifest from the
text of Section 5(2), namely, the same is introduced
only for the purposes of sub-sections 1 to 5 of
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Section 308 of the Code and it is only for the said
purpose that the sanction is deemed to have been
tendered under Section 307 of the Code.
26. If this Court accepts the contention of learned
counsel for the appellant that the Special Judge
under the P.C. Act has no power to grant the pardon
under Section 306 of the Code in view of the deeming
clause under Section 5(2) of the P.C. Act, that will
amount to reading Section 5(2) of P.C. Act in a
manner which is revolting to reason and by doing
violence to the plain words of the statutes.
27. The contention of the learned counsel for the
appellant cannot be accepted for other reasons also
which are discussed hereinbelow.
28. The decision in Pascal (supra) was rendered on an interpretation of Section 8(2) of Criminal Law
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Amendment Act, 1952. Section 8(2) of Criminal Law
Amendment Act, 1952 is set out below:
“(2)A Special Judge may, with a view to obtaining the evidence of any person supposed to have been directly or indirectly concerned in, or privy to, an offence, tender a pardon to such person on condition of his making a full and true disclosure of the whole circumstances within his knowledge relating to the offence and to every other person concerned whether as principal or abettor, in the commission thereof; and any parson so tendered shall, for the purposes of Secs. 339 and 339-A of the Code of Criminal Procedure, 1898, (5 of 1898) be deemed to have been tendered under Sec. 338 of that Code.”
29. Section 8(2) of Criminal Law Amendment Act, 1952
is virtually in parimateria with Section 5(2) of the
P.C. Act
30. The said decision in Pascal (supra) was rendered when the old Criminal Procedure Code of 1898 was in
force. After the enactment of the new Code of 1973,
Sections 337 to 339 of the old Code were substituted
by the Criminal Law Amendment Act and Sections 306
to 308 of the present Code conferred powers to grant
pardon on the Magistrate and also on the Court to 1
which commitment is made. The decision in Pascal (supra) was rendered in the context of a
substantially different statutory provision. Section
337 of the old Code is different from Section 306 of
the present Code. Specially Section 306(2)(a) which
has been quoted above was not there in Section 337
of 1898 Code. Section 306(2)(a) clearly makes
Section 306 applicable to the Court of Special Judge
under the P.C. Act. Such a conclusion is inescapable
on a conjoint reading of Section 306(2)(a) with
Section 26 of the P.C. Act, which is set out below:
26. Special Judges appointed under Act 46 of 1952 to be special Judges appointed under this Act.- Every special Judge appointed under the Criminal Law Amendment Act, 1952, for any area or areas and is holding office on the commencement of this Act shall be deemed to be a special Judge appointed under section 3 of this Act for that area or areas and, accordingly, on and from such commencement, every such Judge shall continue to deal with all the proceedings pending before him on such commencement in accordance with the provisions of this Act.”
31. Apart from that, the questions which fell for
consideration in Pascal (supra) are: (a) the difference between Sections 337 and 338 of the old
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Code and Section 8(2) of the Criminal Law Amendment
Act (b) that the power of Special Judge in tendering
pardon under Section 8(2) of the Criminal Law
Amendment Act is limited to an application by the
prosecution and the Special Judge cannot act suo
motu (c) the further question was that the powers of
the Special Judge under Section 8(2) are
circumscribed by considerations under Section 540 of
the old Code and (d) the further contention was that
Special Judge had not exercised his discretion
properly in the case.
32. None of the above considerations are relevant in
the present case. Therefore, the said decision does
not render any assistance to the appellant in
connection with the points which have been urged on
his behalf.
33. The learned counsel for the State relied on a three
Judge Bench decision of this Court in the case of
Harshad S. Mehta and others vs. State of Maharashtra 1
reported in (2001) 8 SCC 257. In the case of Harshad Mehta (supra) this Court was considering the Special Court (Trial of Offences Relating to Transactions in
Securities) Act and it is admitted that the Court
under the aforesaid Act is like the Special Court
under P.C. Act. Both are Courts of Original Criminal
Jurisdiction. In paragraph 21 of the judgment in
Harshad Mehta (supra) this Court held as follows:
“21. We have no difficulty in accepting the contention that the Special Court, per se, is not a Magistrate falling in any of the categories of Magistrates as enumerated in Section 306(1) and also that it is not a court to which the commitment of a case is made. But, it does not necessarily follow therefrom that the power to tender pardon under Sections 306 and 307 has not been conferred on the Special Court.”
34. In coming to the conclusion that a Special Court is
a court of original criminal jurisdiction, this
Court in Harshad Mehta (supra) relied on the law laid down by the Constitution Bench of this Court in
Antulay’s (supra) in which the Court was considering the provisions of the P.C. Act.
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35. Relying on the ratio in Antulay (supra), where Special Judge has been considered a court of
original criminal jurisdiction this Court held in
Harshad Mehta (supra) that in order to make the said Court functionally oriented some powers are
conferred by the statute setting it up and except
those powers which are specifically denied, it has
to function as a court of original criminal
jurisdiction not being hidebound by the
terminological status description of Magistrates or
a Court of Session. Under the Code, it will enjoy
all the powers which a court of original criminal
jurisdiction enjoys save and except the ones which
are specifically denied. (see para 22, page 269 of
the report)
36. The Court in Harshad Mehta (supra) also considered the decision of this Court in Pascal (supra). After considering the decision in Pascal (supra), this Court in Harshad Mehta (supra) came to the
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conclusion that the Special Court enjoys all powers
which a court of original criminal jurisdiction
enjoys whether of a Magistrate or as a Court of
Session, save and except the one specifically
denied. (See para 50 page 281).
37. The conclusion reached by three Judge Bench in
Harshad Mehta (supra) after considering the decision in Pascal (supra) is as follows:
“62. Our conclusion, therefore, is that the Special Court established under the Act is a court of exclusive jurisdiction. Sections 6 and 7 confer on that court wide powers. It is a court of original criminal jurisdiction and has all the powers of such a court under the Code including those of Sections 306 to 308.”
38. If we may note, the Court reached the aforesaid
conclusion in Harshad Mehta (supra) even though under the aforesaid Act there is no provision like
Section 5(2) in the P.C. Act.
39. If we follow the ratio of Harshad Mehta (supra) to the interpretation of Section 5(2) of the P.C. Act,
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it is clear that the power to grant pardon under
Section 306 of the Code has not been specifically
denied. If it is not specifically denied, then as a
court of original criminal jurisdiction the Special
Court under P.C. Act has the power to grant pardon
under Section 306 of the present Code. Any different
interpretation will be contrary to the plain words
of Section 306 of the Code and also the law laid
down by this Court in Harshad Mehta (supra) on the principles decided in Antulay (supra).
40. Reference in this connection can also be made to the
decision of the Supreme Court in the case of State
of Tamil Nadu vs. V. Krishnaswami Naidu and another,
reported in (1979) 4 SCC 5. In that case the
question was whether the Special Judge has the power
of remand. This court, by referring to Section 3(32)
of the General Clauses Act, 1897 defining a
Magistrate, held that Magistrate will include a
Special Judge. Therefore, a Special Judge shall be a
Magistrate for the purposes of Section 167 of the
Code even though the word ‘Special Judge’ is not
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mentioned in Section 167 (see para 7, pg. 8 of the
report).
41. It is therefore clear that, on the ratio of V. Krishnaswami (supra), the Special Judge has been given a very important magisterial function, namely
the power of remand. Compared to that, the power to
grant pardon is an ancillary power. Therefore under
the scheme of the Code, read with Section 5(2) of
the PC Act, and in light of the consistent view of
this Court, a Special Judge will include a
magistrate. On the same parity of reasoning a
Special Judge, unless specifically denied, will have
the power to grant pardon. Here there is no question
of specific denial, rather Section 5(2) of the P.C.
Act clearly confers this power subject to the
deeming clause, the limited purpose of which has
been discussed above.
42. Thus, on a harmonious reading of Section 5(2) of
the P.C. Act with the provisions of Section 306, 2
specially Section 306(2)(a) of the Code and Section
26 of the P.C. Act, this Court is of the opinion
that the Special Judge under the P.C. Act, while
trying offences, has the dual power of the Session
Judge as well as that of a Magistrate. Such a
Special Judge conducts the proceedings under the
court both prior to the filing of charge sheet as
well as after the filing of charge sheet, for
holding the trial.
43. It has already been held by this Court that the
Special Judge is fully vested with the powers of
remand. The power of granting remand is very wide
power compared to the power of granting pardon.
Since this Court has already held that the Special
Court is clothed with the magisterial power of
remand, thus in the absence of a contrary provision,
this Court cannot hold that power to grant pardon at
the stage of investigation can be denied to the
Special Court.
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44. In view of the discussion made above, this Court
is of the opinion that power of granting pardon,
prior to the filing of the charge sheet, is within
the domain of judicial discretion of the Special
Judge before whom such a prayer is made, as in the
instant case by the prosecution.
45. Any other conclusion would be detrimental to the
administration of justice, in as much as, the power
to grant pardon is contemplated in situations where
serious offence is alleged to have been committed by
several persons and with the aid of the evidence of
the person, who had been granted pardon, the
offence committed may be proved. The basis of
exercise of this power is not to judge the extent of
culpability of the persons to whom the pardon is
tendered. The main purpose is to prevent failure of
justice by allowing the offender to escape from a
lack of evidence.
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46. Therefore, this Court does not find any merit in
the contention urged on behalf of the Appellant.
However, this Court makes it clear that in the
course of holding trial, the Special Judge will not
be in any way influenced by the observations in the
order granting pardon but will act independently of
the same. In this case, the Special Judge who
granted pardon is not holding the trial. Therefore,
at the time of holding trial, it is directed that
the Special Judge will independently apply his mind
to the facts of the case in arriving at his
conclusions.
47. With this direction the appeals, being without
merit, are dismissed.
.......................J. (ASOK KUMAR GANGULY)
.......................J. New Delhi (GYAN SUDHA MISRA) November 22, 2011
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