{"id":313213,"date":"2024-02-06T12:00:59","date_gmt":"2024-02-06T06:30:59","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=313213"},"modified":"2024-02-09T09:38:14","modified_gmt":"2024-02-09T04:08:14","slug":"cal-hc-sets-aside-magistrates-orders-emphasises-mandatory-compliance-with-section-202-of-crpc-scc-blog","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/02\/06\/cal-hc-sets-aside-magistrates-orders-emphasises-mandatory-compliance-with-section-202-of-crpc-scc-blog\/","title":{"rendered":"Securities Misappropriation | Calcutta High Court sets aside Magistrate\u2019s orders on non-compliance of mandatory provision of Section 202 CrPC"},"content":{"rendered":"
\n

Calcutta High Court:<\/span> In a criminal revision seeking quashment of entire proceedings along with the complaint due to failure on part of the Magistrate to conduct an inquiry under Section 202<\/a> of the Criminal Procedure Code, 1973<\/a> (CrPC) before issuing process against accused persons residing outside his jurisdiction, a single-judge bench comprising of Rai Chattopadhyay,* J.<\/span>, emphasised on the mandatory nature of Section 202<\/a> of the CrPC<\/a> and set aside the orders of the Magistrate, directing the case to be remanded for due compliance with the law.<\/p>\n

Brief Facts<\/p>\n

In the instant matter, the complainant responded to an advertisement in ‘The Statesman’ in 1989 for investment in M\/s. Everest and an unsecured loan from Sencose. An agreement was executed in 1991 for investments by the complainant with the accused companies. The complainant alleged deceitful inducement and illegal transfer of hypothecated fixed deposits and company shares by the accused companies, causing financial loss and misappropriation. The petitioners sought quashing of the entire proceedings along with the complaint, alleging misappropriation of valuable securities and illegal transfer of funds by the accused companies and their directors. The criminal revision cases are heard together challenging the complaint dated 31-12-2009, registered as complaint case under Sections 420,467,468 and 471<\/a> of the Penal Code, 1860<\/a> (IPC).<\/p>\n

Moot Point<\/p>\n

    \n
  1. \n

    Whether the Magistrate erred in not conducting an inquiry under Section 202<\/a> of the CrPC<\/a> before issuing process against the accused residing outside the jurisdiction?<\/p>\n<\/li>\n<\/ol>\n

    Parties’ Arguments<\/p>\n

    The petitioners argued that the Magistrate failed to comply with Section 202<\/a> of the CrPC<\/a>, rendering the orders illegal. The complainant-opposite party contended that the Magistrate had adequately inquired into the genuineness of the complaint, justifying the issuance of process.<\/p>\n

    Court’s Assessment<\/p>\n

    The Court reviewed the orders passed by the Magistrate and stated that explicit compliance with Section 202 is not evident. The Court stated that “the necessary requirement for the Magistrate to comply with the said provisions under Section 202<\/a> of the CrPC<\/a> would be his satisfaction and finding it fit regarding the necessity to cause an enquiry as provided therein and mandatorily in a case, where the accused is residing beyond the area of territorial jurisdiction of the said Magistrate.”<\/span> Citing precedents, the Court emphasised on the mandatory nature of Section 202<\/a> of the CrPC<\/a> in cases where the accused reside beyond the Magistrate’s jurisdiction.<\/p>\n

    The Court stated that “when the legislature provides for a mandate for the Magistrate to postpone the process for the purpose of causing inquiry and with a specific purpose, as written herein above, it is incumbent that the orders of the Magistrate explicitly show that the statutorily provided and mandated process has been undertaken by him. It is also expected that the Magistrate records his finding of the inquiry vis-à-vis the purpose of the said provision of law”<\/span> and anything otherwise done by the Magistrate will not be considered as due exercise of the power vested in law and would render “Magistrate’s action as dehors the law and not sustainable.”<\/span> The Court held that the orders of the Magistrate suffered from illegality for not causing an inquiry under Section 202<\/a> of the CrPC<\/a> and order directing issuance of summons and subsequent orders are unsustainable in the eye of law.<\/p>\n

    Court’s Decision<\/p>\n

    The Court set aside the orders directing the issuance of summons, remanding the case to the Magistrate for due compliance with the law. The Court directed the Magistrate to conduct an inquiry under Section 202<\/a> of the CrPC<\/a> before proceeding with the case.<\/p>\n

    [Aloka Gooptu<\/span> v. State of W.B.<\/span>, 2024 SCC OnLine Cal 943<\/a>, order dated 02-02-2024<\/span>]<\/p>\n

    *Judgment by Justice Rai Chattopadhyay<\/span><\/strong><\/p>\n\n

    Advocates who appeared in this case :<\/p>\n

    Mr. Ayan Bhattacherjee, Mr Ayan Chakraborty, Mr. Sudipta Mahapatra, Counsel for the Petitioners<\/p>\n

    Ms. Kakali Samajpaty, Ms. Sangita Jangra, Mr. Subhranil Ray, Counsel for the Opposite Party 2<\/p>\n

    Buy Penal Code, 1860   HERE<\/a><\/h3>\n

    \"penal<\/a><\/p>\n

    Buy Code of Criminal Procedure, 1973  HERE<\/a><\/h3>\n

    \"Code<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    “The compliance of provision under Section 202 of the CrPC, 1973, is compulsory and unavoidable for a Magistrate before issuance of summons in case of alleged offender who resides outside his territorial jurisdiction.”<\/p>\n","protected":false},"author":67514,"featured_media":290502,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[2689,65082,63087,2538,65080,65081,12161],"class_list":["post-313213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-Calcutta_High_Court","tag-issue-process","tag-justice-rai-chattopadhyay","tag-Magistrate","tag-mandatory-compliance","tag-section-202-of-crpc","tag-territorial-jurisdiction"],"yoast_head":"\nCalcutta High Court sets aside Magistrate's orders; emphasises mandatory compliance with Section 202 of CrPC | SCC 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process against accused residing beyond his area of jurisdiction only after inquiry as contemplated under S. 202 CrPC","author":"Bhumika Indulia","date":"September 2, 2019","format":false,"excerpt":"Bombay High Court:\u00a0S.S Shinde, J. allowed a criminal application to the order passed by the Judicial Magistrate (First Class) issuing process against the applicant for the offences punishable under Section 504 (intentional insult with intent to provoke breach of the peace) 506 (punishment for criminal intimidation) of the Penal Code.\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, 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