The Hon’ble Delhi High Court, while hearing a writ petition seeking to quash the complaint filed by the Serious Fraud Investigation Officer (‘SFIO’) and to restrain it from carrying out any further investigation, held that the SFIO is not barred from investigating an offence under IPC.
Pursuant to an investigation into affairs of some companies, SFIO filed a complaint against a company 'B', wherein, petitioner-company secretary of 'B' was arrayed as an accused for commission of offences of fraud and cheating under Indian Penal Code.
In pursuance to the complaint by the SFIO Special Judge took cognizance on the said complaint and issued summons to the petitioner.
The Hon’ble High Court on a petition under Article 226, Court took note that section 4(2) of the Cr.P.C. provides that investigation into offences under other statutes, like the Companies Act, shall be done in accordance with the Cr.P.C. unless the statute provides for otherwise. Further, Section 212(15) provides that an investigation report filed before the Special Court shall be treated as a report filed by a police officer under section 173 of the Cr.P.C. Moreover, under section 436(2) power has been given to the Special Court to try offences other than those under the Companies Act.
Taking note of the of the above provisions the Hon’ble Court opined that if the report which is filed by SFIO is to be treated as a police report under section 173(2) of the CrPC, then such officer also is to be considered to be vested with powers of an officer in charge of a police station. The said position is further fortified by the fact that if power has been given to the Special Court under section 436(2) to try offences other than those under the Companies Act, then the power of the SFIO to investigate into such offences cannot be restricted.
Hence, the Hon’ble High Court held that from a conjoint and harmonious reading of the aforesaid provisions of the Cr.P.C and the Companies Act, it cannot be said that the SFIO is barred from investigating an offence under the IPC. The Hon’ble Court further stated that if during course of investigation under the Companies Act, the concerned Investigating Officer comes across commission of offences punishable under the IPC or any other law relating to the transactions being investigated, then the same cannot give rise to distinct proceedings and such investigation can be carried out under section 4(1) of the Cr.P.C.
R. K. Gupta v. Union of India
[2024] 159 taxmann.com 474 (Delhi)
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