The Calcutta High Court has refused to quash an FIR against Eraaya Lifespaces and its officials. The court stated the allegations of forgery and conspiracy in an NCLT case disclose cognizable offences that require a proper investigation.
The Calcutta High Court has declined to quash an FIR registered against Eraaya Lifespaces Limited, its director Vikas Garg, Company Secretary and other directors and officials of the company, observing that the allegations made in the complaint disclose prima facie cognizable offences which require a proper investigation. The Court directed the investigating agency to make every endeavour to conclude the investigation at the earliest.
Justice Dr. Ajoy Kumar Mukherjee dismissed a criminal revision petition filed by Eraaya Lifespaces Limited and its officials seeking quashing of criminal proceedings arising out of Berhampore Police Station Case registered under various provisions of the Bharatiya Nyaya Sanhita (BNS).
Details of the Allegations
According to the order, the FIR was lodged by a shareholder alleging that another shareholder had instituted proceedings before the National Company Law Tribunal (NCLT), New Delhi, based on a forged Special Power of Attorney (SPA). The complaint alleges that the forged document was used to satisfy the eligibility requirement under the Companies Act and to obtain a status quo order from the NCLT. It further alleges that the accused persons, including the present petitioners, acted in conspiracy by facilitating the use of forged documents and confidential company information, resulting in wrongful loss to shareholders. These allegations remain under investigation.
Petitioners' Arguments
The petitioners contended before the High Court that they had no role in the alleged forgery or conspiracy and argued that the FIR did not disclose any specific material connecting them with the alleged offences.
They also submitted that the alleged forged documents had been filed by another accused before the NCLT and not by the petitioners themselves.
The petitioners further challenged the territorial jurisdiction of Berhampore Police Station and alleged that the proceedings had been initiated with a mala fide intention to harass them.
Complainant's Submission
Opposing the plea, the complainant submitted that the allegations in the FIR disclose a criminal conspiracy involving the petitioners. It was alleged that confidential company information and internal emails were shared with the principal accused and that the petitioners were beneficiaries of the interim order obtained before the NCLT. The complainant argued that these allegations required a full-fledged investigation.
High Court's Observations and Ruling
After considering the rival submissions, the High Court held that at the stage of deciding a petition for quashing, it is only required to examine whether the FIR discloses the commission of a cognizable offence and not whether the allegations are ultimately true. The Court observed that the allegations against the petitioners could not be termed inherently absurd or improbable and that the investigation had only begun. It said the veracity of the allegations must be examined during the course of investigation and, if necessary, at trial.
The Court also rejected the petitioners' objection regarding territorial jurisdiction, holding that an FIR cannot be quashed merely because the investigating police station may not ultimately have territorial jurisdiction over the alleged offence. Referring to settled Supreme Court precedents, the Court observed that such issues can be examined at the appropriate stage and do not justify interference at the investigation stage.
On the contention that the proceedings were actuated by mala fides, the Court observed that allegations regarding the complainant's motive are of secondary importance once information disclosing a cognizable offence has been registered. The Court held that the outcome of the case would depend upon the evidence collected during the investigation and not merely on allegations of mala fides.
Holding that the allegations in the FIR require a proper investigation "to unearth the truth", the High Court dismissed the petition seeking quashing of the criminal proceedings. It directed the investigating agency to make every endeavour to complete the investigation at the earliest and dispose of the connected applications. (ANI)
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