Case Note & Summary
The dispute arose from a criminal case involving allegations of cheating against a Mumbai-based company by a Shillong company. The Shillong company filed an FIR, but the police's slow investigation prompted them to seek intervention from the High Court of Guwahati. The High Court directed the complainant to fund the investigation, which was contested by the accused, who argued that such funding would compromise the integrity of the investigation. The accused approached the Supreme Court after the High Court's direction was upheld by a Division Bench. The Supreme Court examined whether a statutory investigating agency could be compelled to accept financial assistance from private parties. It concluded that investigations must be conducted solely with state funds to maintain impartiality and prevent any undue influence from financially capable complainants. The court referenced various provisions of the Code of Criminal Procedure and previous judgments to support its reasoning. Ultimately, the Supreme Court set aside the High Court's directions for private funding, asserting that such practices would lead to a miscarriage of justice and create an undesirable precedent.
Headnote
A) Criminal Procedure - Investigation Funding - Statutory Investigation Cannot Be Funded by Private Parties - Code of Criminal Procedure, 1973, Section 2(h) - The court held that allowing private funding for police investigations undermines the impartiality and integrity of the statutory investigation process, which must be conducted without external influence. The court emphasized that all investigations should be funded by the state to ensure fairness and equality, regardless of the financial capacity of the complainant. Held that private funding would vitiate the investigation and lead to a miscarriage of justice (Paras 1-5).
Issue of Consideration
Whether a statutory investigating agency can be directed to obtain financial assistance from private parties for conducting an investigation.
Final Decision
The Supreme Court set aside the directions of the High Court for the complainant to supply funds to the police for conducting the investigation, emphasizing that investigations must be funded by the state to ensure impartiality and fairness.
Law Points
- investigation
- statutory duties
- financial assistance
- Code of Criminal Procedure
- impartiality

