Supreme Court Upholds Special Court's Jurisdiction in Securities Transactions Case — Clarifies Pardon Powers.

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Case Note & Summary

The case involved appeals concerning the jurisdiction and powers of the Special Court established under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992. The appellants challenged the legality of a Special Court order granting pardon to two accomplices, arguing that the Special Court lacked the jurisdiction to do so under the provisions of the Criminal Procedure Code, 1973. The Special Court had granted pardon on the condition that the accomplices would testify during the trial, but the appellants contended that the power to grant pardon must be expressly conferred by law. The court analyzed the relevant provisions of the Special Court Act and the Criminal Procedure Code, noting that while the Special Court is a court of original criminal jurisdiction, it does not possess inherent powers to grant pardon unless specifically provided for in the statute. The court emphasized that the legislative intent was clear in not conferring such powers to the Special Court, as evidenced by the omission of similar provisions found in earlier enactments. The court ultimately concluded that the Special Court's order granting pardon was without jurisdiction, thereby upholding the appellants' contention. The decision clarified the interpretation of statutory provisions regarding the powers of special courts and the conditions under which pardons may be granted.

Headnote

A) Criminal Procedure - Pardon Powers - Interpretation of Sections 306 and 307 - Code of Criminal Procedure, 1973 - The court examined whether the Special Court established under the Special Court Act has the authority to grant pardon to accomplices as per the provisions of the Code. It was held that the power to grant pardon is not inherent to the Special Court and must be expressly conferred, which was not done in this case. Therefore, the Special Court lacked jurisdiction to grant pardon (Paras 1-15).

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Issue of Consideration

Whether the Special Court has the power to grant pardon under Sections 306 and 307 of the Code of Criminal Procedure, 1973.

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Final Decision

The Supreme Court held that the Special Court lacked jurisdiction to grant pardon under the provisions of the Code of Criminal Procedure, 1973. The court emphasized that the power to grant pardon must be expressly conferred and was not included in the Special Court Act. The order granting pardon was set aside.

Law Points

  • jurisdiction of special courts
  • powers of special courts
  • interpretation of statutory provisions
  • tender of pardon
  • Criminal Procedure Code
  • 1973
  • Special Court (Trial of Offences Relating to Transactions in Securities) Act
  • 1992
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Case Details

2001 LawText (SC) (09) 39

Appeal (crl.) 319-320 of 1996

2001-09-06

S.P. Bharucha, Y.K. Sabharwal, Brijesh Kumar

Harshad S. Mehta & Ors.

The State of Maharashtra

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Nature of Litigation

Appeal against the order of the Special Court regarding the grant of pardon.

Remedy Sought

Appellants sought to revoke the pardon granted by the Special Court.

Filing Reason

The appellants contended that the Special Court lacked jurisdiction to grant pardon.

Previous Decisions

The Special Court had previously granted pardon to accomplices under the condition of their testimony.

Issues

Whether the Special Court has the power to grant pardon under the Code of Criminal Procedure. Whether the provisions of Sections 306 and 307 apply to the proceedings before the Special Court.

Submissions/Arguments

The appellants argued that the Special Court does not have inherent powers to grant pardon as it is not expressly conferred by the Act. The respondents contended that the Special Court, being a court of original jurisdiction, should have the power to grant pardon.

Ratio Decidendi

The Special Court does not possess inherent powers to grant pardon unless such powers are expressly conferred by statute. The legislative intent was clear in not providing such powers in the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992.

Judgment Excerpts

The Special Court lacks jurisdiction to grant pardon. The power to grant pardon must be expressly conferred. The legislative intent was clear in not conferring such powers.

Procedural History

The Special Court granted pardon on 22nd June 1993, which was later challenged by the appellants in applications filed on 9th January 1996. The Special Court dismissed the applications seeking revocation of the pardon on 6th February 1996.

Acts & Sections

  • Code of Criminal Procedure, 1973: Sections 306, 307, 308
  • Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992: Sections 3, 6, 7, 9, 13
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