Case Note & Summary
The judgment arises from two connected writ petitions before the Bombay High Court concerning criminal proceedings related to alleged irregularities by M/s Topsgrup Services & Solutions Ltd in a contract with Mumbai Metropolitan Regional Development Authority. The complainant, Ramesh Iyer, alleged inflated billing for guard deployment, off-record cash withdrawals, and commission payments to Amit Chandole. An FIR was registered by the Economic Offences Wing, and after investigation, a 'C' Summary Report was submitted. The Directorate of Enforcement sought committal of the scheduled offence case to the PMLA Special Court under Section 43(2) read with Section 44(1)(c) of the Prevention of Money Laundering Act, 2002. The Additional Chief Metropolitan Magistrate passed an order committing the case and later accepted the 'C' Summary Report. The writ petitions challenged these orders, contending procedural irregularities. The Court examined whether the Magistrate applied mind before accepting the C-Summary Report and whether committal was proper. The Court noted that the order accepting the C-Summary Report showed no application of mind, as it relied solely on the informant's no objection. Citing Bhagwant Singh v. Commr. of Police, the Court reiterated that before dropping proceedings or taking a view of no sufficient ground, the Magistrate must give notice and opportunity of hearing to the informant. The final decision of the Court is not ascertainable from the provided text, but the analysis indicated that the acceptance of C-Summary Report was unsustainable.
Headnote
A) Criminal Procedure - C-Summary Report - Magistrate's duty to apply mind and give notice to informant - Code of Criminal Procedure, 1973, Sections 154, 156, 157, 173 - The Additional Chief Metropolitan Magistrate accepted a 'C' Summary Report solely on the informant's no objection without independently assessing the report. The Court observed that the Magistrate did not apply his mind, and relying on Bhagwant Singh v. Commr. of Police held that before accepting a final report dropping proceedings, the Magistrate must give notice and opportunity of hearing to the informant. Held that the impugned acceptance was unsustainable. (Paras 6-7)
B) Prevention of Money Laundering - Committal of Scheduled Offence Case - Section 43(2) read with Section 44(1)(c) Prevention of Money Laundering Act, 2002 - The Magistrate committed the scheduled offence case to PMLA Special Court based on an application by Enforcement Directorate. The Court examined whether the committal was in accordance with law, involving simultaneous trial of scheduled offences and PMLA offence. The Court's final ruling on this issue is not included in the provided excerpt. (Paras 3-4)
Issue of Consideration
Whether the Additional Chief Metropolitan Magistrate could commit the scheduled offence case to PMLA Special Court under Section 43(2) read with Section 44(1)(c) of PMLA, 2002; Whether the Magistrate applied mind before accepting 'C' Summary Report when informant gave no objection
Law Points
- Magistrate must apply mind before accepting final report under Section 173 CrPC (C-Summary Report)
- informant must be given notice and opportunity of being heard before dropping proceeding or taking view of no sufficient ground
- committal of scheduled offence case to PMLA Special Court under Section 43(2) read with Section 44(1)(c) of PMLA requires proper procedure
- acceptance of C-Summary Report solely on informant's no objection is mechanical exercise of power
Case Details
2025 LawText (BOM) (06) 20
Criminal Writ Petition No. 6332 of 2024 along with Criminal Writ Petition No. 4523 of 2022 and Interim Application (ST) No. 12908 of 2023 and Interim Application No. 1432 of 2023
Mr. Aabad Ponda, Senior Advocate a/w Sebin Michael Joseph, Sandra Jaison & Mayank Jain; Mr. H. S. Venegavkar, SPP a/w Kamar Ali Shaikh & Leepika Rasiwasia; Mr. Amit Desai, Senior Advocate a/w Kushal Mor, Gopal Krishna Iyyer, Mamta Harwani & Riddhi Dhamecha i/b Dhiren H. Shah; Ms. P. P. Bhosale, APP; Mr. Dharmesh Joshi a/w Imran Khan
Amit Chandole (in Criminal Writ Petition No. 6332 of 2024); Directorate of Enforcement (in Criminal Writ Petition No. 4523 of 2022)
Directorate of Enforcement Through its Assistant Director, Mumbai & Anr. (in Criminal Writ Petition No. 6332 of 2024); M/s Topsgrup Services And Solutions Ltd. & Ors. (in Criminal Writ Petition No. 4523 of 2022)
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Nature of Litigation
Writ petitions challenging orders relating to acceptance of 'C' Summary Report and committal of scheduled offences case to PMLA Special Court
Remedy Sought
In Criminal Writ Petition No. 6332 of 2024, petitioner seeks quashing of Order dated 18/07/2022 passed by Additional Chief Metropolitan Magistrate, 47th Court, Esplanade, Mumbai in C.C No. 2448/Misc/2021 and all proceedings consequent thereof. In Criminal Writ Petition No. 4523 of 2022, petitioner seeks quashing of letters dated 7th September 2022, 15th September 2022, letter bearing OW No. 17951/2022 dated 4th August 2022, judgment and order dated 14/09/2022 passed by Additional Chief Metropolitan Magistrate sending records back to PMLA Special Court, and judgment and order dated 14/09/2022 accepting 'C' Summary Report
Filing Reason
Petitioners contend that the Magistrate committed the case without following proper procedure and accepted 'C' Summary Report mechanically without applying mind
Previous Decisions
The Additional Chief Metropolitan Magistrate by order dated 18/07/2022 committed the case to PMLA Special Court; by order dated 14/09/2022 accepted 'C' Summary Report; letters dated 07/09/2022 and 15/09/2022 issued in Special Case No. 1124 of 2020; letter OW No. 17951/2022 dated 04/08/2022 from Registrar of Sessions Court
Issues
Whether the Additional Chief Metropolitan Magistrate could commit the scheduled offence case to PMLA Special Court under Section 43(2) read with Section 44(1)(c) of PMLA, 2002
Whether the Magistrate applied mind before accepting 'C' Summary Report when informant gave no objection
Submissions/Arguments
Directorate of Enforcement contended that committal to PMLA Special Court was proper under Section 43(2) read with Section 44(1)(c) of PMLA, 2002 and relied on Bhagwant Singh v. Commr. of Police
Petitioner argued that Magistrate failed to apply mind and improperly accepted C-Summary Report based solely on informant's no objection, without considering the merits
Ratio Decidendi
The Magistrate must apply mind to a 'C' Summary Report and cannot accept it solely because the informant has no objection; the informant must be given notice and opportunity to be heard if the Magistrate decides to drop proceeding or take view of no sufficient ground.
Judgment Excerpts
A bare perusal of said Order shows that the Additional Chief Metropolitan Magistrate has not applied his mind to the said 'C' Summary Report and only on the ground that the Informant has given no objection, accepted said C-Summary Report.
We are accordingly of the view that in a case where the Magistrate to whom a report is forwarded under sub-section (2)(i) of Section 173 decides not to take cognizance of the offence and to drop the proceeding or takes the view that there is no sufficient ground for proceeding against some of the persons mentioned in the first information report, the Magistrate must give notice to the informant and provide him an opportunity to be heard at the time of consideration of the report.
Procedural History
FIR No.05/2020 registered by Economic Offences Wing; investigation conducted and 'C' Summary Report submitted in CC No.2448/MISC/2021; Directorate of Enforcement filed application before Additional Chief Metropolitan Magistrate, 47th Court, Esplanade, Mumbai seeking committal of scheduled offence case to PMLA Special Court under Section 43(2) read with Section 44(1)(c) of PMLA, 2002; on 18/07/2022 Additional Chief Metropolitan Magistrate passed order committing case to PMLA Special Court; on 14/09/2022 Additional Chief Metropolitan Magistrate accepted 'C' Summary Report; Criminal Writ Petition No.4523 of 2022 filed by Directorate of Enforcement challenging letters and orders; Criminal Writ Petition No.6332 of 2024 filed by Amit Chandole challenging order dated 18/07/2022; both petitions heard together
Acts & Sections
- Prevention of Money Laundering Act, 2002: Section 43(2), Section 44(1)(c)
- Code of Criminal Procedure, 1973: Section 154, Section 156, Section 157, Section 173
