Case Note & Summary
The petitioners, Dhyan Investments & Trading Company Ltd. and Tushar Sarda, were accused nos. 3 and 4 in Special Case No.2 of 1998 pending before the Special Court constituted under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992. The case arose from an FIR registered by the Central Bureau of Investigation (CBI) at the behest of Canbank Financial Services Ltd. (CANFINA Services), alleging fraudulent securities transactions causing financial loss. The petitioners filed a writ petition under Articles 226 and 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of the charge-sheet and charge. The court examined the allegations and found that the charge-sheet did not disclose any specific role of the petitioners in the alleged fraud. The court also noted that the trial had been pending for over 25 years, causing inordinate delay and violating the petitioners' right to speedy trial under Article 21. The court held that continuing the proceedings would be an abuse of process of law. Accordingly, the court allowed the petition and quashed the charge-sheet and charge against the petitioners.
Headnote
A) Criminal Procedure - Quashing of Proceedings - Section 482 CrPC - Inherent Powers - The court examined whether the charge-sheet and charge disclosed any prima facie case against the petitioners for offences under the Indian Penal Code and the Special Court Act, and held that the allegations did not make out a case against them. (Paras 1-10) B) Constitutional Law - Right to Speedy Trial - Article 21 - Inordinate Delay - The court considered the 25-year delay in trial and held that it violated the petitioners' fundamental right to speedy trial, warranting quashing of proceedings. (Paras 11-20) C) Securities Law - Special Court Act - Offences - The court analyzed the provisions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 and found no specific allegations against the petitioners under that Act. (Paras 21-30)
Issue of Consideration
Whether the charge-sheet and charge framed against the petitioners in Special Case No.2 of 1998 should be quashed on grounds of lack of evidence and inordinate delay.
Final Decision
The court allowed the petition and quashed the charge-sheet and charge framed against the petitioners in Special Case No.2 of 1998.
Law Points
- Quashing of criminal proceedings
- lack of prima facie case
- inordinate delay
- right to speedy trial
- Section 482 CrPC
- Articles 226 and 227 Constitution of India
