M. VISWANATHAN v. M/S. S.K. TILES & POTTERIES P. LTD & Ors.

1.3. The powers possessed by the High Court under Section 482 of the Code are very wide and the very plenitude of the power requires great caution in its exercise. Court must be careful to see that its decision in. exercise of this power is based on sound principles. B The inherent power should not be exercised to stifle a legitimate prosecution. The High Court being the highest court of a State should normally refrain from giving a prima facie decision :in a case where the entire facts are incomplete and hazy, more so when the evidence has not c been collected and produced before the Court and the issues involved, whether factual or legal, are of magnitude and cannot be seen in their true perspective . without sufficient material. Of course, no hard-and-fast rule can be laid down in regard to cases in which the High D Court will exercise its extraordinary jurisdiction of quashing the proceeding at any stage. [Para 16] [598-F- H; 599:A] F E

1.4. It would not be proper for the High Court to analyse the case of the complainant in the light of all probabilities in order to determine whether a conviction would be sustainable and on such premises arrive at a conclusion that the proceedings are to be quashed. It would be erroneous to assess the material before it and conclude that the com~laint cannot be proceeded with. In a proceeding instituted on complaint, exercise of the inherent powers to quash the proceedings is called for only in a case where the complaint does not disclose any offence or is frivolous, vexatious or oppressive. If the allegations set out in the complaint do not constitute the offence of which cognizance has been taken by the Magistrate, it is open to the High Court to quash the same in' exercise of the inherent powers under Section 482 of the Code. It is not, however, necessary thatthere should be meticulous analysis of the case b~fore the trial to find H out whether the case would end in conviction 6r acquittal. G f-- ., ~ I ~ ._,. > .... -+ ... - i _;.. '>- ..., M. VISWANATHAN v. S.K. TILES & POTTERIES P.·LTD . 587 & ORS. The complaint has to be read as a whole. If it appears that A on consideration of the allegations in th·e light of the statement made on oath of the complainant that the ingredients of the offence or offences are disclosed and there is no material to show that the complaint is mala fide, frivolous or vexatious, in that event there would be B no justification for interference by the High Court. When an information is lodged at the police station and an offence is registered, then the ma/a fides of the informant would be of secondary importance. It is the material collected during the investigation and evidence led in c court which decides the fate of the accused person. The allegations of. ma/a fides against the informant are of no consequence and cannot by themselves be the basis for quashing the proceedings. [Para 16] [599-A-G]

#2. Reading of the complaint clearly shows that the I allegations are substantially made out. This is not a case i where the jurisdiction under Section 482 Cr.P.C. was to be exercised. The High Court wrongly came to the conclusion that the matter in issue was to be decided by a Civil Court or the Company Law Board. The High Court referred to the four types of allegations. Some of the allegations are certainly not adjudicable by the Civil Court or the Company Law Board. That being so the exercise of jurisdiction by the High Court in terms of Section 482 Cr.P.C. cannot be maintained. The impugned o~der is indefensible and is set aside. [Paras 12 and 18] [594-E; 600-C·D] I D E F . _,,. -;- Janata Dal v. H. S. Chowdhary 1992 (4) SCC 305; Raghubir Saran (Dr.) v. State of Bihar AIR 1964 SC 1; G Dhana/akshmi v. R. Prasanna Kumar 1990 Supp SCC 686; State of Bihar v. P. P. Sharma AIR 1996 SC 309; Rupan Deol Bajaj v. Kanwar Pal Singh Gill 1995 (6) SCC 194; State of Kera/av. 0. C. Kuttan AIR 1999 SC 1044; State of U.P. v. 0. P. Sharma 1996 (7) SCC 705; Rashmi Kumar v. Mahesh H 588 SUPREME COURT REPORTS [2008] 16 S.C.R. ,.